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*** Official Real Estate Forum *** (1 Viewer)
- Thread starter jeff_eaglz
- Start date
ThePassion
Footballguy
Anyone have experience purchasing a home on www.auction.com?
The Hank
Footballguy
ghostguy123
Footballguy
bumpty bump
comfortably numb
Footballguy
Just be careful if reading this thread for info. It started in 2006.....a lot has changed in the industry.
ghostguy123
Footballguy
I wont even look before 2012 probably
ghostguy123
Footballguy
wow, it's alllllllllllll old stuff pretty much.
I guess people need to start throing out more info eh?
I guess people need to start throing out more info eh?
comfortably numb
Footballguy
Yea, a lot of the enthusiasm probably died off when people lots their shirts.
So. What is it you are looking to invest in?
ghostguy123
Footballguy
right now...................a $45,000 condo, needs at most 5 grand to get it move in ready...............rents for 725, taxes and condo association fee 220 each month.Yea, a lot of the enthusiasm probably died off when people lots their shirts.
So. What is it you are looking to invest in?
Sabertooth
Footballguy
Seems pretty narrow to me to be honest. What does it need to be move in ready because you can't do much for $5k. Flooring alone will probably be 1-3k depending. Appliances?
I'm a full time house flipper but I've found that being a landlord really blows. I got calls on July 4th at 9:00 am this year and again on Thanksgiving morning. That was enough for me. Totally blew two of my holidays. Vacant houses I am working on don't call me at inopportune times when I want to spend time with my wife and kids.
I'm a full time house flipper but I've found that being a landlord really blows. I got calls on July 4th at 9:00 am this year and again on Thanksgiving morning. That was enough for me. Totally blew two of my holidays. Vacant houses I am working on don't call me at inopportune times when I want to spend time with my wife and kids.
Sabertooth
Footballguy
I had an opportunity and everything I read about the site was that it's basically a scam. You won't ever actually "win" your auction. I decided against getting too far into it. Lots of reviews out there for auction.com
comfortably numb
Footballguy
ghostguy123
Footballguy
Hot water tank, dishwasher, paint......................maybe carpet both bedrooms. Not much more after that, little stuff like locks and stuff
ghostguy123
Footballguy
Random
Footballguy
For a rental I can nearly do a whole house for $5K. Paint, floor, plumbing, appliances.
So you threw in the towel on LLing? I've thought about it many times. WTF happened on July 4th that couldn't wait?
How many flips you doing a year? We bought a property late last year that we're thinking of flipping. $15K paid, needs about $10K (assuming we flip it), should list in the $90's. Unfortunately, we're not seeing anymore $15K homes.
Thorn
Footballguy
I give my tenants the number to my plumber, electrician, and handyman. I instruct those workers to check with me first. What did these people need on a holiday?
ghostguy123
Footballguy
So I went and looked at this condo again today with my wife, and she actually gave me the "ok" and left the decision up to me.
Now keep in mind, we do not own the home we live in. We have another year on our lease, which is ok since we are fine taking our time looking around for our longterm future place.
I do want to have rental property at some point anyway. Just not sure if it really matter if the rental property is purchased before or after we purchase our primary residence.
Say I bought this condo for 45k and put 5k into it. A year from now we will still have 20% to put down on our family home. Plus the equity in the condo we would own since I would be buying it cash, to use as collateral if needed.
I think my longterm goal here would be to have the rental, buy our family home, and then get that family home paid off ASAP. Given our incomes, the value of the house we would be looking for, and the rental income, should be able to have the house paid off pretty easily within 10 years................at which point I would hope to buy 1-2 more rental properties in the area and eventually more down the line.
Ughhh, got a lot of thoughts flying through my head on this. The advantage I have is that I currently have enough savings to buy a fairly decent rental house/condo in this area cash. Another way to look at it is that I have enough for a pretty huge down payment on a house. Just not sure which course of action to take. Do I go for the rental property now, or buy our family home first next year and then look into a rental propery maybe a few years down the line.
