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Going to the courthouse steps next week for an auction for a foreclosure subject to all existing liens and taxes. Can some give me a primer in the potenial hidden costs?

Property taxes: I know last year's weren't paid and will have to be paid.

Liens: No liens for work done on the house. Can liens on a house originate from other sources?

IRS Back Taxes: Say an owner didn't pay their federal taxes, is there anyway the IRS can hold someone purchasing that person's property liability? Basically, do federal taxes liens exist?

Anything else?

 
One quick question that may or may not lead to others, depending on the answer.

I'm thinking of buying a duplex soon and pretty much have it narrowed down to two possible properties. However, I've never done this before and am basically clueless. But I'm also intelligent (seriously, no ####) and have people that can help out. Do I need an agent?

If the answer is "no" then I'll have some follow-up questions. :)

 
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One quick question that may or may not lead to others, depending on the answer.

I'm thinking of buying a duplex soon and pretty much have it narrowed down to two possible properties. However, I've never done this before and am basically clueless. But I'm also intelligent (seriously, no ####) and have people that can help out. Do I need an agent?

If the answer is "no" then I'll have some follow-up questions. :)
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I'm assuming you're going to try to negotiate down the asking price 3% to compensate for the fact that you don't have a realtor. If not, you might as well get an agent.If so, there's a couple things to consider. Are the two properties listed with agents? If so, they probably won't want to negotiate down the commission, as people who represent themselves are notorious pains in the behinds and often flake out and freak about stupid little things. Not saying you're going to, but I guarantee you that's what they're thinking.

If you get into a competitive situation, having the listing agent also represent you can be very, very powerful, as they've got a lot more incentive to make sure you get the property. Most likely they'll give you info they shouldn't as far as what the other offers look like and what you need to do to get yours accepted. Dishonest, but reality.

If the two properties aren't listed with agents, and they aren't planning on paying a fee to a buyer's agent, I'd go get myself the best lawyer I could and pay him whatever he wanted to represent me, advise me, and cover my butt. Don't try to do this on your own - lawyers are pretty cheap, I'd imagine you could get out for less than a grand.
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Thanks. I'd definitely use the no-agent thing as a negotiating point. That was kind of why I was thinking about doing it myself...never hurts to save a few grand. :)
 
Thanks. I'd definitely use the no-agent thing as a negotiating point. That was kind of why I was thinking about doing it myself...never hurts to save a few grand. :)
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Are the other properties listed? It'll hurt more than it helps in a lot of cases. . .
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Listed, but they've been up for a while. Isn't that a good thing?
 
Going to the courthouse steps next week for an auction for a foreclosure subject to all existing liens and taxes. Can some give me a primer in the potenial hidden costs?

Property taxes: I know last year's weren't paid and will have to be paid.

Liens: No liens for work done on the house. Can liens on a house originate from other sources?

IRS Back Taxes: Say an owner didn't pay their federal taxes, is there anyway the IRS can hold someone purchasing that person's property liability? Basically, do federal taxes liens exist?

Anything else?
Click to expand...
If you have one property (or a couple) go to a title company and have them check title. Go with them to the courthouse and learn how to do this yourself. That should tell you.All liens and judgments SUBORDINATE to the foreclosing note are WIPED OUT by the auction.

There is a pecking order:

IRS TAX LIEN

STATE / LOCAL TAX LIEN(S)

First mortgage

Second mortgage

Third....etc.

Judgments and Liens

So if a 1st forecloses, all but tax liens are gone.

If it is a second, you are buying the 2nd with the rights to bring the 1st current (it likely isn't). Keep that in mind when bidding.

I've heard this horror story.

House worth $250K.

First of $150K

Second foreclosing. Woman buys 2nd for $120K. Thinks she got a steal because she paid $120K. Oops. She owes 120 + 150K first. Not only that, but she overpaid by a ton (owes 120 and 150, or $270K on a $250K house). Bad news.

So you need to check the title.

Also learn the process for your state / county for foreclosures. Many auctions get cancelled / postponed at the last minute - sale, refi, litigation - whatever. Just happens.

Have the required funds available to bid. You MUST get that right.

Good luck and happy bidding.

 
One quick question that may or may not lead to others, depending on the answer.

I'm thinking of buying a duplex soon and pretty much have it narrowed down to two possible properties. However, I've never done this before and am basically clueless. But I'm also intelligent (seriously, no ####) and have people that can help out. Do I need an agent?

If the answer is "no" then I'll have some follow-up questions. :)
Click to expand...
I'm assuming you're going to try to negotiate down the asking price 3% to compensate for the fact that you don't have a realtor. If not, you might as well get an agent.If so, there's a couple things to consider. Are the two properties listed with agents? If so, they probably won't want to negotiate down the commission, as people who represent themselves are notorious pains in the behinds and often flake out and freak about stupid little things. Not saying you're going to, but I guarantee you that's what they're thinking.

If you get into a competitive situation, having the listing agent also represent you can be very, very powerful, as they've got a lot more incentive to make sure you get the property. Most likely they'll give you info they shouldn't as far as what the other offers look like and what you need to do to get yours accepted. Dishonest, but reality.
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:yes: I do this all the time. If I see a LISTED property, I call THAT AGENT. When they hear that they can get twice the commission, everything starts going in your favor. That agent wants YOU to buy not, not someone else, so they get

:moneybag: x 2.

That works far more often than not.

Pitfall - you better know what you're doing. Property value, eyeballing the place, everything you can. The agent won't necessarily help you much. They want the $$.

If the two properties aren't listed with agents, and they aren't planning on paying a fee to a buyer's agent, I'd go get myself the best lawyer I could and pay him whatever he wanted to represent me, advise me, and cover my butt. Don't try to do this on your own - lawyers are pretty cheap, I'd imagine you could get out for less than a grand.
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Also good advice.
 
One quick question that may or may not lead to others, depending on the answer.

I'm thinking of buying a duplex soon and pretty much have it narrowed down to two possible properties. However, I've never done this before and am basically clueless. But I'm also intelligent (seriously, no ####) and have people that can help out. Do I need an agent?

If the answer is "no" then I'll have some follow-up questions. :)
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Sorry, but intelligence has nothing to do with this. Familiarity with the process makes all the difference, from brainiacs to brainless people. Knowing how a property should be evaluated, valued, and purchased never gets done right coming out of the gate.Get an experienced person(s) on your side to help you. It could save you big headaches down the road.

Also, let us know about the deal. Rents? Size of the place? Asking price? Both sides rented today?

Finally - Columbus OH has a good RE club if I recall correctly. Google John Hyre.

