*** Official Real Estate Forum *** (2 Viewers)

[ghostguy123]

Just heading into the process of buying a house for the family.

Question about property taxes here.

According to the county auditor's website, my house is being taxed at a value of about $22,000 more than I am about to pay. I plan to contest this, and have been reading up a little on what to do. Anyone have any suggestions, stories (good or bad), or experiences they would like to share? Advice appreciated on this one.

edit......One good thing that seems to be in my favor is the actual purchase price. Seems to be listed several places as being pretty damn good for my case, as it obviously should be.

 

[Sabertooth]

I was told last season to get an appraisal.

 

[Sabertooth]

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.

Nice work. That'll cash flow.

 

[Random]

Thanks. We had a major issue with this place that set us back about 6 months. Long story short, the city tore down the house next to us, and during demo the chimney of the tear down fell into our place causing some pretty serious damage. The damage estimate came in at a little under 2x what we paid for the place, and we decided to fix it ourselves (it had to sit vacant for about 6 months before we could start the repair). Just recently got the small (2 bed) side rented for 575. The 3 bed side will be ready to rent by the end of the month (hopefully) and will rent for 625.

 

[Sabertooth]

What'll you have into it at the end of the day?

 

[Random]

about 25K. Definitely not our best property considering the time it took to get ready.

 

[whoknew]

Just heading into the process of buying a house for the family.

Question about property taxes here.

According to the county auditor's website, my house is being taxed at a value of about $22,000 more than I am about to pay. I plan to contest this, and have been reading up a little on what to do. Anyone have any suggestions, stories (good or bad), or experiences they would like to share? Advice appreciated on this one.

edit......One good thing that seems to be in my favor is the actual purchase price. Seems to be listed several places as being pretty damn good for my case, as it obviously should be.

It depends on the state, but I protest property taxes for a number of clients in Texas. Here, if you took in the settlement statement, you would easily get the appraised value lowered to the actual purchase price. I don't know what your market is like, but you can try to get it lowered below the purchase price also. That's difficult, but not impossible.

Again, though, that is highly state-specific.

 

[ghostguy123]

Ok, may as well copy and paste this post in here since it got nowhere in the finance section:

----------Ok, quickie on situation and then question about taking a loan from my 403-b (loan, not withdrawal).

I have one rental, and am buying a house for the family, 20% down, 15 year. Payment (including everything) will be about the same as I pay in rent right now.

Now I am not say I am planning to do this or even actively LOOKING, but if another sweet deal comes up like the current rental condo I have (total $44,000 investment to purchase and fix up, rents for 750), how strongly would you advise AGAINST me taking out a 40-50k loan from the 403-b for the same type of property?

Only reason I would look towards the 403-b for this is because I might not have enough for down payments on another rental, and even if I did it would completely deplete my savings.

I know the general rule is "don't touch your retirement fund for any reason".....................but something like that would seem like an ok reason.

 

[msudaisy26]

Glad someone bumped this thread. I have some questions.

Looking to move out of our current house and I was wondering if it was better to build new or buy existing and completely remodel from a cost, time aspect. What about selling your existing, better to line up a buyer for your house or find your new house first?

 

[(HULK)]

Looking at some of these old posts.... what part of the country do you live in that you can find properties so cheap? That's amazing.

 

[ghostguy123]

Looking at some of these old posts.... what part of the country do you live in that you can find properties so cheap? That's amazing.

300k one place will get you a huge house while 300k another place gets you a dump. Just the way it is man.

 

[BassNBrew]

Just heading into the process of buying a house for the family.

Question about property taxes here.

According to the county auditor's website, my house is being taxed at a value of about $22,000 more than I am about to pay. I plan to contest this, and have been reading up a little on what to do. Anyone have any suggestions, stories (good or bad), or experiences they would like to share? Advice appreciated on this one.

edit......One good thing that seems to be in my favor is the actual purchase price. Seems to be listed several places as being pretty damn good for my case, as it obviously should be.

Depends on your state. All states have specific laws governing property valuation for taxation purposes.

