[SOLD] 8%+ Potential Yield in Rotorua

Additional Information

Two great easy-care properties that with a bit of a cosmetic makeover would be transformed into a desirable place to rent and with Rotorua's current rental shortage will be snapped up.

Both properties are constructed with fibrolite cladding, aluminium joinery and corrugated iron roofing. A paved driveway provides good access to both properties.

Both properties are fenced though this is of variable quality. The neighbouring properties at 32 Susan Street are of high quality.

Purchasing 2 homes on separate cross lease titles for under $200,000 each is an absolute bargain.

Here are some recent sales in the street:

• 1/17 50a Susan St- $235,000
• 6/16 50B Susan St- $235,000
• 2/17 51 Susan St- $238,000
• 6/17 34 Susan St- $270,000

Both properties are currently tenanted but are very tired. Both homes would be transformed with an interior repaint and new carpets and vinyl.

30A Susan Street:

The front property is a two bedroom house with open plan kitchen, dining and living area and heaps of potential to add value and rental yield. There is currently a non compliant wood burner that will be removed upon settlement and the addition of a new heat pump will add to the spaciousness of the lounge. A ranch slider onto the front deck allows for a good indoor/outdoor flow. The bathroom currently has a shower over a shub and there is a separate toilet and laundry. The floor under the shub is water damaged and the bathroom would benefit from the addition of a glass shower while the floor was being repaired to create a more modern bathroom area.

There is a small portion of kitchen floor that also needs repair.

The exterior cladding and roof are in reasonable condition although the back deck needs remedial repairs. There is also an attached carport and woodshed.

The current rental of $210 p/w which is well below market rent and is estimated to be $280 -$300 p/w if the property is freshened up with new carpet, paint, insulation and a heat pump.

30B Susan Street:

The back property is a group style three bedroom house and once again would be improved with a cosmetic renovation. The open plan dining / living area is compact and cosy.

The bathroom has a shower over the bath and there is a separate toilet and laundry. The bathroom is in need of a makeover with particle board trim around the window that needs replacing and the bath is old scratched & stained.

This house appears structurally in better condition than 30a Susan Street. But with a coat of paint, new carpets, vinyl this home would be transformed into a desirable rental home for one of the many people searching for a place to rent.

There is a single lockable garage. The exterior cladding and roof are in reasonable condition and the rear deck and front entrance are in reasonable condition.

The current rent of $220 p/w is well below market rate which is estimated to be $320 - $340 p/w if the property is freshened up as suggested above.

Estimated renovation costs for both properties: $33,000

Painting: $10,000

Carpets & Vinyl $9,000

Heat pumps: $5,000

Floor repairs: $1000

Bath: $700

Shower: $1500

Deck: $1000

Gardening: $500

Insulation: $4000 ( with CSC card tenant)

Front Fence upgrade: $1200

Amenities

Close proximity to all levels of schooling including Western Heights High School and John Paul College. Close to bus stop and shops. Park and playground directly across the road.