Now keep in mind, we do not own the home we live in. We have another year on our lease, which is ok since we are fine taking our time looking around for our longterm future place.
I do want to have rental property at some point anyway. Just not sure if it really matter if the rental property is purchased before or after we purchase our primary residence.
Say I bought this condo for 45k and put 5k into it. A year from now we will still have 20% to put down on our family home. Plus the equity in the condo we would own since I would be buying it cash, to use as collateral if needed.
I think my longterm goal here would be to have the rental, buy our family home, and then get that family home paid off ASAP. Given our incomes, the value of the house we would be looking for, and the rental income, should be able to have the house paid off pretty easily within 10 years................at which point I would hope to buy 1-2 more rental properties in the area and eventually more down the line.
Ughhh, got a lot of thoughts flying through my head on this. The advantage I have is that I currently have enough savings to buy a fairly decent rental house/condo in this area cash. Another way to look at it is that I have enough for a pretty huge down payment on a house. Just not sure which course of action to take. Do I go for the rental property now, or buy our family home first next year and then look into a rental propery maybe a few years down the line.
comfortably numb
Footballguy
Make sure 20% will be enough.
It should, being it will be your primary dwelling but banks get scared when you now have a second property to account for.
You may not have a problem if you are not carrying a mortgage on the condo but just make sure with whatever lending institution you will go through.
They may require you to have XX amount in reserves to carry the condo for XX months.
It should, being it will be your primary dwelling but banks get scared when you now have a second property to account for.
You may not have a problem if you are not carrying a mortgage on the condo but just make sure with whatever lending institution you will go through.
They may require you to have XX amount in reserves to carry the condo for XX months.
Sabertooth
Footballguy
I had a stoppage of all sewage water. Pipes were gummed up with black sludge. Which I've seen a few times. Just old galvanized plumbing I guess. I try to do 4-6 per year. I really don't care to be a landlord at all but I am basically stuck with four units. It's been tough sledding up here and that's why I am considering relocating and getting into a better market. Right now I am thinking the Charlotte area.
Sabertooth
Footballguy
That's probably a good idea but I really don't see how you can make money paying plumber or electrician wages. Seems like a 3 hour job would pretty much crush your profits for a month or more.
ghostguy123
Footballguy
Yeah good point. After the purchase of the condo (if I decide to do it) and fixing it I would still have 20% down for a house at almost $200,000 which is about the top of the price range we will be looking at. Plus that will be a year from now and we will definitely have more saved from now till then.
I am having a hard time talking myself out of buying this rental. It is not the GREATEST rental investment ever, but in the area I live it's VERY hard to get a really cheap property that doesnt need a TON of work. Still though, it's at most a 55k investment that will bring in around 400-450 profit monthly depending on maintenance needs along the way.
(HULK)
(Smash)
Hey, anyone ever do a 203K loan or a HomeStyle loan to remodel their current residence? My wife is back to work finally (after 5 years off while the kids were born/young) and we can afford to expand now. This seems like a good way to do it, but I would love to hear from someone with firsthand experience. Also, I can't find the rates for these anywhere, are the similar to the current FHA rates?
Thorn
Footballguy
Well it would have to be a pretty big job to eliminate profits; in my experience that's very rare, and typically not unexpected. Also, that's why I tell the workers that they need to call me first before beginning work. If I think I can do it, I do it. But certainly not on a holiday.
ghostguy123
Footballguy
Anyone know of either some sort of book or something on the best way to invest in rental properties?? Maybe something explaining the in great detail the best types of properties to buy, plus some sort of plan on when to invest in the next one?
Or maybe one of you would want to share the types of properties you have had the best luck with and why.
Or maybe one of you would want to share the types of properties you have had the best luck with and why.
Skylord
Footballguy
Find an area that house prices have dropped but rent has not. You need to be cash positive when renting out your property.
Get in front of the hipsters. Figure out where they are moving into. This area will already be priced high, but a group will be leaving the area because it's getting trendy. Determine where this group is moving to, it will be the next big thing.
ghostguy123
Footballguy
I guess I should specify I want to only look for property in my area, so moreso looking at types of properties, not location.
