194/196 Myrtle St came on the market in August of 2018 for $399,900. I like the area of this property and I like the size. I also like that it needs some cosmetic work but not too much. It was fully occupied, by two long-term tenants, and two “not-so” long term tenants. After having my contractor, Tom Czaplinski, look it over, he estimated it needed approximately 5K worth of cosmetic work to get in where it needed to be. That included some tree removal, work to the front stoop and sidewalks, back decks, bilco door, and some standard paint, etc…..
I made my initial offer for $340,000 and the seller’s agent laughed us away. We waited for four months which saw limited action on the house. The seller came back to us and asked us to consider $380, I countered and we settled at 355,000 We closed on Dec 7, 2018.
Financial Breakdown
PITI: 2200
Property Management: 410
Vacancy: 5% (205)
Maintenance: 10% (410)
CAPEX: 410
Rent Collected: 4100
Cash Flow: $465
*Shortly after purchase, one of the furnaces died. It was a $7500 replacement. Didn’t expect that and it cost me almost the entire year cash flow and CAPEX up front. Fortunately I bought the property at the right price…..
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