Wholesale Properties for Real Estate Investors and Rehabbers

Have you heard of the “1% Rule”?  That’s where investors say if you pay $50,000 for a rental house, you need to get at least $500 (1%) per month in rent.  If you pay $75,000, you need to get $750/mo and so on.

Personally, I won’t go less than 1.33% unless it’s a solid lease-option deal with a good sized option fee and a tenant/buyer that can go from tenant to buyer pretty quickly.  An example of my minimum requirement would be if I pay $50,000 for a rental property, I need to get $665 (1.33%) per month in rent.  I prefer 1.5%.  Of course that does NOT mean you charge higher-than-market rent (or try to), it means you buy the property for the right price.  

Here is one of those rare (and I mean rare - we have one other right now) 2% deals!  Well, it’s actually 1.81%.  This property brings in $996.67/mo from weekly renters that pay $120 and $110, respectively.  $230 x 52 = $11,960 (divided by 12 = $996.97/mo).

See photos.

Even if you used only YOUR OWN CASH to buy this deal, your cash-on-cash return is 21.75%!  Where else do you get that?  Do you realize your renters will PAY FOR THIS PROPERTY for you in less than 5 years? 

The best part?  One renter has been there 10 years, the other 6 years.  Talk about stability.  This property is like your own personal ATM machine!

I’ve got this deal under contract.  YOU can get it for $55,000.  The seller MUST close by 10/30/09, so no “tire-kickers,” please, only serious investors that can move quickly.  I’m selling it because I am in negotiations on 10 townhouse units and those will spread me pretty thin.  If no one buys it though, I will.  These deals don’t come along often enough to let even one slip by.

Live out of the area?  I’ll collect your rent and keep an eye on the place for you for 10% of what I collect.

See photos.

Get off the sidelines and TAKE ACTION today.