Its been a while since I’ve posted an Investor Special–mostly because all you investors are keeping me busy. That and because the NFL lockout has me all tied up in knots at the thought of a lockout. But I couldn’t pass up taking the time to work the numbers on this one! And yes, this is one of those “handyman specials” you find from time to time. Obviously a handyman special isn’t for everyone, and if its not for you, you can still go find your perfect investmentÂ Boise Home over on the search page!
11345 W Arch St is a small 2 bed, 1 bath, 1078 sq ft Real Estate Owned (REO or “Bank-Owned”) fixer that’s been on the MLS almost the needed 15 days for investors to start making a bid. Now, when I say fixer, I mean you could be justified in tearing this heap down and starting over. However, if you were looking to acquire a rental, with some work you could get this to place livable and rented in my estimation. As an aside, tomorrow I’ll have a look at the 2011 1st QuarterÂ Boise Rental Statistics; you’ll get to see how good it is to be a landlord right now.
Have a look at the pro-forma I put together for the property. I estimated $45,000 to get it rentable. It needs at least $10,000 in estimated work that I could see. Of course your milage will vary.
Here are the numbers quickly:
- The Cap Rate is at 10.66% if rent is at $700 / month.
- It Cash Flows with 25% down at $211 / month or $2,536 annually.
- And your Cash on Cash Return with 25% down is a healthy 42%.