 

[ghostguy123]

Ok. House is in Ohio

 

[Random]

Ok, may as well copy and paste this post in here since it got nowhere in the finance section:

----------Ok, quickie on situation and then question about taking a loan from my 403-b (loan, not withdrawal).

I have one rental, and am buying a house for the family, 20% down, 15 year. Payment (including everything) will be about the same as I pay in rent right now.

Now I am not say I am planning to do this or even actively LOOKING, but if another sweet deal comes up like the current rental condo I have (total $44,000 investment to purchase and fix up, rents for 750), how strongly would you advise AGAINST me taking out a 40-50k loan from the 403-b for the same type of property?

Only reason I would look towards the 403-b for this is because I might not have enough for down payments on another rental, and even if I did it would completely deplete my savings.

I know the general rule is "don't touch your retirement fund for any reason".....................but something like that would seem like an ok reason.

I wouldn't hesitate. I'm way more comfortable with my rentals supporting me in retirement, than I am with my retirement accounts.

That said, any reason you don't have an Equity Line open on the first rental? Thats how we bought nearly every one we have. Buy cheap, fix it up, open equity line, buy next property, fix it up, open equity line. I think there's a rule now that each bank will only allow 3 equity lines, but really you shouldn't need much more than that.

 

[pecorino]

Wife and I looking for a rental near Doylestown/Newtown/New Hope area of PA with 2 or more beds. PM if you have a lead. Tia.

 

[cstu]

Ok, may as well copy and paste this post in here since it got nowhere in the finance section:

----------Ok, quickie on situation and then question about taking a loan from my 403-b (loan, not withdrawal).

I have one rental, and am buying a house for the family, 20% down, 15 year. Payment (including everything) will be about the same as I pay in rent right now.

Now I am not say I am planning to do this or even actively LOOKING, but if another sweet deal comes up like the current rental condo I have (total $44,000 investment to purchase and fix up, rents for 750), how strongly would you advise AGAINST me taking out a 40-50k loan from the 403-b for the same type of property?

Only reason I would look towards the 403-b for this is because I might not have enough for down payments on another rental, and even if I did it would completely deplete my savings.

I know the general rule is "don't touch your retirement fund for any reason".....................but something like that would seem like an ok reason.

I would highly recommend you do that, assuming the $750 is a reliable rent.

 

[cstu]

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.

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

These are amazing rents you are getting for the price. Nothing compared to Los Angeles where you need to spend $1M to get few thousand.

 

[cstu]

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.

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

Really jealous of your investments.

 

[ghostguy123]

Love how my interest rate went up like a half a percent from when I first inquired about a loan to now.

Son of a ........................is this a for real thing or is the guy ####### with me?

 

[BassNBrew]

Ok. House is in Ohio

I don't live in Ohio. Good thing since I ride a bike.

 

[BassNBrew]

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.

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

Really jealous of your investments.

Keep in mind they are in Ohio probably buried under snow. That should make you feel better.

 

[ghostguy123]

Ok, may as well copy and paste this post in here since it got nowhere in the finance section:

----------Ok, quickie on situation and then question about taking a loan from my 403-b (loan, not withdrawal).

I have one rental, and am buying a house for the family, 20% down, 15 year. Payment (including everything) will be about the same as I pay in rent right now.

Now I am not say I am planning to do this or even actively LOOKING, but if another sweet deal comes up like the current rental condo I have (total $44,000 investment to purchase and fix up, rents for 750), how strongly would you advise AGAINST me taking out a 40-50k loan from the 403-b for the same type of property?

Only reason I would look towards the 403-b for this is because I might not have enough for down payments on another rental, and even if I did it would completely deplete my savings.

I know the general rule is "don't touch your retirement fund for any reason".....................but something like that would seem like an ok reason.

I would highly recommend you do that, assuming the $750 is a reliable rent.

It is here. The condos are right next to the schools. One add on craigslist and I had 10 inquiries within 24 hours. And this was in October.

It helps that my city has a really good school system. Frankly I don't understand why the cost of these particular condos was driven down so much. In 2004 the exact condo I own sold for $80,000. Taxes and fees are low. I don't get it. Whatever.

