Six bedroom house, Wellston, USA

This fantastic very large four apartment multi family property is located in Wells-Goodfellow and is just seven minutes and three miles from Washington University St Louis. The building is split into four apartments. There are Two, one bedroom apartments that are both tenant occupied. The tenants are paying $400 in rent each month. The market rent for these apartments is nearer $500 – $550 so should a tenant leave the rent can be easily increased. The remaining two apartments are both two bedroom and are just being completely refurbished. The management company will place brand new tenants when the new owner closes on the property paying $650 – $700 in rent each month. The new tenants can either be private or Section 8, the decision will be down to the new owner.

The property is located in Wells-Goodfellow which is only 6.9 miles from Downtown Saint Louis.The Wells-Goodfellow neighbourhood in St. Louis is undergoing a much needed transformation as part of a new Blight Elimination project. the city is partnering with the new non-profit organisation to clear four city blocks of vacant homes. Wells-Goodfellow sits right next door to West End where similar projects have now rejuvenated the area with luxury properties now in abundance.

Investment Calculation

Purchase price: 119,900

Gross annual rental income: $26,400

Property running costs: $4,680
(Tax, insurance and management costs)

Net annual rental income: $21,720

Investment calculation - Net Income divided by Purchase price = NET ROI.

Return on investment: 19%

Break even in 5.26 Years