Excellent points though. Just that looking outside of my current area isnt anything I can do NOW. Maybe down the road
Zegras11
Footballguy
I read about 8 books off of Amazon before I started. Just took the best parts of each and then applied them to what I wanted to do.ghostguy123 said:
On investing in a complex, some simple, but great advice was, "Tour the property. If the fences are in good repair, the rest of the property should be in good repair."
ghostguy123
Footballguy
I realize you want to buy property that is cheap in relation to rent prices, but here is a question maybe that can be expanded on:
SIngle family house, duplex, condo, 4-8 unit apartment building, triplex, .................what kind of dwellings are best to look at early on in the process.
I am about to put in an offer for a condo of about 45 grand, cash offer. I dont have a LOT of cash in reserve after that, but just wondering maybe the best progression to look into after getting one, then two, then three........................
SIngle family house, duplex, condo, 4-8 unit apartment building, triplex, .................what kind of dwellings are best to look at early on in the process.
I am about to put in an offer for a condo of about 45 grand, cash offer. I dont have a LOT of cash in reserve after that, but just wondering maybe the best progression to look into after getting one, then two, then three........................
ghostguy123
Footballguy
Zegras11
Footballguy
FWIW,
I did one.
Then bought 3.
Then bought 4.
Then bought 52.
After you buy this 45K condo, run it and get a feel for it to get your feet wet.
Once you are comfortable, take a loan out for 25K on it and buy a $75k place.
Rinse and repeat every 3-5 years. But always have at least 35% down. This will keep things super safe.
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ghostguy123
Footballguy
Are your 52 units all different kinds of units? Like a mix of houses, condos.........?
Yes I would like to get this one and see how it goes.
I do know some longtime friends who can do pretty good home repair that could actually help me take on a fairly extensive rehab process.
Do you avoid places with basements?? random question
ghostguy123
Footballguy
And for anyone who mentioned reading books, would you have a good suggestion for a book that talks about different types of dwellings and the ins and outs of the good and the bad for each as a rental property? Something that talks about mainenance, fees, structural stuff, pricing vs rent.........stuff like that. Ranch better than a two story? Avoid large yards? Avoid basements? Certain types of driveways to look for?? Certain contruction years to avoid?
I guess a book like that would be something I would definitely make sure to read.
I guess a book like that would be something I would definitely make sure to read.
Zegras11
Footballguy
All 52 the same. 3bd 2 ba 1300 sq ft. (26 duplexes)
friends - good only if that's what they do for a living. have to be super upfront to avoid issues.
basements - never had them as rentals. Just never came up. Lived in one recently in Boise. I would avoid. Seems they always find a way to flood.
ghostguy123
Footballguy
Yeah, my rehab abilities are pretty non existent. At this point I have to pay someone to do almost everything for me. I would also like to learn some of that kind of stuff along the way to save.
And yeah, as for basements, seems like an unnecessary risk. Definitely will avoid.
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Zegras11
Footballguy
I'm not a fixer guy at all. Always bought places in good repair and didn't mind paying for it. Good repair = good tenants
Dude, you';re buying a condo. You're not going to have a lot of repairs.
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ghostguy123
Footballguy
With this particular condo, its nice to know I would never have to worry about the roof, siding, or driveway. Basically the door and windows are the only things on the outside I would be responsible for, and those are in ship shape at the moment.
Putting in the offer tuesday. Cash offer with the bank on the short sale, so we'll see what happens.
Putting in the offer tuesday. Cash offer with the bank on the short sale, so we'll see what happens.
Dragons
Delusions of Grandeur
Loans are different in every state, but the banks mainly care about debt and income. They won't care if you own another property outright, they will only care whether you have a financial obligation (maybe your association dues, insurance and property taxes will come into play). On the other hand, you'll also have additional income to report and you should meet the conditions to allow you to use a portion of the rental income (last I was told you need 30% equity in the rental property to use 70% of the rental income as income).
