Leased for $1400 mo to Long Term Tenant – Good Upside

Looking for an investable asset that is turnkey with a tenant?  This rare opportunity is located in the city of Brandon, FL which is a suburb a quick 15 minute commute from Downtown Tampa, via Selmon Expressway.  Brandon is increasingly known for its schools, shopping, and suburban feel, yet convenience to Tampa and the big city amenities.

This property is occupied and leased to a tenant who renewed in June for another 12 months.  The community is sought after and convenient to everything Brandon has to offer.

The property has recently had some major improvements completed to include:  new roof, new plumbing, new insulation, and new sod in the front.  Numerous other minor repairs have been made and the home has recently been inspected.

The details:

  • Investor Price $177,900
  • Property is not on market
  • 3 bed / 2 bath single-family home
  • 2009 SF
  • 1995 construction
  • Rent is $1400 currently (market is $1500+)
  • HOA ~$750 annual
  • $2,853 in property taxes
  • Recently appraised at $185,000.
  • Comparable sales $185-190k in current condition $215k+ in fully updated home with stainless, granite, etc.

 

 

Front-Reno

The play:

Acquire and lease to current occupant at current rent rates.  If tenant decides to renew increase step-wise.

If tenant vacates, take 1 of 2 routes:

1.  New carpet, new paint, new fixtures – re-rent $1450-1500-ish

2. Fully update, new kitchen, tile throughout, stainless appliances – push rent to $1550-1600 at that time

Finally sell down road for retail.

This is a good value add deal.

Appreciation in this area is running 7.5.  Using conservative 4.5% for 2014-2015 estimate year 1 growth: $8325

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