All Forum Posts by: Jeremy Shepherd

Got a call from the water department once asking me if I had a water leak. Checked and no leak. Turns out the tenants were charging friends and family to shower and do laundry.  

I agree with Annette. The freeze/thaw cycle could make them worse being in Chicago. I would ask that they be sealed. 

If you are looking to buy in a bigger city with lots of listings everyday on CL I think it could save you time. 

I just went to a tax cert. sale in my county in WV. It was everything from houses, lots, acreage, to portions of coal rights. This can be profitable if you know what to buy and how to do title searches or attorney's fees add up quickly. Here in WV I have to do the title search, send each person a certified letter ,then they have 18 months to pay the back taxes plus my investment and interest. You also have to be prepared to take possession of the property if it goes unpaid. At the sale I was at nothing sold at auction for more than $10, but most will be reclaimed. Laws and figures will be different in Texas. I go to the state auditors page to see what will be for sale. As for what to buy, I research what is going to be auctioned. Also do not make a mistake on the title search and paperwork or the whole deal will be void.

My wife and I bought our primary residence in a flood plane near the Ohio River. Flood insurance was approx. $755 a year. I said no, but the wife liked the house so we signed for it in Dec. 2012 unaware of the passing of Biggert Waters Flood Insurance Act of 2012. In Dec. of 2013 got a bill from FEMA stating my premium was now almost $8K per year. That said, there was a delay passed and it is back to around $800 per year currently. However, this delay is only for 4 more years and after this experience I will never purchase another home in a flood area unless I pay cash for it. I would not even have flood insurance if not required by my lender and if I ever have to put in a claim I have bigger problems than just flooding. Just my personal experience and I don't trust the government to get this fixed.

Interested in feedback about a potential opportunity. I've been speaking to a seller about a piece of property with two SFH, two storage style buildings that could be rented, and it has 12 full hookups for campers (RV's) which out-of-town workers are occupying situated on three acres of land. Seller will finance at $1K/month @ 4% until paid off. Asking price is $250K. Location is WV.

Currently:

1 SFH rented @ $1200/month less $300/month utilities

1 SFH rented @ $600/month less $200/month utilities

7 of 12 camper spots rented @ $400/month less $100/month utilities

Storage building vacant

Currently Totaling: $4600 ($1200)=$3400/month

At capacity: $6600 ($1700)=$4900/month

Yearly property taxes: $1300/year

Insurance approx: $900/yr

This would be my third investment property. One thing that is keeping me from doing the deal is the potential of a highway that is being expanded and is rumored to be headed in the direction of the property. Fair market value is hard to calculate in this area because of lack of comps in the area. I’m afraid the state will take the land by eminent domain and may not pay near what I paid. Anyone have experience with being bought out by your state or eminent domain?

Seller stated he is selling because he has other properties and can’t keep up with all of them due to getting older and health reasons. He has also received money from leasing and drilling of natural gas and doesn’t need the property for income any longer.

Interested in feedback from others with more experience than I. And no I am not interested in this property because I think the state will buy it.