 
Jeff and BnB... I really appreciated you going over my situation last night (buying new home and keep current home as a rental. We are under the 1% rule coming in at about .7% but we are in a slow market and would like to take the opportunity to move up in house.)

I am still lost on the tax consequences and don't want to keep pressing the issue here. I'm afraid the matter is in the same category as the "tuck" rule for me so I have woefully ignored it up to this point.

Is there a link that you could share that any caveman (yes, they still exist) could understand?

Things I need to learn:

1. Depreciation

2. Depreciation recapture if/when we sell

3. Will 100% of taxes and interest paid be able to be written off against income generated by the rents. (Believe it or not, we are not eligible to itemize- about $3,000 away from it).

Thanks a ton. PJ
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RANT... am I wrong here:We signed a contingent offer to buy a home. We used the selling agent. The sale was contingent on us selling our home. The agent is giving us 1% back for buying and listing our home with her.

We get an offer last night. Home was listed at $126K after lowing $2K for (hopefully) quick sale. Offer comes in at $126K with us covering $3500 closing costs for buyer. Possession at close.

We are selling this home fairly cheap... losing a bit to move up in lifestyle (about $7K after three years of ownership). However, our bottom line all along was $125,500. This $122,500 offer is obviously below this. I tell agent I want to counter to $128K and we pay the $3500 closing fees for buyers. She does everything in the book to try to get us to take the offer including showing how all fees to close will go up (turns out to be about $75) and trying to give us 1% rebate on our selling commissions (while neglecting to tell me that this would be taking place of the 1% she offered us on the home we are buying-- a net loss of $500 to us.)

So after telling her I was pissed that she is trying to talk her clients into an offer and telling her that she must think I am stupid to try the fuzzy math we tell her that we will think about it. I call her up 30 minutes later and tell her we need $2000 more from somewhere, preferably the folks buying our home.

The home that we are buying is vacant because a previous agent talked them into buying a condo before their home sold. After being listed for six months at $199K they went with our agent at $175K. We had agreed to pay $173K. These folks are bringing $15K to the table to get it closed.

After we call our agent to tell her we want to counter she calls up the folks on the home we are buying instead. She gets them to accept $171K instead of the $173K. So we get our $2000.

Now, I know $2000 is not much but we agreed to pay $3k more for home we are buying and lowered the price on our home $2K at their suggestion. My complaint is that I never felt that this agent was working for us and certainly wasn't working for the sellers on the home that we are buying.

Aren't agents "supposed" to work for sellers?

Was I out of line to try and counter on sale of our home?

There are probably only three comparable homes for sale in our town.. All are listed between $128K-135K. Ours ends up going for $122,500. We were happy to keep our existing home if the price wasn't right.

Rant over. Thanks for the thread.

 
Jeff and BnB... I really appreciated you going over my situation last night (buying new home and keep current home as a rental. We are under the 1% rule coming in at about .7% but we are in a slow market and would like to take the opportunity to move up in house.)

I am still lost on the tax consequences and don't want to keep pressing the issue here. I'm afraid the matter is in the same category as the "tuck" rule for me so I have woefully ignored it up to this point.

Is there a link that you could share that any caveman (yes, they still exist) could understand?

Things I need to learn:

1. Depreciation

2. Depreciation recapture if/when we sell

3. Will 100% of taxes and interest paid be able to be written off against income generated by the rents. (Believe it or not, we are not eligible to itemize- about $3,000 away from it).

Thanks a ton. PJ
Click to expand...
RANT... am I wrong here:We signed a contingent offer to buy a home. We used the selling agent. The sale was contingent on us selling our home. The agent is giving us 1% back for buying and listing our home with her.

We get an offer last night. Home was listed at $126K after lowing $2K for (hopefully) quick sale. Offer comes in at $126K with us covering $3500 closing costs for buyer. Possession at close.

We are selling this home fairly cheap... losing a bit to move up in lifestyle (about $7K after three years of ownership). However, our bottom line all along was $125,500. This $122,500 offer is obviously below this. I tell agent I want to counter to $128K and we pay the $3500 closing fees for buyers. She does everything in the book to try to get us to take the offer including showing how all fees to close will go up (turns out to be about $75) and trying to give us 1% rebate on our selling commissions (while neglecting to tell me that this would be taking place of the 1% she offered us on the home we are buying-- a net loss of $500 to us.)

So after telling her I was pissed that she is trying to talk her clients into an offer and telling her that she must think I am stupid to try the fuzzy math we tell her that we will think about it. I call her up 30 minutes later and tell her we need $2000 more from somewhere, preferably the folks buying our home.

The home that we are buying is vacant because a previous agent talked them into buying a condo before their home sold. After being listed for six months at $199K they went with our agent at $175K. We had agreed to pay $173K. These folks are bringing $15K to the table to get it closed.

After we call our agent to tell her we want to counter she calls up the folks on the home we are buying instead. She gets them to accept $171K instead of the $173K. So we get our $2000.

Now, I know $2000 is not much but we agreed to pay $3k more for home we are buying and lowered the price on our home $2K at their suggestion. My complaint is that I never felt that this agent was working for us and certainly wasn't working for the sellers on the home that we are buying.

Aren't agents "supposed" to work for sellers?

Was I out of line to try and counter on sale of our home?

There are probably only three comparable homes for sale in our town.. All are listed between $128K-135K. Ours ends up going for $122,500. We were happy to keep our existing home if the price wasn't right.

Rant over. Thanks for the thread.
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You tried to get the $$ you wanted to get.Issue is that, for many not in the industry, $1-5K is usually "chump change", especially for regular homes.

Paying an extra month's mortgage while owning 2 houses wipes out most of any $1-2K savings.

Time really does equal money.

So, the agent wanted her commissions, and was working to get all the deals done. She gets paid, you get your $$, and life goes on.

The issue was important to you, the agent saw that and put an actionable plan together and got everyone happy. GOOD AGENT.

Buy her a present. She got rid of a house for you at the price you want / need and got you your desired next home.

Enjoy your new situation, thank everyone involved, and give them a referral down the line. You'll likely use the agent again.

Congrats on the new home.

 
RANT... am I wrong here:

We signed a contingent offer to buy a home. We used the selling agent. The sale was contingent on us selling our home. The agent is giving us 1% back for buying and listing our home with her.

We get an offer last night. Home was listed at $126K after lowing $2K for (hopefully) quick sale. Offer comes in at $126K with us covering $3500 closing costs for buyer. Possession at close.

