Turnkey 3/1 Single Family - Birmingham, AL 35211

This was a turnkey single family 3 bed one 1 bath house with hardwood floors throughout! Ended up offering at the list price of 64,900 and closed a few weeks later at 64,900. This home was tenant occupied with a section 8 (housing choice voucher) tenant which was great as we were able to cut through the 2-3 month long process of getting a tenant in the unit.

Months later I realized we would be able to raise rents with the current tenant, she moved out after the lease term and a new tenant was found with a housing choice voucher for 1070 a month. However the unit unfortunately sat vacant for months while finding a new tenant.

Interior Rehab:

• Attic cover needed in main hallway

• Tenant punchlist items (varies items that needed to be addressed that prerior owner had left)

Total Bid: 6,000

After Rehab Pictures Listing Pictures:

The Numbers For This One:

Initial Cost:

Purchase price: 64,900

Rehab cost: 21,000 (Including additional rehab for tenant turn over and a few more things.)

Closing costs: 2,289

Total: 88,189

Monthly Income:

Monthly rent: 1,070

Property management: -107 (10%)

Property insurance: 98 (1,181 annually)

Property taxes: 63 (755 annually)

Total: 802

**Does NOT include debt payments**

Summary:

Initial cost: 88,189

Net annual rent: 9,600

Annualized cash on cash return: 10%

Thoughts:

A messy one, shouldn't of bought it. Location, size and house was the reasoning why it sat vacant for 6-7 months before finding a tenant. Lesson learned, still cashflows.

**Note: the numbers detailed here are missing a few costs such as utilities cost during rehab, property management new tenant leasing fee and appliances for the unit.