I lived in one of the 3 bedroom condos here a while back, and they were definitely adequate.

 

[ghostguy123]

Snow is getting called out now?? What did snow ever do to you?

 

[Random]

OH$O?

 

[Sabertooth]

about 25K. Definitely not our best property considering the time it took to get ready.

Meh, the time was going to pass either way. I bet you learned something. That's got some value too.

 

[Random]

Actually, what we've learned over the last couple rehabs is that we can't dedicate 95% of our time rehabbing these sub $20K properties anymore. We have too many rentals now to maintain so these 3-4 month projects now take well over a year. We're just going to have to put our big boy pants on and buy properties that cost a little more but take much less time on the front end to get ready. And we've still got an un-rehabbed property we need to do we bought in Aug 2013.

 

[ghostguy123]

OH$O?

nice.......................$$$$$$$$$$$$$$

If I had some more damn money I would buy more damn houses around here.

Saw one listed for 70 that I checked out, bank owned, could probably get for 60. 15-20 grand worth of work (and that is me paying people to do it cause I am not a Mr fix it) which would be paint, carpet, and some other minor things, and the place would easily rent for over $1,000. Probably closer to $1,200. It would be ready in under a month with a couple full days of work per week.

This rental stuff sure does seem real, real easy if you have some start up capital.

 

[ghostguy123]

Just heading into the process of buying a house for the family.

Question about property taxes here.

According to the county auditor's website, my house is being taxed at a value of about $22,000 more than I am about to pay. I plan to contest this, and have been reading up a little on what to do. Anyone have any suggestions, stories (good or bad), or experiences they would like to share? Advice appreciated on this one.

edit......One good thing that seems to be in my favor is the actual purchase price. Seems to be listed several places as being pretty damn good for my case, as it obviously should be.

It depends on the state, but I protest property taxes for a number of clients in Texas. Here, if you took in the settlement statement, you would easily get the appraised value lowered to the actual purchase price. I don't know what your market is like, but you can try to get it lowered below the purchase price also. That's difficult, but not impossible.

Again, though, that is highly state-specific.

Follow up.......

Apparently by the time i buy this house it will be too late to get a re-assessment for this year (I think anyway, according to some things I have read).

Just curious, but how long will an appraisal last? I think they just did the appraisal a couple days ago, so will it last until I am able to contest it at the beginning of next year?

My closing date is supposed to be April 30th. In Ohio. Oh lord.............what do I do.

Thanks folks

 

[cstu]

Snow is getting called out now?? What did snow ever do to you?

https://www.youtube.com/watch?v=StlMdNcvCJo

 

[cstu]

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.

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

Really jealous of your investments.

Keep in mind they are in Ohio probably buried under snow. That should make you feel better.

I guess...it is in the 80's here all week.

 

[Sabertooth]

OH$O?

nice.......................$$$$$$$$$$$$$$

If I had some more damn money I would buy more damn houses around here.

Saw one listed for 70 that I checked out, bank owned, could probably get for 60. 15-20 grand worth of work (and that is me paying people to do it cause I am not a Mr fix it) which would be paint, carpet, and some other minor things, and the place would easily rent for over $1,000. Probably closer to $1,200. It would be ready in under a month with a couple full days of work per week.

This rental stuff sure does seem real, real easy if you have some start up capital.

Until you tenant stops paying and won't leave.

 

[Random]

OH$O?

nice.......................$$$$$$$$$$$$$$

If I had some more damn money I would buy more damn houses around here.

Saw one listed for 70 that I checked out, bank owned, could probably get for 60. 15-20 grand worth of work (and that is me paying people to do it cause I am not a Mr fix it) which would be paint, carpet, and some other minor things, and the place would easily rent for over $1,000. Probably closer to $1,200. It would be ready in under a month with a couple full days of work per week.

This rental stuff sure does seem real, real easy if you have some start up capital.

Until you tenant stops paying and won't leave.

It happens, and yes it sucks. But it just part of the game.

