$270,000 for property and adjacent lot + $10,000 assignment + List Back
Rent the house
Attempt to short plat the backyard
Build two houses (total of 3 properties on 1 lot)
Expected $1,800/month rent
Confirmed Construction Costs
Financing - How did you fund this deal?
Private Loan initially
Cash out Refi - $170,000 @ 4.625% 30 years fixed $1,400/month
Spent $20,000 on repair, updated flooring
Spent $60,000 on short plat, additional $40,000 expected for street improvements
After upgrading the house + obtained updated rental comps
House Rented for $2,600/month!
Short Plat in process
Knowing the section 8 system is a competitive advantage
By working with Section 8 program, we were able to secure a long term, stable tenant at full Market Rent. It takes a little more patience to set up with the program.
Short plat takes 1-2 years | $100k
The short plat process takes 1-2 years to complete. This is okay with the rental property combination, we are not in a hurry. The recurring monthly income makes this deal good without the short plat. This is just an added bonus!