You collect rent the month you close, and you still have room to push it. A tenant is in place at $1,700 per month, market for this unit is $1,961, and we just cut the price from $159,000 to $152,000. That puts the pro forma cap rate at 10.1% with $261 a month of rent upside sitting there at renewal. The tenant pays all utilities including water and sewer, which holds owner expenses to taxes, insurance, and management. Cleveland ranked third in the country for rent growth over the past year, with single-family rents up 9.4%.k.
This is an assignment. Once it's gone, it's gone.
PROPERTY DETAILS
Type: Single family, 1 unit
Unit Mix: 4 bed / 1 bath
Square Footage: 1,428 sq ft
Construction: Brick with vinyl siding
Roof: Pitched asphalt shingle
Parking: Detached garage plus off street parking
Occupancy: Occupied at $1,700/mo, no lease up, no rent loss at closing
Utilities: Tenant pays everything including water and sewer
THE NUMBERS
Current Rent: $1,700/month ($20,400/yr)
Pro Forma Rent: $1,961/month ($23,532/yr)
Rent Upside: $261/month ($3,132/yr)
Actual NOI: $12,740/yr
Pro Forma NOI: $15,402/yr
Pro Forma Cap Rate: 10.1%
Rent to Price: 1.12% monthly, clears the 1% rule
Occupancy: Occupied, tenant in place
TERMS
Cash / Hard Money / Private Money
Proof of Funds required with all offers
$5,000 EMD required
Fast close required
Sold as is, seller will not make repairs
First qualified buyer with funds verification moves to the front.
