SFR Acquisition 2: 7764 P. Street; Tenant Agrees to A Rent Raise Post-Closing

Buy and Hold Opportunity

This is a 3 bed, 1 bath, brick construction currently rented.

Current Rent: $650/month

Tenant has agreed to increase the rent to $800 post-closing. She has lived in the property for over 10 years, providing stability, and is likely to remain long-term. This makes the property an attractive investment with consistent cash flow.

Property Details:

  • Acquisition Date: August 9, 2024
  • Acquisition Price: $55,000
  • Capital Expenditures (CapEx): minimal, currently rented
  • Comparables: up to $125,000
  • Renewed Rent: $800 per month

 

The strategy is simple;  for now. Purchase the property cash, perform some much-needed gutter work, and keep the tenant happy. Since the tenant wishes to stay long-term, renovations can be deferred until she chooses to leave.

Investors will see this strategy repeated in future acquisitions.

Rented single-family properties are often less desirable on the resale market, as most buyers seek homes for personal use. These for-investors-only properties typically sell at a discount, often accompanied by deferred maintenance and below-market rents.

The MTMA Team’s long-term investment approach turns these challenges into opportunities.

Over a five-year holding period, our partner property management team will proactively address maintenance issues and raise rents strategically.

While a few rented properties may not attract much interest, a portfolio of several hundred well-maintained properties with market-level rents will become highly appealing to institutional investors and conventional lenders.