Here’s a new city that Hipster hasn’t yet featured on the site. Did you know Birmingham has over a million people and climbing? Really! Not only that, but jobs in medical research and banking drive the economy, and the unemployment rate is well below the national average.
Ranking in Zagat’s Top 10 Up and Coming Food Cities, scoring one of the Top 10 most beautiful theaters in America, and being ranked by the New York Times as one of the nation’s Hotspots for Young Professionals, we’re loving what we see down in Birmingham! Not to mention that downtown Birmingham is going through a complete Renaissance centered around a $69 million minor league baseball stadium, new entertainment district, new parks, new restaurants, and new hotels.
Plus in the real estate investing market you’ll see fully-renovated single family homes, owner-occupied communities in good school districts, tenants and local property management in place, and more great deals for you!
LOCATION: Pelham, AL.
Built In: 1976 (and fully renovated)
Purchase price: $160,000 (not a foreclosure, normal sale)
Property info: 4 bedrooms, 3 bathrooms, 1,595 square feet, 1 story, 2 car garage
Monthly rent collected: $1,750
Monthly expenses (conservatively estimated)
Property taxes: $77
Property management fees: $140
Vacancy (7%): $123
Repairs (5%): $88
Total Monthly Expenses- $464
Net Income = Income – Expenses = $1286
Cap Rate = 9.64 %
annual net income (non-inclusive of mortgage payment) / purchase price
Cash-on-cash return =
Depends on your leveraging.
- Tenant in Place as Condition of Closing
- 1 year Scope of Work Warranty
- Discounted Property Management Rate of 8% (usually 10%)
- Requires Use of Seller’s Property Management Company
If you are interested in this property or seeing others like it, contact Melissa at firstname.lastname@example.org.
Take the plunge: you won’t regret it!