Looking back, it is absolutely the worst only having one rental. Especially if you get stuck a month or two. Get up to 4 or 5 and that vacancy wont be such a big deal when the others are rented. Get 10-15 and a vacancy or two are just an afterthought.

I remember a few years after getting into LLing and I had 3 or 4 properties. Within one week (wintertime) all my tenants called and said they were moving out (various reasons). I absolutely hated LLing then. I wanted out. Somehow we made it through and kept buying. Glad we did.

 

[Sabertooth]

My problem has been that I rented out two houses that I couldn't sell but I had too much money in. Now I go backwards ever so slightly on those two. My other problem is the back I use wants me to stay under 200k in aggregate debt because I don't hold a "job" and my credit ratios are way out of whack. So I have these two properties now and they don't make money and the duplex and house I do have get their profits sucked up by the two lemons. (one is upside down because the appraisal came in at 130k and the house wouldn't sell for even 80k which I have into it. The other is for sale for my loan amount.)

So I have to keep 4 houses to break even and that chews up my total of 200k in aggregate debt. Between the four properties I am sitting at almost 200k. So I got myself into a bit of a pickle when those homes didn't sell. I took bad realtor valuation advice and I am coming off my worst year yet by far.

Random how do you acquire all these properties? Cash?

 

[Random]

We started in a similar way to you. We flipped two properties in 06 and 07 (one broke evenish, one did well). Used our primary residence HELOC (and 0% credit cards) to purchase and rehab those. At that time you could get 0% cards and not pay a dime for two years.

In 08 we went on to our third flip using the same HELOC, which was paid off from the sale of the prior house. This one turned out to be our first rental because this is when the housing crash hit us. I think we paid 50 for this place and had about 10 in rehab on it. Once we got it rented and realized we were going to be holding it for a while, we opened a HELOC on that property (HELOC#2). The house appraised for about 90K and the bank gave us a 65% LTV line. We used that HELOC to get house #3 which we purchased for about 30 and put about 5 in rehab in it. Opened HELOC #3 on this property and used it to buy house #3 (paid 28, rehab 5) opened HELOC #4, purchased rental #4. By this time they started to get really cheap as the purchase prices went to 20, 11, 9, 15, 15, and I think we ended up paying about 15 for each one after that. Including two duplexes.

Sometime during that purchasing spree I refi'd my primary residence and rolled that equity line into the mortgage. So today we are sitting with 4 open HELOCs and only one of them has a balance.

Pretty sure its mostly documented in this thread.

 

[ghostguy123]

I am not actively trying to buy another rental right now, but I will if another one lke the one I have presents itself.

Right now there is another condo in this complex where my other one is that is in preforeclosure (some of the 3 bedrooms sold for about 110-120k several years back and now sell for about 55-60k when they are NOT a foreclosure).

I also know the head of the condo association there who can let me know info about the property since she is allowed inside for various reasons.

If it comes available and the price/time/effort makes sense like the other one I bought, I would have no problem buying it.

 

[BassNBrew]

I am not actively trying to buy another rental right now, but I will if another one lke the one I have presents itself.

Right now there is another condo in this complex where my other one is that is in preforeclosure (some of the 3 bedrooms sold for about 110-120k several years back and now sell for about 55-60k when they are NOT a foreclosure).

I also know the head of the condo association there who can let me know info about the property since she is allowed inside for various reasons.

If it comes available and the price/time/effort makes sense like the other one I bought, I would have no problem buying it.

I would strongly recommend not putting too many eggs in the same basket and diversified into different complexes or types of housing.

 

[Random]

I am not actively trying to buy another rental right now, but I will if another one lke the one I have presents itself.

Right now there is another condo in this complex where my other one is that is in preforeclosure (some of the 3 bedrooms sold for about 110-120k several years back and now sell for about 55-60k when they are NOT a foreclosure).

I also know the head of the condo association there who can let me know info about the property since she is allowed inside for various reasons.

If it comes available and the price/time/effort makes sense like the other one I bought, I would have no problem buying it.

I would strongly recommend not putting too many eggs in the same basket and diversified into different complexes or types of housing.

