update Property #3

Been off the net for a while so decided it was time to revisit my blog and see where I was on my goals.

Will quickly post on houses 3 and 4

House #3

Property – Colorado Springs, Co

How I found it –Went be some referrals from friends that have lived at Carson to get some neighborhoods, as well as using a local agent refereed by USAA. Found property right outside gate that met all my specs (3/2, family neighborhood, 10 min less commute to post) purchased in July 2004 , during the run up in real estate prices . more on that later. Owner occupied for 4 years, turned into rental summer 2008 after I got orders to move.

Purchase price listed at $180K, put in offer for 169K , settled at 174 plus closing costs. Had been on market 60+ days. 3 or 4 other houses in similar are had similar price points .

Financing – Mortgage broker, used 80-10-10 with 10% down . second mortgage was through chase . 1st mortgage was sold eventually to BOA. Was able to pay off second mortgage in 3 years based on money saved from deployments. Original rate was 6.25 , refinanced in 2012 down to 4.50

Owner occupied for four years – and then time to move PM firm I had scouted and interviewed while I was stationed there.

Current status – Has had two tenants since June 2008. Current tenant moved in June 2011. Current rent at $1050 month . hasn’t been raised in 5 years. No current issues with tenant.

Rental rate $1050

Current value~ Using Zillow and trulia, had dropped to as low as $155K in 2010 / 2011 time period . now back up at $179K so about the value I bought it at.

Mortgage – refinanced in 2012 to lower rate from 6.25 to 4.5 current payment about $730 . balance 110 K

Mortgage payment 730 .

Expenses taxes 733 year

Insurance 666 year

Property Management 1260 year(10%)

Maintenance varies usually couple hundred year to take care of landscaping issues.

CAPEX – had to replace roof in 2004 . insurance covered most with the exception of deductible. Also replaced D/W and Stove in 2010, 2012

Property Way ahead – Keep as rental. May look to take out HELOC for other investment opportunities, but currently it has good rental history, strong PM and manageable debt costs