House #25 – Another Buy and Hold with a Great Rent to Price Ratio
June 2015
Rental House #25 29110 Fleeted Digesters
It must’ve been our lucky summer because as soon as we finished with House #24, we went back to the MLS like a bad habit and found 29110 Fleeted Digesters for sale. We had to have it. This home was a three bedroom two bath house built in 1978 with a little over 1400 sqft. This property was located in our favorite neighborhood, as well. Great balance of property taxes, schools, and potential appreciation. We negotiated a price of $105,000 with $2,000 back at closing and 3% back to us as we were the buyer’s agent in the transaction.
We got a loan from our current favorite banker at a rate of 4.75% with an $81,600 note, which means we needed to bring $17,810 to closing. It’s a 20-year loan with a 5-year adjustable rate. (6/6/2020)
That means-
- $105,000 Sales Price
- – $2,000 in seller’s contributions
- -$3,150 back in the form of commission
- $99,850 Actual purchase price. This property will be a great one for The Stealthy Rich.
Rental House HUD
Pics of Rental House
Rehab and Make Ready
Luckily on this one, it was pretty much rent ready on the day we bought it. We discovered that the electric panel was the original from 1978, and it was a ticking time bomb. Our trusty electrician changed it out for $1200 bucks. Add in some new door locks, make ready clean, the above professional pics and we get to about $1600 in total additional cost.
Bringing The Factory Online
We listed this house on the MLS for rent with the above pics and we immediately found a renter for $1,250 a month, and it started on July 1st! Only 15 days after we purchased this property. That’s as an efficient lease-up as we’ve ever done. Clockwork.
Rent to Price Ratio: $1,250/ 99,850 purchase price + 1600 make ready = 1.2 (A solid double)
This one hopefully will serve us well for a very long time.
Net Worth Update
We joined the 700k club with this update. Stay tuned for the next house.