BNB - Any first hand experience as to why this is a bad idea? I think there's a guy on here that owns something like 50 units, all in the same complex.

 

[Zegras11]

I am not actively trying to buy another rental right now, but I will if another one lke the one I have presents itself.

Right now there is another condo in this complex where my other one is that is in preforeclosure (some of the 3 bedrooms sold for about 110-120k several years back and now sell for about 55-60k when they are NOT a foreclosure).

I also know the head of the condo association there who can let me know info about the property since she is allowed inside for various reasons.

If it comes available and the price/time/effort makes sense like the other one I bought, I would have no problem buying it.

I would strongly recommend not putting too many eggs in the same basket and diversified into different complexes or types of housing.

BNB - Any first hand experience as to why this is a bad idea? I think there's a guy on here that owns something like 50 units, all in the same complex.

That would be me. Ideally bnb is correct. I took advantage of a deal that made too much sense to pass up. Still going Well.

 

[ghostguy123]

I am not actively trying to buy another rental right now, but I will if another one lke the one I have presents itself.

Right now there is another condo in this complex where my other one is that is in preforeclosure (some of the 3 bedrooms sold for about 110-120k several years back and now sell for about 55-60k when they are NOT a foreclosure).

I also know the head of the condo association there who can let me know info about the property since she is allowed inside for various reasons.

If it comes available and the price/time/effort makes sense like the other one I bought, I would have no problem buying it.

I would strongly recommend not putting too many eggs in the same basket and diversified into different complexes or types of housing.

BNB - Any first hand experience as to why this is a bad idea? I think there's a guy on here that owns something like 50 units, all in the same complex.

I agree you shouldnt GENERALLY buy all in the same complex. However, knowing what I know and talking to people, this is as safe as it gets over here.

Sure, something can go wrong to blow that, but the odds are super, super low (again, based on people who know this area and know much more about investing than I do and likely as much as most if not everyone here).

 

[BassNBrew]

I am not actively trying to buy another rental right now, but I will if another one lke the one I have presents itself.

Right now there is another condo in this complex where my other one is that is in preforeclosure (some of the 3 bedrooms sold for about 110-120k several years back and now sell for about 55-60k when they are NOT a foreclosure).

I also know the head of the condo association there who can let me know info about the property since she is allowed inside for various reasons.

If it comes available and the price/time/effort makes sense like the other one I bought, I would have no problem buying it.

I would strongly recommend not putting too many eggs in the same basket and diversified into different complexes or types of housing.

BNB - Any first hand experience as to why this is a bad idea? I think there's a guy on here that owns something like 50 units, all in the same complex.

In no particularly order...

Lawsuit against HOA

HOA spending impacting fees

Special assessment

School redistricting

Major road construction (although this is usually a 2-3 year period unless you live in NC not near Raleigh)

This complex becoming a less desirable complex relative to others

Re-zoning

The guy who owns 50 has less exposure to some of these items because with 50 votes he should control the board to some extent. Personally I would have to have a very compelling reason before double dipping in a neighborhood. Generally if there's a good deal in a complex there's likely another good deal in another complex. Think about it like investing in stocks. I wouldn't want more than 20% of my portfolio in one stock.

 

[Sabertooth]

The tax sale house was a fun experience. It's currently condemned but I was able to enter the property before the auction, I believe I was the only person to do so. Turns out it is condemned because the previous owner was very old and unable to care for himself and didn't have a safe place to cook meals. Structurally the home is very straight and square. Small though. I also purchased the home across the street. Paid $1500 for it. Told me wife that day "well I wanted to start paying cash for houses...got my first one." Which was kind of a joke, but kind of not a joke. This home should sell for $50,000 redone. There is probably about 25k in work to do on it. So a nice little profit is waiting for me at the end. Although I may just list it for 10k and move on. I stuck my sign in the yard just in case.