I wouldn't worry about this aspect. Other than the loss of cash, it appears you're improving your financial standing for getting the eventual mortgage.
Random
Footballguy
Mine are mostly SFHs. Started with one, worked our way up to 15(?). Two are duplexes. I'd have more duplexes but they just dont go cheap enough around here (I can basically buy many SFHs for the price I would pay for a duplex). Basically just look at your estimated total cost to net income. Mine normally run 3-4 years to break even.
ghostguy123
Footballguy
3-4 years? Profit only?? That seems incredibly good. Unfortunately there are no single family homes around here for 30-40 grand that dont need a lot of work, and I mean a LOT of work.
I would be putting 50 grand (including purchase price and updates) into this condo to have it move-in ready, and the rent will bring in $725 a month. 500 of that will be profit per month after property taxes (100 a month) and condo association fee (120 a month). So even if there are no extra fees along the way it would still take 8-9 years to recoup the initial investment.
I like this particular condo for a rental (I used to live in this same complex a few years ago) because I dont have to worry about the roof, siding, driveway, or really anything outside at all. Also, if there are any complaints about my tenant or if my tenant was to complain, it would be to the condo association, not to me.
I was renting one of these condos a while back for three years, and I only contacted the owner a handful of times at most.
I can see how it isn't the best moneymaker for my investment, but given the somewhat limited amount of work needed to get it ready to rent, plus the limited amount of issues I personally need to deal with on a regular basis, I think this is a very nice way to go for a beginner.
Not a fan of paying taxes on the rent though. Boo
ghostguy123
Footballguy
I probably also need to read up on ways pay the least amount of tax on things as I can. I know I can write off all expenses that go into it, but maybe there are other things I am not thinking of that I don't want to screw myself out of.
ghostguy123
Footballguy
Oh, and quick question for anyone who knows.
Most of the work that will be done after I purchase this place will be done by two of my friends. I was just wondering the correct way to create a receipt so that I can show proof of what I paid for services come tax time.
Most of the work that will be done after I purchase this place will be done by two of my friends. I was just wondering the correct way to create a receipt so that I can show proof of what I paid for services come tax time.
Zegras11
Footballguy
ghostguy123
Footballguy
Got it. I did that about 7 years ago when I moved out of my old house and used it as a rental for a little while.
Put in an offer on my condo a couple days ago for the short sale. Seller approved, waiting to hear from the bank. I know this can typically take a while, but my realtor was talking on the phone with the realtor who is representing the bank for this property. Should hear back a lot quicker than normal.
Wait and see at this point. I came in with an offer 2 grand less than what the guy originally said was their "lowest amount they would accept". They already had one deal fall through. Hoping a cash offer entices them.
Random
Footballguy
About a year ago we came across a duplex with a bank owned for sale sign in the window (no other signs). Realtor couldn't find the listing and said it must have sold, and we couldn't find it on multiple websites. Finally found it online, listed in the wrong zip code (transposed numbers). Told my realtor the address issue and she was able to find it on the MLS. It had been listed for over a year. Asking price started at 90K and was reduced multiple times to 25K. It was a steal at 25. I offered 15 (much against my realtors advice - she thought I should offer full price). My logic was that if we couldn't find the listing, my realtor couldn't find the listing, and the listing realtor couldn't find the listing, we would get it at any reasonable price. Bank countered at 18 (dead give away that they just wanted it gone), and I went up to 15.5. They accepted that day.
This was one of my favorite negotiations.
This was one of my favorite negotiations.
(HULK)
(Smash)
ghostguy123
Footballguy
Nice.
I think in my situation the bank is going to give me a pretty quick answer. My realtor also seems to think so. Would be nice to hear back within the week. I wanna get this damn thing rented out by July. Probably gonna take me 2-3 weeks to get it ready depending on how much free time I get plus coordinating some things.
I know the short sale is a bit different though. A bank owned that has been sitting over a year is a pretty easy score. And this one just seemed that way cause they screwed up. Score for YOU bigtime.
Binky The Doormat
Footballguy
dot
