Gary thought it was a no brainer to purchase a house listed under $200,000 in Dublin school. He understands that Japanese people’s number one choice of school district is Dublin and that there will be always a tenant who looks for a leased house under $2,000.00/mon because of the amount of housing allowances given by their employees. So when this opportunity arose, he jumped on it while other investors were little hesitant on this one.
The house was remodeled, however, an old pine tree behind the house worried me when I showed the house to his tenant-to-be. Its root was overgrowing under the bricked patio area to make it uneven. It would eventually reach the foundation of the house and cause a big trouble. So I suggested Gary to offer the full price (because the listing price seemed to be fair market price according to the CMA that I ran) but to include the removal of the tree, relaying the bricks/wooden steps to be done by the Seller in his offer.
The offer was made on September 9, 2013. Although the Seller agreed to the terms, it took a while to get an estimate from contractors. After the Seller found a satisfactory quote from a contractor, the house went into contract on September 14. The tenant was hoping to move in by the end of this month. Closing a deal in less than two weeks is a tight job to a lender, but Brian Hitchcock from the Arlington Bank put it together and it closed on time on September 26.
With the tenant’s request, some ceiling lights were installed and walls were painted. We noticed the ceramic divided kitchen sink was chipped. So Gary installed a new undivided sink which often gets requested for the tenant. Hope it will make the tenant’s wife happy when she catches up later with the tenant in Columbus 🙂
【3Bed/2.5 Bath/2 Car Grage Single Family Home in Dublin】
cap rate/year (NOI) 8-9%
annual cash flow from $5,200-7,000
pay off comes on 5th year