We are selling this home fairly cheap... losing a bit to move up in lifestyle (about $7K after three years of ownership). However, our bottom line all along was $125,500. This $122,500 offer is obviously below this. I tell agent I want to counter to $128K and we pay the $3500 closing fees for buyers. She does everything in the book to try to get us to take the offer including showing how all fees to close will go up (turns out to be about $75) and trying to give us 1% rebate on our selling commissions (while neglecting to tell me that this would be taking place of the 1% she offered us on the home we are buying-- a net loss of $500 to us.)

So after telling her I was pissed that she is trying to talk her clients into an offer and telling her that she must think I am stupid to try the fuzzy math we tell her that we will think about it. I call her up 30 minutes later and tell her we need $2000 more from somewhere, preferably the folks buying our home.

The home that we are buying is vacant because a previous agent talked them into buying a condo before their home sold. After being listed for six months at $199K they went with our agent at $175K. We had agreed to pay $173K. These folks are bringing $15K to the table to get it closed.

After we call our agent to tell her we want to counter she calls up the folks on the home we are buying instead. She gets them to accept $171K instead of the $173K. So we get our $2000.

Now, I know $2000 is not much but we agreed to pay $3k more for home we are buying and lowered the price on our home $2K at their suggestion. My complaint is that I never felt that this agent was working for us and certainly wasn't working for the sellers on the home that we are buying.

Aren't agents "supposed" to work for sellers?

Was I out of line to try and counter on sale of our home?

There are probably only three comparable homes for sale in our town.. All are listed between $128K-135K. Ours ends up going for $122,500. We were happy to keep our existing home if the price wasn't right.

Rant over. Thanks for the thread.
Click to expand...
Wow, a lot to address here...
My complaint is that I never felt that this agent was working for us and certainly wasn't working for the sellers on the home that we are buying.Aren't agents "supposed" to work for sellers? Under a dual agency situation, she shouldn't be working for anyone, just facilitating the sale. Not trying to be a smart ### here, but this is what happens when you try to save commission / get a rebate by buying thru the listing agent. The tradeoff for those extra bucks is going it alone.

Now let's analysis the results the agent got...

Sold the 175K home for 99% of list price.

Sold your home for 97% of the list price.

Got you a contract that basically held you dream home until your current home sold and promptly sold that home.

Yeah...it sucks that a shell game is going on. Agents do this to take to make it a winning situation for everyone and close sales. Sure you think the people buying your house should be paying more, but she got you the extra $. Obviously she went to the source she felt was the easiest to get to move to keep this daisy chain together.

Sounds like you're in a ####ty market. If there were only three comparables in town and your home was superior and priced the lowest, why didn't it sell before? If you think you're taking a beating, what about the people that wanted $200K. Sounds like you worked yourself a good deal on that end and have improved your basis position in the future by upgrading homes in a soft market.

I guess what I'm saying is to take the personalities and sales tactics out of this business decision. This stuff happens in the NFL all the time. Team drafts player and talks about how great they are, player gushes over how happy he is this team drafted him, they can't agree on terms, player holds out, both sides blame the other for being unreasonable, eventually the player signs and comes to camp, everyone is happy again. If you're satisfied with the end result then it's time to go to camp and be happy.

 
Jeff and BnB... I really appreciated you going over my situation last night (buying new home and keep current home as a rental.  We are under the 1% rule coming in at about .7% but we are in a slow market and would like to take the opportunity to move up in house.)

I am still lost on the tax consequences and don't want to keep pressing the issue here.  I'm afraid the matter is in the same category as the "tuck" rule for me so I have woefully ignored it up to this point. 

Is there a link that you could share that any caveman (yes, they still exist) could understand?

Things I need to learn:

1. Depreciation

2. Depreciation recapture if/when we sell

3. Will 100% of taxes and interest paid be able to be written off against income generated by the rents. (Believe it or not, we are not eligible to itemize- about $3,000 away from it).

Thanks a ton.  PJ
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RANT... am I wrong here:We signed a contingent offer to buy a home. We used the selling agent. The sale was contingent on us selling our home. The agent is giving us 1% back for buying and listing our home with her.

We get an offer last night. Home was listed at $126K after lowing $2K for (hopefully) quick sale. Offer comes in at $126K with us covering $3500 closing costs for buyer. Possession at close.

We are selling this home fairly cheap... losing a bit to move up in lifestyle (about $7K after three years of ownership). However, our bottom line all along was $125,500. This $122,500 offer is obviously below this. I tell agent I want to counter to $128K and we pay the $3500 closing fees for buyers. She does everything in the book to try to get us to take the offer including showing how all fees to close will go up (turns out to be about $75) and trying to give us 1% rebate on our selling commissions (while neglecting to tell me that this would be taking place of the 1% she offered us on the home we are buying-- a net loss of $500 to us.)

So after telling her I was pissed that she is trying to talk her clients into an offer and telling her that she must think I am stupid to try the fuzzy math we tell her that we will think about it. I call her up 30 minutes later and tell her we need $2000 more from somewhere, preferably the folks buying our home.

The home that we are buying is vacant because a previous agent talked them into buying a condo before their home sold. After being listed for six months at $199K they went with our agent at $175K. We had agreed to pay $173K. These folks are bringing $15K to the table to get it closed.

After we call our agent to tell her we want to counter she calls up the folks on the home we are buying instead. She gets them to accept $171K instead of the $173K. So we get our $2000.

Now, I know $2000 is not much but we agreed to pay $3k more for home we are buying and lowered the price on our home $2K at their suggestion. My complaint is that I never felt that this agent was working for us and certainly wasn't working for the sellers on the home that we are buying.

Aren't agents "supposed" to work for sellers?

Was I out of line to try and counter on sale of our home?

There are probably only three comparable homes for sale in our town.. All are listed between $128K-135K. Ours ends up going for $122,500. We were happy to keep our existing home if the price wasn't right.

Rant over. Thanks for the thread.
Click to expand...
You tried to get the $$ you wanted to get.Issue is that, for many not in the industry, $1-5K is usually "chump change", especially for regular homes.

Paying an extra month's mortgage while owning 2 houses wipes out most of any $1-2K savings.

Time really does equal money.

So, the agent wanted her commissions, and was working to get all the deals done. She gets paid, you get your $$, and life goes on.

The issue was important to you, the agent saw that and put an actionable plan together and got everyone happy. GOOD AGENT.

Buy her a present. She got rid of a house for you at the price you want / need and got you your desired next home.

Enjoy your new situation, thank everyone involved, and give them a referral down the line. You'll likely use the agent again.

Congrats on the new home.
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Interesting that the reply was basically the same from an insider and outsider.
 
