Steve D Valentine breaks down a two-house deal on one acre with dual street frontage. Renting both could bring in $6,000 a month, but renovations would cost $200k to $250k per house, making the numbers too tight to work.
So looking at comps, you can buy a vacant acre for 250 grand. Maybe this one has two homes on it. Yes, they both need to be renovated. The benefit of this one is that it has dual street frontage, so it has Union Hills, and it has 38th Avenue. The way these two houses are set up is right behind this garage. We technically could fence off the yard and rent that house and that house separately, creating about $6,000 of income monthly. With those two homes being rented, that one has a separate meter, so it means that, you know, we can have dual utilities. You can actually have two rental properties, even though one's technically a guest house. So it makes a difference, the value on it. Let's see how good I am. Watch a reaction. I think we probably have to put 250 grand into this. We're at least 200 grand per house. No, we're not. Okay, okay. Never mind. This deal won't work. She's too expensive.
It’s Not What Your House Is Worth; It’s What It Can Do for You (Pause, Identify, Respond)
