Texas Investment: 708 Grande Dr. Mesquite

This property is located at 708 Grande Dr. Mesquite, Listing Price: $70,000. The tenant currently pays $850 a month and the lease expires March 2015, the tenant is very likely to renew the lease.
1) Location: Older Mesquite
2) Neighborhood – clean, appears to be a blue collar neighborhood
3) Neighbors – The neighbors seem to know each other well, helping each other out – it was a hot Saturday afternoon, so 4 households gathered together drinking beer and play with kids
4) Tenant – 3 young adults, no kids
It is clean, lawns are cut, trees, well maintained, but older neighborhood, not very noisy, primarily families with kids. Some light industrial warehouses on the main street – which is about 2 miles away.
The elementary school is within walking distance, it is very new, the building was built last year or the year before – it’s huge with playgrounds. High School is not far away. The schools are average rated (6,6,5).
Good Points
1) No big trees in the front
2) New roof (installed last month)
3) No major problems inside
4) Tenant looks clean (1 girl, her brother and her boyfriend)
5) Tenants don’t seem to be cooking a lot
6) Furnance & A/C work well
7) Backyard is actually nice size (can add more rooms in future)
8) Attached garage (not converted)
9) 2 Full bathrooms
Bad Points
1) Several tiles on floor need re-grouting
2) Smaller home
3) No dining room – there is a small dining area next to kitchen, not sufficient to put in a full sized dining table
4) They do have some cracks (along one wall)
5) Left neighbor has one broken car and put some parts on the driveway – looks they are in the middle of doing something.
6) There is a big tree at back  – we will suggest to cut back the limbs
1) Ask the seller to cut back the trees at back
2) Re-grout and fix loose tiles
3) Request an inspection make sure all faucets are working, and no major foundation damage
4) Foundation issue can be fixed later or request the seller to fix them now – doesn’t look to be a major problem, it just requires some touch ups, but I will arrange a quote from foundation repair company.
LP: $70,000
Rent: $850 / Month
Tax: $1,496 a year
Insurance: Approx. $700
Mgmt Fee: $918
NOI: $7,086
NOI Yield: 10.12%
The seller also has another 2 homes and will consider package deal at better rate.
Crime Rate: Lowest (No incidents last 30 days)
Thomas Su
Keller Williams Realty
2014-08-02 13.37.50
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