Thanks for the feedback. It helps me move forward and enjoy the remainder of the process. Both homes are going to have possession given at close. Any insight on how to close and move on the same day? Tips or tricks would be appreciated.

 
Thanks for the feedback. It helps me move forward and enjoy the remainder of the process. Both homes are going to have possession given at close. Any insight on how to close and move on the same day? Tips or tricks would be appreciated.
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Ask for a 1 day rentback, $50 a day or something.Typical.

Otherwise, hire a moving company, they will pack all your stuff in a truck the day before, go spend a nice night in a hotel for 1 day, have them move you in the next day.

Slight $$ and pain, but whatcha gonna do.

 
Thanks.  I'd definitely use the no-agent thing as a negotiating point.  That was kind of why I was thinking about doing it myself...never hurts to save a few grand.  :)
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Are the other properties listed? It'll hurt more than it helps in a lot of cases. . .
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This is correct, and/or you find yourself falling into a spot where the listing agent is representing you. Not a good spot to be in for the first/one time buyer.
 
Thanks.  I'd definitely use the no-agent thing as a negotiating point.  That was kind of why I was thinking about doing it myself...never hurts to save a few grand.   :)
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Are the other properties listed? It'll hurt more than it helps in a lot of cases. . .
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This is correct, and/or you find yourself falling into a spot where the listing agent is representing you. Not a good spot to be in for the first/one time buyer.
Click to expand...
How's the Real Estate market in Baltimore?
 
Thanks.  I'd definitely use the no-agent thing as a negotiating point.  That was kind of why I was thinking about doing it myself...never hurts to save a few grand.   :)
Click to expand...
Are the other properties listed? It'll hurt more than it helps in a lot of cases. . .
Click to expand...
This is correct, and/or you find yourself falling into a spot where the listing agent is representing you. Not a good spot to be in for the first/one time buyer.
Click to expand...
How's the Real Estate market in Baltimore?
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I couldn't begin to tell you, you would have to ask Jeff. At best I could do the Great Lakes, but Really NW Ohio/NE Indiana/Southern Michigan.
 
Well the rehab project is getting close. We now have a working crapper. Thank goodness the plumbing hasn't backed up. Any suggestions for helping the septic system along? Had a major setback this week otherwise we'd be done. Contractor said the original wiring looked good. Drywall up and there's a short. Replace all the switches and plugs to no avail. Rewired the whole freaking house. Not to major of a deal as we had to deal with my lack of planning (range hood, sink link, counter plug) any way. Cabinets look great, floor is being refinished. Final touch ups should go down this week. No ideal how much I'm into this for...afraid to add it up. If I can host pics, I'll share them later. Overall satisfied with the work.

 
Thanks. I'd definitely use the no-agent thing as a negotiating point. That was kind of why I was thinking about doing it myself...never hurts to save a few grand. :)
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Are the other properties listed? It'll hurt more than it helps in a lot of cases. . .
Click to expand...
This is correct, and/or you find yourself falling into a spot where the listing agent is representing you. Not a good spot to be in for the first/one time buyer.
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How's the Real Estate market in Baltimore?
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Depends on the neighborhood of course, but in general still rather hot.Prices continue to rise as Spring starts to break and the rumors of a levelling off seem to be untrue.

If you have further questions about certain spots / neighborhoods, let me know.

 
I had one recently where the seller wanted $280K. I ran the numbers using THEIR FIGURES.

With 10% down, 20 year commercial loan at 7.75, the property FULLY RENTED OUT, LOST $592.17 a MONTH!!!

The seller claimed that the property tax value was over $300K. Researching it, found out that it has an actual tax value of $230K.

Got this all together, and submitted an offer of $175K ($105K off) and showed that at that figure the property made $40.00 a MONTH fully rented out USING THEIR FIGURES. Also included the ACTUAL tax value with the comments that no one can buy this property at the asking price.

The counter back was full asking price with the comment that I could just buy it in cash, and make plenty of money on it. :loco:

 
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I tried searching this thread and either missed the discussion of this or it hasn't been addressed here, or maybe this is the wrong thread altogether, but I was wondering if any of you knew roughly how much "more" house one could buy if they finance an "interest only" loan. We'd like to stay in the immediate area but probably wouldn't be able to afford much more house with another conventional loan. TIA...

 
I tried searching this thread and either missed the discussion of this or it hasn't been addressed here, or maybe this is the wrong thread altogether, but I was wondering if any of you knew roughly how much "more" house one could buy if they finance an "interest only" loan.  We'd like to stay in the immediate area but probably wouldn't be able to afford much more house with another conventional loan.  TIA...
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Depends on how much house you're buying. You can go here and run some exact numbers for yourself.
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Such rapid service. You da man... :thumbup:
 
I tried searching this thread and either missed the discussion of this or it hasn't been addressed here, or maybe this is the wrong thread altogether, but I was wondering if any of you knew roughly how much "more" house one could buy if they finance an "interest only" loan. We'd like to stay in the immediate area but probably wouldn't be able to afford much more house with another conventional loan. TIA...
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Depends on how much house you're buying. You can go here and run some exact numbers for yourself.
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Such rapid service. You da man... :thumbup:
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Guys like Mike and proninja make this thread the success it is. Props to both of you :thumbup:
 
Let me just say how much I love real estate. :banned:

Just signed a contract on my place that I didn't really want to sell. Don't know where I'll be moving to...I guess I'll put my #### in storage and live in someone's garage for a while. Both girlfriends offered me tempory living, but I doubt they'd appreciate the company I keep. :cry: Just a little overwhelmed right now with everything moving so fast.

 
Let me just say how much I love real estate. :banned:

Just signed a contract on my place that I didn't really want to sell. Don't know where I'll be moving to...I guess I'll put my #### in storage and live in someone's garage for a while. Both girlfriends offered me tempory living, but I doubt they'd appreciate the company I keep. :cry: Just a little overwhelmed right now with everything moving so fast.
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Congrats, I think.Everything has a price in real estate. When someone says that the place "isn't for sale" - that isn't really the truth. Every property as a price - just a matter if someone is willing to pay for what the owner wants for it.

We drove by one of our rehab properties in Baltimore this week and someone asked if we had anything for sale. The answer used to be "No" when we had nothing ready to sell, now it is "what are you looking for" and we never say "No" as a first answer.

That's a good rule in general - even if you have no thoughts about doing something, if faced with options, explore them. You just never know what will come of it.

 
Jeff,

I think I've said before, but this is a great thread.

