#14 is here, with creative financing

[George P.]

so just after about a week after purchasing #13 (Click Here), we closed on #14. this one was a little different.

it's a house in great shape, all brick, 2 bath, huge basement and huge garage, but in an area with houses that are mostly vinyl with crawl spaces. we might have trouble getting people past the few streets that lead up to the house. but once they are there, it will be a great showing.

the house was listed for around 100k a few months ago. then they reduced it a few times and finally it came down to 80. i made an offer with my agent (something i try not to do normally) at 70k, no inspection, closing in 45 days. she thought i was crazy and would never get it for 70k. 

they accepted, but the problem was that this house would have never gotten approved for financing since it needed shower work, terrible deck, caving in porch, and lower bath is missing most of the drywall.

so, i could have either paid someone 2k to do it half a$$ and hope to get it financed, or get it with all cash. but i didn't have 70k cash.

told the agent to go back to them and see how much they would reduce it if i paid cash for it. they said they will give it to me for 68k. so, i pulled the max loan out of my 401K, which is 50k, had 20k and combined it to get this house for 68k.

the interest on the 401k loan is 3.25%, payable to ME for 5 yrs. so, they will be taking $904 out of my paycheck every 2 weeks.

this house has around 8k-10 worth of work. Should rent for at least 1,050. if the people get past the houses around it, should rent for $1300. Really, it's that great of a house!!!

numbers:

PP - 68k
rate - 3.25%, but doesn't really apply in this case
rent - >$1,050
taxes - ~2500/year
insurance - $565/yr

i am happy, but i am tapped out. time to recover some of the money from the rent that's coming in..

Just trying to catch @Josh Sterling and staying ahead of @Mark Ferguson . both tasks are tall orders!