Introduction with some questions

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Introduction with some questions

Jake Holmes
Investor · Colorado Springs, CO · Member since 2015 · 34 posts · 7 votes

Hows it going, Im John but go by Jake. Im just in the research stages right now. I still have to work on my fico score as well as my wifes score. Im currently a manager at a Gentelmans club in the Denver area but life in the south colorado springs area. 

Now my question, I have a double wide home on a foundation in the woodland park area that is extreamly delapidated. Time and bad renters have taken its toll on the house. I am currently using it as storrage for the time being. What I want to know is should I 

1 Donate it to the fire departmen for training and let them burn it down for training (take the tax write off) and put a new trailor there

2 Just tear it down and put something else there 

3 Rehab it, it will need to be gutted and a new roof

My second question is, The house Im renting is owned by a military guy. Ive spoken with him and hes willing to sell it to me for what he owes on it plus tax's so about 150-160. How do I find out what the actual value is to decide if its worth it to buy it as a rental. I used the calculator on here and it said i would pretty much break even but I also dont know what to put in for some of the values.

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Anson YoungBusiness Member
Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
11y

You would want to get an agent or experienced investor to get you comps and come up with a value as is.  That way you would know if you are getting a bargain or potentially way overpaying for the property at the amount of what he owes plus tax (which I dont get, but whatever).

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  • Anson YoungBusiness Member
    Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
    11y

    You would want to get an agent or experienced investor to get you comps and come up with a value as is.  That way you would know if you are getting a bargain or potentially way overpaying for the property at the amount of what he owes plus tax (which I dont get, but whatever).

    Podcast Guest on Show #235
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  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @Jake Holmes

    BP is a treasure chest full of useful resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members which is my favorite part of the website.

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  • Jake Holmes
    OP
    Investor · Colorado Springs, CO · Member since 2015 · 34 posts · 7 votes
    11y

    @Anson

    Thank you. My guess is that he rolled his property tax's into his loan. Thats all I can think of.

    @Mark

    Ive been trying to read as much as I could but working 60 hrs a week weith a 6month old baby and a 1 1/2 hr drive each way limits my reading. Ill look into the podcasts.

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  • Allison Karrels
    Investor · Gainesville, VA · Member since 2014 · 118 posts · 76 votes
    11y

    As to your first question - I like option 1- let the firemen burn it down and start fresh -it just sounds fun.  Second choice would be #3 to rehab it if there is enough to save.

    2nd question - see what some similar properties have sold for of similar size and amenities and compare them to the price he is offering.  It might be a great deal or he might owe more than it is worth.

    Good luck!

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  • Shannon Niemiec
    Investor · Neptune Beach, FL · Member since 2015 · 21 posts · 1 vote
    11y

    Hi Jake. It depends on how much you get for rent from the trailer. Do you own the land that it's on free and clear? How much will it take you to get it ready to rent and how long?

    Find a good real estate agent or broker to run the comps on the house you are living in and considering buying. you also need to know exactly how much he owes and get clarification on the taxes. This way you can look at the comps and see if this is a good deal.

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  • Walker Hinshaw
    Investor · Denver, CO · Member since 2014 · 135 posts · 37 votes
    11y

    @Jake Holmes

     In order to quickly see if there is even a chance you would be getting a good deal on the house you are renting, you could go on a website like Trulia, Zillow, or Redfin and look for homes in your area with a similar amount of square footage, beds, and baths and compare prices. 

    If it looks like the deal is good or close to being good, either do more research on Bigger Pockets on how to come up with your own comps or, like many have already mentioned, find a real estate agent or broker that you believe you can trust (and isn't just looking for a commission) and ask them what they think.

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  • Bill S.Pro Member
    Moderator
    Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
    11y

    @Jake Holmes unless you know for sure that the fire department would take the trailer I don't think that's a viable option. Just remember after they burn it, you would have to clean up the remains.

    I assume you own the land the trailer is on. If you can get rid of the trailer then get a replacement and re-rent or rent the land to someone with a trailer. 

    Finally, if you don't have money to trash the trailer, then you should sell the land with the trailer and be done with it.

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  • Adrian Smude
    Rental Property Investor · Plant City, FL · Member since 2015 · 1k+ posts · 379 votes
    11y

    @Jake HolmesWelcome to BP!  It's great you're making time in your busy schedule for your new adventures in real estate!  With that kind of drive time you should be all over the podcast!  

    I like option 1.  I've never done it but is there some type of tax write off here? :)

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  • Jake Holmes
    OP
    Investor · Colorado Springs, CO · Member since 2015 · 34 posts · 7 votes
    11y

    Sorry for the delay in a response. Yes I own the property free and clear. I would rather not sell the property as it has an amazing view is across the street from national forest and I fell the income potential out weighs the sell value.

    As far as the donation, I would in theory get a tax write off as they are titled much like a car is.

    When the house was in decent condition,(2003ish) i got $650 pr mo if im not mistaken

    I would have to do an almost complete rehab on it to get it in livable condition, New siding, roof, Ceilings, carpet, doors, back porch and patch alot of holes in walls.

    @Bill S. While I dont know for sure that they would burn it, it is in between 2 fire jurisdictions, one being a 50/50 department (half paid and half volunteers) and the other is completely volunteer and I dont see them turning down the chance to burn a building for fun.

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  • Jake Holmes
    OP
    Investor · Colorado Springs, CO · Member since 2015 · 34 posts · 7 votes
    11y

    thank you all for the input. Anyone else have ideas

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