I know you do rehabs, and I was just wondering what the price range for various aspects of a rehab might be. I live in the DC area, and am considering buying something that still needs some work as my next residence. Kind of a live there and fix certain things up over time type of thing. Anyways, if you could give a rough estimate of what it costs to do these things, that would be great.

-Remodel Kitchen

-Hardwood floors

-Remodel Bathroom

-Finish Basement

-Install Centeral Air

-ETA- It might be useful to look get estimates for what it would cost to simply modernize these things, and another for what it would cost to totally "pimp" these things.

 
Last edited by a moderator:
Jeff,

I think I've said before, but this is a great thread.

I know you do rehabs, and I was just wondering what the price range for various aspects of a rehab might be. I live in the DC area, and am considering buying something that still needs some work as my next residence. Kind of a live there and fix certain things up over time type of thing. Anyways, if you could give a rough estimate of what it costs to do these things, that would be great.

-Remodel Kitchen

-Hardwood floors

-Remodel Bathroom

-Finish Basement

-Install Centeral Air

-ETA- It might be useful to look get estimates for what it would cost to simply modernize these things, and another for what it would cost to totally "pimp" these things.
Click to expand...
Jeff?
 
Jeff,

I think I've said before, but this is a great thread.

I know you do rehabs, and I was just wondering what the price range for various aspects of a rehab might be. I live in the DC area, and am considering buying something that still needs some work as my next residence. Kind of a live there and fix certain things up over time type of thing. Anyways, if you could give a rough estimate of what it costs to do these things, that would be great.

-Remodel Kitchen

-Hardwood floors

-Remodel Bathroom

-Finish Basement

-Install Centeral Air

-ETA- It might be useful to look get estimates for what it would cost to simply modernize these things, and another for what it would cost to totally "pimp" these things.
Click to expand...
Jeff?
Click to expand...
Easy guy - it appears I live here, but I'm only here about 20 of my 24 waking hours ;) .Those questions are vague, sorry. The best way to learn would actually be to walk in to Lowes or Home Depot and ask what X would cost installed. Sounds stupid, but really simplifies things.

Now that isn't what you'd necessarily expect to pay, but that's a good start.

I will give you some things I know off the cuff:

-HVAC (Central air / heat) - One zone, normal system - $5-7K.

-Remodel Kitchen - Easily one of the most expensive things around. State of the art can go over $25K, but can be done for about $10K (well). Cabinets are about $150 each and $100 installed each.

-Hardwood floors - Home Depot / Lowes special. $5 a sq.ft. installed, roughly.

-Remodel Bathroom - 1/2 bath is about $2500. Full bath $5-8K.

Finish Basement - Easily overpriced. EASILY. Finishing means so many things. Insulation / wallboard, carpet paint? About $25 a sq. foot is a reasonable budget. Might be $30, but really what are you really doing to finish it?

These numbers are rough and I welcome anyone else's comments, but that's from memory.

-Jeff

 
Jeff,

I think I've said before, but this is a great thread.

I know you do rehabs, and I was just wondering what the price range for various aspects of a rehab might be. I live in the DC area, and am considering buying something that still needs some work as my next residence. Kind of a live there and fix certain things up over time type of thing. Anyways, if you could give a rough estimate of what it costs to do these things, that would be great.

-Remodel Kitchen

-Hardwood floors

-Remodel Bathroom

-Finish Basement

-Install Centeral Air

-ETA- It might be useful to look get estimates for what it would cost to simply modernize these things, and another for what it would cost to totally "pimp" these things.
Click to expand...
Jeff?
Click to expand...
Hope that helps. P.S. Link to 2nd chance AI draft? Wondering how I'm doing :bag:

 
Jeff,

I think I've said before, but this is a great thread.

I know you do rehabs, and I was just wondering what the price range for various aspects of a rehab might be.  I live in the DC area, and am considering buying something that still needs some work as my next residence.  Kind of a live there and fix certain things up over time type of thing.  Anyways, if you could give a rough estimate of what it costs to do these things, that would be great.

-Remodel Kitchen

-Hardwood floors

-Remodel Bathroom

-Finish Basement

-Install Centeral Air

-ETA- It might be useful to look get estimates for what it would cost to simply modernize these things, and another for what it would cost to totally "pimp" these things.
Click to expand...
Jeff?
Click to expand...
Hope that helps. P.S. Link to 2nd chance AI draft? Wondering how I'm doing :bag:
Click to expand...
Thanks man.Should've master indexed that thread. It would've been an abuse of power though, since its under 250 posts.

I'll update it Thursday morning after the next cut.

 
I will give you some things I know off the cuff:

-HVAC (Central air / heat) - One zone, normal system - $5-7K.

-Remodel Kitchen - Easily one of the most expensive things around. State of the art can go over $25K, but can be done for about $10K (well). Cabinets are about $150 each and $100 installed each.

-Hardwood floors - Home Depot / Lowes special. $5 a sq.ft. installed, roughly.

-Remodel Bathroom - 1/2 bath is about $2500. Full bath $5-8K.

Finish Basement - Easily overpriced. EASILY. Finishing means so many things. Insulation / wallboard, carpet paint? About $25 a sq. foot is a reasonable budget. Might be $30, but really what are you really doing to finish it?

These numbers are rough and I welcome anyone else's comments, but that's from memory.

-Jeff
Click to expand...
These things are a lot less expensive than I anticipated they would be.I think this pushes me over the edge. I've been going back and forth between getting a new condo in the city, or rehabing an old townhome in either Columbia Heights or Capitol Hill. I'm leaning rehab at this point.

I've got a while to think about it, I'm not moving until Nov/Dec.

 
I will give you some things I know off the cuff:

-HVAC (Central air / heat) - One zone, normal system - $5-7K.

-Remodel Kitchen - Easily one of the most expensive things around. State of the art can go over $25K, but can be done for about $10K (well). Cabinets are about $150 each and $100 installed each.

-Hardwood floors - Home Depot / Lowes special. $5 a sq.ft. installed, roughly.

-Remodel Bathroom - 1/2 bath is about $2500. Full bath $5-8K.

Finish Basement - Easily overpriced. EASILY. Finishing means so many things. Insulation / wallboard, carpet paint? About $25 a sq. foot is a reasonable budget. Might be $30, but really what are you really doing to finish it?

These numbers are rough and I welcome anyone else's comments, but that's from memory.

-Jeff
Click to expand...
These things are a lot less expensive than I anticipated they would be.I think this pushes me over the edge. I've been going back and forth between getting a new condo in the city, or rehabing an old townhome in either Columbia Heights or Capitol Hill. I'm leaning rehab at this point.

