Here Try This: Positive cash-flow ready investment property (short sale) that can be bought, rehabbed, and rented. CFBT (Cash flow before taxes) is at $6800/yr for the first year (which includes rehab costs) and gross operating income at $17,000/yr.
The Scope: This Tucson property has two units on the lot (3BR/2BA Main house and 1BR/1BA Guest house). Built in 1948 this mostly brick house is approx 1670 sq-ft on a 10,100 sq-ft lot. Cool thing is this property is adjacent to a shopping mall, off of the main street with bus service routes, and stone throw away from a beautiful park and the University of Arizona. It is as described by my real estate friend a near perfect location at the center of town that can attract families, grad/med students, and maybe even some junior/senior year undergrads. It is however a short sale property that apparently went on the market for $179k late last year and due to a discover of bad gas lines, the previous buyer backed out of escrow. Since then the price has dropped to $151k and apparently that's what the bank will accept (pre-approved). A little digging into the property shows that the house previously had occupants that were accused of running drug trafficking but the neighborhood seems to be rental friendly.
Check out the attached spreadsheet for more detail breakdown of assumptions of calculations:
What's Next: I scheduled a time to visit this property tomorrow afternoon. I'll take pictures and hopefully speak to a knowledgeable rehab contractor while I'm there.
I forgot to mention that $4000 of the rehab will go toward putting in new gas lines and $1500 into rewiring electrical and cosmetics (new paint, carpet, sink/toilet accessories).
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