My cash cow is dead! Long live the cash cow

[Frank Adams]

Thought I would post about one of my long term deals that "sold" today.

We bought this place in '80 for our own residence. Paid $75K

Moved out in January '88 and rented it for (IIRC) $1050.

Only had 3 tenants through September '88 (rent up to $1200) and sold it on a "$5K down, owner finance" deal. Several agents told me to price it at $99,900 and it would sell easily. Sale price $115K. Ooooh, big time TX appreciation there, huh?

Foreclosed on it in March 2001, cost about $2500 (attorney hosed me). Put about $6K into it, replaced siding, new grog door, paint, carpet.

Several agents suggested I list it for $115-$118K so I resold (April 2001)it on my "$5K down, owner finance" deal, for $135K.

December 2003 refinanced buyer, 1/2 point higher and rolled his past due payments and late charges into the new loan.

March of '08 buyer says he's trying to sell, wants to know if I want to buy it back! By this time we're in the middle of our move to Colorado.

Buyer does get a deal at $143K, 3% to an agent. I get out completely whole, loan balance of about $127K.

The cash cow part that I'll miss, in addition to the 9 1/2% that I was making was the $109/month in late charges. Because this guy, in 7 years never made an on-time payment.

Ah well, it was a good run. Now I've got to find something to put that money into!

all cash

enjoying financial critical mass