I've got a while to think about it, I'm not moving until Nov/Dec.
Click to expand...
That's why rehabbers make the money that they do. Common misconceptions of what things cost.You can spend a ton on repairs - all depends on what your target market is on the back end. You MUST make a property look like a $500K house if you intend to sell it for $500K (granite countertops, hardwood, tray ceilings, chair rails, crown moulding, stainless appliances, etc.).

If you're rehabbing a low end unit or rental - cheapo away.

Regarding your lack of sticker shock:

Get some quotes and talk to contractors in the meantime. Managing contractors will be your biggest headache, by far.

At first you think it is finding properties / deals. Then you find them.

Next comes financing / money for them. Then you find that.

Now you have to get the work done. That takes the longest time and most effort.

Good luck, enjoy the thread, and you know where to find me. :)

 
Jeff,

I think I've said before, but this is a great thread.

I know you do rehabs, and I was just wondering what the price range for various aspects of a rehab might be. I live in the DC area, and am considering buying something that still needs some work as my next residence. Kind of a live there and fix certain things up over time type of thing. Anyways, if you could give a rough estimate of what it costs to do these things, that would be great.

-Remodel Kitchen

-Hardwood floors

-Remodel Bathroom

-Finish Basement

-Install Centeral Air

-ETA- It might be useful to look get estimates for what it would cost to simply modernize these things, and another for what it would cost to totally "pimp" these things.
Click to expand...
Jeff?
Click to expand...
Hope that helps. P.S. Link to 2nd chance AI draft? Wondering how I'm doing :bag:
Click to expand...
Thanks man.Should've master indexed that thread. It would've been an abuse of power though, since its under 250 posts.

I'll update it Thursday morning after the next cut.
Click to expand...
Yeah I hear you (and glad you appreciate the index), but it also isn't "timeless", which was another criteria.
 
Jeff,

I think I've said before, but this is a great thread.

I know you do rehabs, and I was just wondering what the price range for various aspects of a rehab might be.  I live in the DC area, and am considering buying something that still needs some work as my next residence.  Kind of a live there and fix certain things up over time type of thing.  Anyways, if you could give a rough estimate of what it costs to do these things, that would be great.

-Remodel Kitchen

-Hardwood floors

-Remodel Bathroom

-Finish Basement

-Install Centeral Air

-ETA- It might be useful to look get estimates for what it would cost to simply modernize these things, and another for what it would cost to totally "pimp" these things.
Click to expand...
Jeff?
Click to expand...
Easy guy - it appears I live here, but I'm only here about 20 of my 24 waking hours ;) .Those questions are vague, sorry. The best way to learn would actually be to walk in to Lowes or Home Depot and ask what X would cost installed. Sounds stupid, but really simplifies things.

Now that isn't what you'd necessarily expect to pay, but that's a good start.

I will give you some things I know off the cuff:

-HVAC (Central air / heat) - One zone, normal system - $5-7K.

-Remodel Kitchen - Easily one of the most expensive things around. State of the art can go over $25K, but can be done for about $10K (well). Cabinets are about $150 each and $100 installed each.

-Hardwood floors - Home Depot / Lowes special. $5 a sq.ft. installed, roughly.

-Remodel Bathroom - 1/2 bath is about $2500. Full bath $5-8K.

Finish Basement - Easily overpriced. EASILY. Finishing means so many things. Insulation / wallboard, carpet paint? About $25 a sq. foot is a reasonable budget. Might be $30, but really what are you really doing to finish it?

These numbers are rough and I welcome anyone else's comments, but that's from memory.

-Jeff
Click to expand...
Just did a new HVAC system for 1000 sf at $4000.Basically gutted the same 1000 sf (one bath) and started from scratched for about 25K.

Home Depot is the king for cabinet design. They have some killer cabinets that you have to assemble at a great price. FYI...do this before you run the electrical outlets...doh!

Hardwoods run $4 sf out of the box. Installation another $2.5 a sf. Where they get you is the molding and thresholds which you need to throw on top of the numbers above. Most of that stuff runs $2 a linear foot.

Basement costs look dead on.

 
Jeff,

I think I've said before, but this is a great thread.

I know you do rehabs, and I was just wondering what the price range for various aspects of a rehab might be. I live in the DC area, and am considering buying something that still needs some work as my next residence. Kind of a live there and fix certain things up over time type of thing. Anyways, if you could give a rough estimate of what it costs to do these things, that would be great.

-Remodel Kitchen

-Hardwood floors

-Remodel Bathroom

-Finish Basement

-Install Centeral Air

-ETA- It might be useful to look get estimates for what it would cost to simply modernize these things, and another for what it would cost to totally "pimp" these things.
Click to expand...
Jeff?
Click to expand...
Easy guy - it appears I live here, but I'm only here about 20 of my 24 waking hours ;) .Those questions are vague, sorry. The best way to learn would actually be to walk in to Lowes or Home Depot and ask what X would cost installed. Sounds stupid, but really simplifies things.

Now that isn't what you'd necessarily expect to pay, but that's a good start.

I will give you some things I know off the cuff:

-HVAC (Central air / heat) - One zone, normal system - $5-7K.

-Remodel Kitchen - Easily one of the most expensive things around. State of the art can go over $25K, but can be done for about $10K (well). Cabinets are about $150 each and $100 installed each.

-Hardwood floors - Home Depot / Lowes special. $5 a sq.ft. installed, roughly.

-Remodel Bathroom - 1/2 bath is about $2500. Full bath $5-8K.

Finish Basement - Easily overpriced. EASILY. Finishing means so many things. Insulation / wallboard, carpet paint? About $25 a sq. foot is a reasonable budget. Might be $30, but really what are you really doing to finish it?

These numbers are rough and I welcome anyone else's comments, but that's from memory.

-Jeff
Click to expand...
Just did a new HVAC system for 1000 sf at $4000.Basically gutted the same 1000 sf (one bath) and started from scratched for about 25K.

Home Depot is the king for cabinet design. They have some killer cabinets that you have to assemble at a great price. FYI...do this before you run the electrical outlets...doh!

Hardwoods run $4 sf out of the box. Installation another $2.5 a sf. Where they get you is the molding and thresholds which you need to throw on top of the numbers above. Most of that stuff runs $2 a linear foot.

Basement costs look dead on.
Click to expand...
Thanks for the sanity check.I often speak in more grandiose numbers as I do complete rehabs mostly now, so I'm speaking in the $60-90 a sq.ft. for a guesstimate on a place. Then I bury down in the detail numbers.

