Thanks so much for tuning into episode 4 of the From The Nest Podcast!
INCOME PROPERTY STATS
- Asking price: $99,900
- Purchase Price: $87,000
- Bedrooms: 3
- Bathrooms: 1.5
- Square Footage: 1,290
- School District: good
We spent about $10K on renovations for this property which included new appliances, a brand new kitchen and a fresh paint job. To see the full story behind this home and all of the before photos, check out this post.
Dining Room After
Built in buffet for extra storage with a stained piece of pine as the countertop to lower the cost ($20)
Master Bedroom Before
Master Bedroom After
We painted the built-ins white and added new knobs to complete the look of this bedroom.
Bonus room off of the bedroom upstairs.
What we would change with our renovation
The one thing we would change if we could do this renovation over again – the flooring! In theory, this floor seems like it would work great, but because it is an old house and the floors are not completely level, the floor tiles do not snap together perfectly and are not completely flush in all areas of the kitchen.
Capitola Silver Life Proof floor tiles – we would not recommend using this in an old home with floors that are not level.
ANALYZING THE DEAL
CAP RATE = NET OPERATING INCOME / PROPERTY VALUE
- Net Operating Income (NOI) = annual gross income – annual expenses
- Annual expenses: Property Expenses, maintenance, taxes, insurance
- Property Value (what we bought the property for): $87,000
- Annual Gross Income (annual rent): $14,400 ($1,200/month)
- Annual Expenses: $3,700
- Taxes: $1,300
- Insurance: $1,200
- Maintenance: $1,200
- NOI: $14,400 – $3,700 = $10,700
- CAP RATE: $10,700/$87,000 = 12%