The one house I'm redoing is a Victorian. Reminds me of the house on the Disney movie "UP." Inside it has really beautiful woodwork. I'm just restaining and restoring that. Then fixing some plaster cracks and painting. I'm getting a new kitchen in there, adding a bathroom (it has a perfect spot for that). So it will be a 4/2 with a bigger kitchen. I was able to close off a window in the kitchen which enabled me to almost double the cabinet space which is nice. I don't like moving walls but also don't like small kitchens. This was a compromise because windows are nice. But I think given the choice, a woman chooses more cabinets over a kitchen sink the looks outside into the neighbor's side of his house. I'll post some picks. Also found in the his home ... a dagger from India, a mountain bike, and about 400 in tools.

Thats fantastic! My cheapest purchase was 9K, and we put 5500 in it. It rents for 675. Recently they've been coming in just under 20K purchase + rehab. 675 is pretty normal rent for my 3/1's. I kinda miss flipping. There's a lot more care and pride in the work. With the rentals we just do as little as we can to get it rented.

This is the home I still own own, the Victorian. The "UP" House as the wife and kids call it. I overdid it and got bled by some contractors. Now I am upside down. Interesting to see my thoughts from 2012 on it when I was kicking ###.The tax sale house sold AS-is for 10k. Buyer fixed it up and sold for 70k.

 

[ghostguy123]

In no particularly order...

Lawsuit against HOA

HOA spending impacting fees

Special assessment

School redistricting

Major road construction (although this is usually a 2-3 year period unless you live in NC not near Raleigh)

This complex becoming a less desirable complex relative to others

Re-zoning

The guy who owns 50 has less exposure to some of these items because with 50 votes he should control the board to some extent. Personally I would have to have a very compelling reason before double dipping in a neighborhood. Generally if there's a good deal in a complex there's likely another good deal in another complex. Think about it like investing in stocks. I wouldn't want more than 20% of my portfolio in one stock.

Lawsuit against HOA- This might be the only one from the list that would be a factor for mine

HOA spending impacting fees- super unlikely. They are well insured and have been operating at a surplus with no fee changes for a few years

Special assessment- maybe this, cause I have no idea what would fall into this category

School redistricting- not possible, in fact, brand new school just built less than 1/4 mile away

Major road construction (although this is usually a 2-3 year period unless you live in NC not near Raleigh)- not possible, plenty of roads all around and zero logistical possibility to tear it all down for a freeway, partly because you would have to tear down school and many house, plus there is a free way just north and another a few miiles south.

This complex becoming a less desirable complex relative to others- It already is. Any other condo complex in this city has unit selling for AT MINIMUM double what they sell for here. I mean, the demand is there, but it is already by far the cheapest condo compex in the city.

Re-zoning- Can't even imagine what it would be re-zoned for, and even if it was, does Obama step in and just TAKE the condo away from me?

I realize like any investment there are risks, but again, after talking to people who know this stuff much better than me and have 1st hand knowledge of this exact condo development, I couldn't feel safer investing in multiple units here. There are definitely other condo developments around here that I wouldnt. It wouldnt make sense anyway. A 3 bedroom in another spot that costs over $100,000 will rent for the same amount as the 3 bedroom unit in the development I am in, and those cost just over $50,000.

There is currently a waiting list to rent here. People apparently like living very close to both the high school and middle school, and it helps that it is a fantastic school system.

I did recently hear that they may be making a change soon and rule that a certain percentage of the condos must be owner occupied, and once it gets to be at that percentage you can no longer buy any of the condos unless it will be your primary residence. If this were to happen after I already own them I would be grandfathered in. Plus, it would just increase the already high demand since less would be rentals.

I am sure I will get a call in the morning sometime soon telling me I owe $30,000 for some sort of crazy construction of some sort now that I have said all this, but until then, I'll keep an eye out for another.

 

[uconnalum]

Getzlaf I am following your thinking...I bought my first investment property in '12, bought a second in '13, under contract on a third. Just received a Cash Offer on my first which will allow me to purchase 2 additional properties. I had a goal of 10 in 10 years but may consider upping goal to 15 in 10 years. Looking to find some stuff in Hays County, Denton County, or Collin County Texas befor those areas explode. Also looking at Richmond County, VA. Clayton County, GA has been depressed and property values took a big hit when the school system lost its accreditation but now they have earned it back. Not sold on Clayton I like Fulton County better and millennialist are moving to that area.