 
Has anybody ever attended one of those free seminars on how to make money in real estate? They say they teach you way more than the common buy low sell high. I figured i may go since it is for free. Is it a scam to get you on a mailing list? :rant:

 
Jeff, what is good way to learn a solid base for doing real estate investing as a career. Any course, books or websites where I can just immerse myself into this.

I have looked into buying a duplex. But I got cold feet right before the purchase because the bank "forgot" a $1200 fee and added it at the last minute. So I bawked on that. Not sure if I want to be a landlord anyway, just too much BS.

So I purchased a book on getting into the mobile home business. The downside is much smaller with the profit margin staying close. I can invest about $3-4k on a mobile home, do a little bit of repairs and sell it for probably $10k on a note. I target 1 year as my payback period.

With selling it on a note, I am not a landlord, but a lien holder and they are on their own as far as repairs go. This nets me about $200 per month each.

But I want to do more. I want to get into "flipping" homes and the paper side of the business. Any good resources out there. I am in rural upper Michigan and we never had the inflation of home prices here that many areas saw. Just didn't happen here.

Any input would be appreciated. Buying a home for $80,000 and expecting it to appreciate to $150,000 just isn't going to happen here without a ton of remodelling. But I'd like to see if you know any angles I could take to make my niche without having to uproot my family.

What should I be doing?

 
Has anybody ever attended one of those free seminars on how to make money in real estate? They say they teach you way more than the common buy low sell high. I figured i may go since it is for free. Is it a scam to get you on a mailing list? :rant:
Click to expand...
Short answer? Usually.The problem with investors giving out statements about the gurus is slander / legal issues. If there is one thing that the gurus know, it is the phone number of their attorney.

You can PM me with the info of who's giving you the seminar and I can give MY opinion. Take it for what it is worth.

Understand something - there is no "Free seminar". Each seminar is orchestrated and calculated to get you to buy their stuff or come back for the 3 day seminar or paid program or sign up for their materials, etc.

The best way to learn is to find a local RE club and go there. Ask questions and leave your checkbook in the car. $20 or so should get you in the meeting (more if dinner is served) and you can find out more from people who do this for a living.

Keep in mind many people at these meetings are Noobs too, so seek out experts / vets and talk to at least 5. Get cards and numbers and names.

Good luck to you.

Helpful links:

RE Clubs:

REI Clubs

CRE Online - RE Clubs

Note - CRE Online is a FANTASTIC site.

Other opinions on gurus:

John T Reed

"Gurus to Avoid"

 
Jeff, what is good way to learn a solid base for doing real estate investing as a career. Any course, books or websites where I can just immerse myself into this.

I have looked into buying a duplex. But I got cold feet right before the purchase because the bank "forgot" a $1200 fee and added it at the last minute. So I bawked on that. Not sure if I want to be a landlord anyway, just too much BS.

So I purchased a book on getting into the mobile home business. The downside is much smaller with the profit margin staying close. I can invest about $3-4k on a mobile home, do a little bit of repairs and sell it for probably $10k on a note. I target 1 year as my payback period.

With selling it on a note, I am not a landlord, but a lien holder and they are on their own as far as repairs go. This nets me about $200 per month each.

But I want to do more. I want to get into "flipping" homes and the paper side of the business. Any good resources out there. I am in rural upper Michigan and we never had the inflation of home prices here that many areas saw. Just didn't happen here.

Any input would be appreciated. Buying a home for $80,000 and expecting it to appreciate to $150,000 just isn't going to happen here without a ton of remodelling. But I'd like to see if you know any angles I could take to make my niche without having to uproot my family.

What should I be doing?
Click to expand...
First off, nice start. I'd guess 80% never get off their butts and do anything, so I commend you.Second - mobile homes. Nice niche. So is paper. For someone new, you know two niches MANY don't. Most know "Buy a house, fix it up, rent/lease/sell it." As a result your are in markets few play in, which is a benefit to you.

Paper is great. You can even "middle" or "broker" paper, making $$ in between a buyer who wants a 12% rate of return and a seller who wants cash but is willing to sell at 20+% yield.

The best site I've ever found is CREonline.com. Not an endorsement of any kind, but they have quality info and people, and I've met and talked to virtually every big name on the site.

As for mobile homes - THE name is Lonnie Scruggs. Even has the phrase "Lonnie Deal" named after him. You can find both of his books on CREonline for under $200 total I think, and I bet you'd love every page. (I have NOT read them but many tell me it is the best). I'm just not in that market.

Paper - "Turning Paper Into Gold" by Terry Vaughn is there. That's a great read (and if you can't figure out a financial calculator, learn).

Hope that helps.

Good place for a disclaimer - I'm not affiliated with anyone, anything, or any site (other than FBG of course) regarding Real Estate info or courses. Buyer beware. Contact Major League Baseball for expressed written consent. Do not taunt Happy Fun Ball.

 
Hey Jeff,

I am looking at condos in Orange Beach or Gulf Shores AL. Do you have any idea of the rental market there?

The home I live in now is worth 350-400K and is paid for. Would this be a good investment?

 
Last edited by a moderator:
Hey Jeff,

I am looking at condos in Orange Beach or Gulf Shores AL. Do you have any idea of the rental market there?

The home I live in now is worth 350-400K and is paid for. Would this be a good investment?
Click to expand...
I don't know these markets and don't want to lead you astray. Sorry.I do know that "warm and wet" markets are booms long term, as more people are heading in that direction. But your state abbreviation is AL not FL, so that hurts.

The home I live in now is worth 350-400K and is paid for. Would this be a good investment?
Click to expand...
:confused:
 
Jeff, what is good way to learn a solid base for doing real estate investing as a career.  Any course, books or websites where I can just immerse myself into this.

I have looked into buying a duplex.  But I got cold feet right before the purchase because the bank "forgot" a $1200 fee and added it at the last minute.  So I bawked on that.  Not sure if I want to be a landlord anyway, just too much BS.

So I purchased a book on getting into the mobile home business.  The downside is much smaller with the profit margin staying close.  I can invest about $3-4k on a mobile home, do a little bit of repairs and sell it for probably $10k on a note.  I target 1 year as my payback period. 

With selling it on a note, I am not a landlord, but a lien holder and they are on their own as far as repairs go.  This nets me about $200 per month each.

But I want to do more.  I want to get into "flipping" homes and the paper side of the business.  Any good resources out there.  I am in rural upper Michigan and we never had the inflation of home prices here that many areas saw.  Just didn't happen here. 

