Update: I got a full priced offer at my asking price. The buyer is a fellow investor thinking he will hold the property and enjoy the benefits of our increasing market. I think that is a good plan, but I like my investments to produce quality income while I hold them. For me, this property seems like a lot more babysitting than I'm prepared to deal with. Besides, I paid $54,000 for the house plus about $1,000 in closing costs. My asking price was $84,900. This will net me just over $20,000 and I only had to spend $2,000 on rehab which consisted mostly of tearing down the chicken coop, a beat up old shed and a bad addition on the side of the garage.
Picked up this turnkey rental, but I'm not the landlord for this product
I snapped up this cute little 2 bedroom house and was planning on adding it to my portfolio. For what I paid for it and what I expect it to rent for, I'd get about a 15% return on my investment. The game plan was to hold it for a year, and then sell it next summer so I could take advantage of the expected appreciation. The house needs very little work. The former owner held it for 41 years and recently invested quite a bit of cash into her. The kitchen has been updated as well as the bathroom. It really just needs the chicken coop out back taken down, some other trash hauled off and a toilet paper holder installed.
I put a For Rent sign on the front of the house to see what I might attract. Although I've had plenty of prospective tenants interested at my asking rent, none of them were the types of tenants I could see myself dealing with. The guy who just called only makes twice the asking rent and has a pit bull. Uh, no thank you. This seems to be a common theme.
I decided to list the house and see what happens. I added "Cash offers to be considered first" to the listing description. I could wholesale it, but I'd rather sell it to an over-zealous landlord at a premium price. I'll update this when I get my offer.