Just bought another 12% yield!

[TexasHusker]

I put a contract on this beauty today for $182K. Fully furnished, New HVAC, hot tub, septic, appliances. The annual rents are in the $30K range, translating into a net of around $22K after expenses each year.

I think I can very easily get the top line to $35K and the bottom line to $27K.

[TexasHusker]

duplicate post sorry

[disneysteve]

Congrats! I hope it works out well for you.

[corn18]

That is beautiful! I would love to take my wife to a place like that.

[StormRichards]

That is beautiful! I would love to take my wife to a place like that.

Perhaps TH can give you a SavingsAdvice discount

[TexasHusker]

I actually bought this for my father with some of his estate - he has Alzheimer's and we are using the income to help preserve his nest egg and pay for expenses. It's a bit like an annuity except we are keeping the underlying asset and hopefully it will appreciate over time.

[amastewa93]

Outstanding buy.

[Outdoorsygal]

My dreamhome!!!

Except that would be at least 500K here

Congratulations!!!

[bjl584]

Beautiful place.

Congrats

[Poppasmurf]

very rustic ... good deal!

[LivingAlmostLarge]

Awesome. how do you know the rents before you buy it?

[disneysteve]

Awesome. how do you know the rents before you buy it?

I would think before buying an existing rental property that's one of the key things you'd be looking at - the property's rental history and the going rate.

[TexasHusker]

Awesome. how do you know the rents before you buy it?

For rentals you look at the "CAP" rate the last 3 years and average it.

The capitalization rate is the rate of return on a real estate investment property based on the income that the property is generates. The capitalization rate is used to estimate the investor's potential return on his or her investment. ... Capitalization Rate = Net Operating Income / Current Market Value.

[tripods68]

That's very nice.

So What s your CAP Rate return after expenses?

[TexasHusker]

That's very nice.

So What s your CAP Rate return after expenses?

It's a little early to tell yet, but it looks like 12 to 13% annual yield.