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........................

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.

 

[uconnalum]

I have been buying Townhomes always 3BR+ / 2.5 BA+ and minimum 1300 sq ft. Focus on great school district, low HOA, areas where values are off by more than 50% since 2006 and see a growth from sales from 2012 to present, I look at tax records and call other investors who own in complex I am purchasing and ask them a few questions. I also have yet to purchase a Investment Property where I live why put all eggs in one basket if market crashes in my region I am somewhat insulated by owning properties around the U.S. Plus now my son when he goes to college if we have a property in that state he will receive in state tuition.

 

[cstu]

Getzlaf I am following your thinking...I bought my first investment property in '12, bought a second in '13, under contract on a third. Just received a Cash Offer on my first which will allow me to purchase 2 additional properties. I had a goal of 10 in 10 years but may consider upping goal to 15 in 10 years. Looking to find some stuff in Hays County, Denton County, or Collin County Texas befor those areas explode. Also looking at Richmond County, VA. Clayton County, GA has been depressed and property values took a big hit when the school system lost its accreditation but now they have earned it back. Not sold on Clayton I like Fulton County better and millennialist are moving to that area.

Uconn, who is managing all of these properties?

 

[palmersteel]

Have 3 rentals. SFH in Pittsburgh that I'll be selling this year. Two townhomes in same complex in Charlotte.

 

[Random]

I am not actively trying to buy another rental right now, but I will if another one lke the one I have presents itself.

Right now there is another condo in this complex where my other one is that is in preforeclosure (some of the 3 bedrooms sold for about 110-120k several years back and now sell for about 55-60k when they are NOT a foreclosure).

I also know the head of the condo association there who can let me know info about the property since she is allowed inside for various reasons.

If it comes available and the price/time/effort makes sense like the other one I bought, I would have no problem buying it.

I would strongly recommend not putting too many eggs in the same basket and diversified into different complexes or types of housing.

BNB - Any first hand experience as to why this is a bad idea? I think there's a guy on here that owns something like 50 units, all in the same complex.

In no particularly order...

Lawsuit against HOA

HOA spending impacting fees

Special assessment

School redistricting

Major road construction (although this is usually a 2-3 year period unless you live in NC not near Raleigh)

This complex becoming a less desirable complex relative to others

Re-zoning

The guy who owns 50 has less exposure to some of these items because with 50 votes he should control the board to some extent. Personally I would have to have a very compelling reason before double dipping in a neighborhood. Generally if there's a good deal in a complex there's likely another good deal in another complex. Think about it like investing in stocks. I wouldn't want more than 20% of my portfolio in one stock.

Yikes! You have first hand experience with all of these issues? I know you manage (own?) a lot of properties, but thats a lot to swallow. How long have you been in the business?

What were the outcomes of each? What was the worst case?

 

[Sabertooth]

I have been buying Townhomes always 3BR+ / 2.5 BA+ and minimum 1300 sq ft. Focus on great school district, low HOA, areas where values are off by more than 50% since 2006 and see a growth from sales from 2012 to present, I look at tax records and call other investors who own in complex I am purchasing and ask them a few questions. I also have yet to purchase a Investment Property where I live why put all eggs in one basket if market crashes in my region I am somewhat insulated by owning properties around the U.S. Plus now my son when he goes to college if we have a property in that state he will receive in state tuition.

How are you purchasing an renovating out of state? Are you doing reno? How do you handle rentals? I am kind of limited in my local area right now. Just depressed but I am very retiscent about doing something too far away. Whats the furthest you've gone away from your home to buy and investment property?

 

[Sabertooth]

Have 3 rentals. SFH in Pittsburgh that I'll be selling this year. Two townhomes in same complex in Charlotte.

I am trying to get me local properties sold so I can move to Charlotte area.

 

[Random]

Have 3 rentals. SFH in Pittsburgh that I'll be selling this year. Two townhomes in same complex in Charlotte.

I am trying to get me local properties sold so I can move to Charlotte area.

What is special about Charlotte? Just better weather or is it something with the RE market?