Two 3/1s Rented, Good Deals I Think.

I recently had the chance to have a look at two separate 3 bedroom 1 bathroom houses that already had tenants for the last few years. House #1:

3 bed 1 bath. A little more than a thousand sqft feet. Recently the entire house had been re wired, with the interior being redone a year or two ago it seemed.

It's rented for 1,240, with a sweet family living in it. 100% covered by the housing authority. At a purchase price of 64,000, it was a screaming deal. Some dude just wanted to get rid of it, I think it was his only rental or one of a few and just wanted out per my realtor. This deal goes way past the 1% rent-to-value rule. At about 1.9%, and already has a great tenant in place! She was very sweet! Reminded me a bit of the house I grew up in truthfully.

House #2: Another 3 bed 1 bath. This one was a bit bigger, I believe 1,200+- sqft, and an additional 800sqft basement. Brand new main sewer line from house to city connection, HVAC seemed newer, has a nice split system (I think), the inside was beautiful, the tenant added mulch and lights by the steps to it, seems like she really made it a home for her family. It was very nice to see.

This one I bought for 73,000 off market. The owner wanted something like 85, I was at 78, had a look inside it and saw the roof and came back at 73,000. He went for it quickly, and I immediately thought, "Dammit! I shoulda gone lower". Still a great deal! The rent on this one is high! Coming in at 1440! again, seems to be way above the 1% rent-to-value rate. At about another 1.9% My take on these two: I like them, a lot. The tenants are great, the numbers are great. Hopefully I can find some more of these leased houses that make sense numbers wise. It cuts down the time it takes to buy a house, renovate it, go through tedious inspections, and finally secure a HAP contract and getting paid. Just to get it appraised and refinance it, which ads more weeks/months to the process. With these it's easy, the already have tenant, so just have to bundle them into a bigger loan for loan limits and refinance and swing into the next.

At the end of the day it just makes great sense numbers wise.