House #6: Red Garage House

January 23, 2009 · 2 comments

We just put another house under contract today…

Based on the location, quick financial analysis, and our acquisition plan/goals, the most likely exit strategy for this property will be long-term rental or lease-option to a tenant. Assuming we follow through on this exit strategy, this would be our first long-term buy-and-hold project, forcing us to learn a whole new aspect of real estate investing. Not only will we need to figure out the appropriate scope of rehab for a rental property (much different than the previous rehabs we’ve done), but we’ll need to figure out all the aspects of being a landlord — marketing, qualifying prospects, contracts, dealing with maintenance issues, collecting rent, dealing with tenants, etc.

Over the next week or so, I’ll post more detail about the financial analysis behind our rental decision, I’ll post some pictures, and I’ll go into some detail about my thoughts on renting vs lease-optioning the property. There are other exit strategies that will likely work with this property (flip to retail buyer, rent and flip to investor, etc), so we’ll also examine those to determine whether turning this property into a rental is the optimal exit strategy or not…

Oh, if it wasn’t already clear, this one has a hideous red (painted) garage that makes you think a horror movie was shot in there…


2 responses to “House #6: Red Garage House”

  1. Steph says:

    Let’s see some pics of that garage… 🙂

  2. J Scott says:

    Pics are coming!!!

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