Advantages of Rehabbing a House by Ben Moskel

One of the big advantages of rehabbing a house is that you have 2 primary options:

1. Buy it, rehab it, and sell it. This provides for a big payday.

2. Buy it, rehab it, and rent it. This option provides you with a steady cash flow stream. The advantage here is that you can get away with spending less money on the rehab.

Here is a house that I think would be an OUTSTANDING cash flow rental property:

The fundamentals are solid; it just needs some cosmetic work, and mostly on the interior.

Here are the numbers:

Purchase Price: $4,500
Rehab costs for rental: $20,000
Total investment: $24,000

Annual Cash Flow: $14,400 ($600/month/unit)

That is an incredible return on your money! You would have your entire investment paid off in just 20 months.

After that, you would be making $1,200 per month, minus upkeep, from this one property!

How many of these houses would you need to retire comfortably?

How many would you need to retire VERY comfortably?