Any input would be appreciated.  Buying a home for $80,000 and expecting it to appreciate to $150,000 just isn't going to happen here without a ton of remodelling.  But I'd like to see if you know any angles I could take to make my niche without having to uproot my family.

What should I be doing?
Click to expand...
First off, nice start. I'd guess 80% never get off their butts and do anything, so I commend you.Second - mobile homes. Nice niche. So is paper. For someone new, you know two niches MANY don't. Most know "Buy a house, fix it up, rent/lease/sell it." As a result your are in markets few play in, which is a benefit to you.

Paper is great. You can even "middle" or "broker" paper, making $$ in between a buyer who wants a 12% rate of return and a seller who wants cash but is willing to sell at 20+% yield.

The best site I've ever found is CREonline.com. Not an endorsement of any kind, but they have quality info and people, and I've met and talked to virtually every big name on the site.

As for mobile homes - THE name is Lonnie Scruggs. Even has the phrase "Lonnie Deal" named after him. You can find both of his books on CREonline for under $200 total I think, and I bet you'd love every page. (I have NOT read them but many tell me it is the best). I'm just not in that market.

Paper - "Turning Paper Into Gold" by Terry Vaughn is there. That's a great read (and if you can't figure out a financial calculator, learn).

Hope that helps.

Good place for a disclaimer - I'm not affiliated with anyone, anything, or any site (other than FBG of course) regarding Real Estate info or courses. Buyer beware. Contact Major League Baseball for expressed written consent. Do not taunt Happy Fun Ball.
Click to expand...
Read the Scruggs books already and I mostly lurk on the CRE boards over there. Might have to check out that Paper book too. Thanks for the input. I am planning on getting that income rolling in from about 6-10 mobiles and then trying to hit more of a "home run" on a house once I can cover my bills on the mobile income. Hopefully I can net enough cash between the two to take a plunge into this full time. It's just so much more interesting to me than computer geeking is.Great thread!

 
Hey Jeff,

I am looking at condos in Orange Beach or Gulf Shores AL.  Do you have any idea of the rental market there?

The home I live in now is worth 350-400K and is paid for.  Would this be a good investment?
Click to expand...
I don't know these markets and don't want to lead you astray. Sorry.I do know that "warm and wet" markets are booms long term, as more people are heading in that direction. But your state abbreviation is AL not FL, so that hurts.

The home I live in now is worth 350-400K and is paid for.  Would this be a good investment?
Click to expand...
:confused:
Click to expand...
Orange Beach is on the Florida -Alabama border.http://www.orangebeachcondo.com/silverbeac.../condo/dock.jpg

 
Hey Jeff,

I am looking at condos in Orange Beach or Gulf Shores AL. Do you have any idea of the rental market there?

The home I live in now is worth 350-400K and is paid for. Would this be a good investment?
Click to expand...
I don't know these markets and don't want to lead you astray. Sorry.I do know that "warm and wet" markets are booms long term, as more people are heading in that direction. But your state abbreviation is AL not FL, so that hurts.

The home I live in now is worth 350-400K and is paid for. Would this be a good investment?
Click to expand...
:confused:
Click to expand...
Orange Beach is on the Florida -Alabama border.http://www.orangebeachcondo.com/silverbeac.../condo/dock.jpg
Click to expand...
The home I live in now is worth 350-400K and is paid for. Would this be a good investment?
Click to expand...
I don't understand the question.The house is paid for. What's the investment? Please rephrase.

 
Read the Scruggs books already and I mostly lurk on the CRE boards over there. Might have to check out that Paper book too. Thanks for the input. I am planning on getting that income rolling in from about 6-10 mobiles and then trying to hit more of a "home run" on a house once I can cover my bills on the mobile income. Hopefully I can net enough cash between the two to take a plunge into this full time. It's just so much more interesting to me than computer geeking is.

Great thread!
Click to expand...
Thanks. Your questions make it happen.
 
Hey Jeff,

I am looking at condos in Orange Beach or Gulf Shores AL.  Do you have any idea of the rental market there?

The home I live in now is worth 350-400K and is paid for.  Would this be a good investment?
Click to expand...
I don't know these markets and don't want to lead you astray. Sorry.I do know that "warm and wet" markets are booms long term, as more people are heading in that direction. But your state abbreviation is AL not FL, so that hurts.

The home I live in now is worth 350-400K and is paid for.  Would this be a good investment?
Click to expand...
:confused:
Click to expand...
Orange Beach is on the Florida -Alabama border.http://www.orangebeachcondo.com/silverbeac.../condo/dock.jpg
Click to expand...
The home I live in now is worth 350-400K and is paid for.  Would this be a good investment?
Click to expand...
I don't understand the question.The house is paid for. What's the investment? Please rephrase.
Click to expand...
My home that I live in is paid for, so I am looking for another home as a investment since I have the cash that I am not putting into my own mortgage to invest.
 
Hey Jeff,

I am looking at condos in Orange Beach or Gulf Shores AL. Do you have any idea of the rental market there?

The home I live in now is worth 350-400K and is paid for. Would this be a good investment?
Click to expand...
I don't know these markets and don't want to lead you astray. Sorry.I do know that "warm and wet" markets are booms long term, as more people are heading in that direction. But your state abbreviation is AL not FL, so that hurts.

The home I live in now is worth 350-400K and is paid for. Would this be a good investment?
Click to expand...
:confused:
Click to expand...
Orange Beach is on the Florida -Alabama border.http://www.orangebeachcondo.com/silverbeac.../condo/dock.jpg
Click to expand...
The home I live in now is worth 350-400K and is paid for. Would this be a good investment?
Click to expand...
I don't understand the question.The house is paid for. What's the investment? Please rephrase.
Click to expand...
My home that I live in is paid for, so I am looking for another home as a investment since I have the cash that I am not putting into my own mortgage to invest.
Click to expand...
Ok, now I think I follow you.NEVER buy a property all cash (unless it is TEMPORARY). Long term, you want to use the leverage of a mortgage to keep yourself LIQUID. (Wall Street).

You can't rip a shingle off of a house and go buy dinner. Cash is king.

People fail to realize that cash doesn't equal equity. It costs $$ to convert equity to cash - hence costs of refinancing and closing costs.

I try to keep a property at 70-80% mortgaged. If there is too much equity you need to get some cash out.

There's also tax benefits to buying over time (mortgage interest deduction).

Use the $$ elsewhere - possibly buying more property or things that will give you more cash - and keep the rest liquid. You don't want a problem to come up and be strapped for cash because it is stuck in a house. That takes time, effort and $$ to get back out of the home.

 
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Ministry of Pain
Ministry of Pain

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