This opportunity offers strong potential whether you're looking for long-term cash flow or a value-add flip.
As a rental, comparable properties support approximately $700/month in market rent (we're using a conservative estimate, with many similar homes renting for $750-$850/month). After taxes, insurance, and management, the property is projected to generate roughly $6,700 per year in cash flow, equating to an estimated 15% annual cash-on-cash return based on the purchase price and renovation costs. To achieve the higher end of market rents, converting the home into a 2-bedroom would likely be beneficial, as many of the strongest rental comps offer two bedrooms.
As a flip, comparable sales support an ARV of approximately $60,000. With the purchase price, renovation costs - including adding a second bedroom - and all anticipated project costs, the total investment is projected to remain under $40,000, leaving room for an estimated $20,000+ gross profit before selling expenses.
Whether you choose to hold or flip, this property offers a low entry price, multiple exit strategies, and strong upside relative to the total investment.
Important to Note: The figures above are based on our analysis of local comparable sales and rental data. As always, buyers should perform their own due diligence to verify all estimates, projections, and assumptions before purchasing.
