All Forum Posts by: Alan Hicks

My situation is very different.

Currently only have a BBA. Salary = $xxxk

Employer is paying for my MBA (MBA in Business Data Analytics)... with only 3 classes to go.

So my MBA is free... . if I had to pay for it.. I don't know if I would have pursued it or not.

I found this property online and contacted the owner.

it's a 2/1, 1000sq ft. for $3000

Granted, it needs $5000 in repairs, $3000 for a new water meter, and $3000 attorney fee to process the quit claim deed.

Thoughts ?

Inspection came back very clean.
Final accepted offer - $130k, $5000 for closing, and septic pumped.

Closing on 10/25.

Then I will immediately list my 2nd home. 

I am thinking listing on Zillow as FSBO. Thoughts ?

yes- I completely agree . Zillow is not accurate.

Alright.. found a nice, fully remodeled 3/1, 1000 sqft with .60 acres for sale close to my house.

Original asking price - $150k, then reduced to $140k. I was able to get it under contract for 130k.

inspection is this friday. Cash out of pocket - $31k (20% +$5000 closing).

Zillow estimate says $133k. 

My plans are to sell my 2nd house (where my dad lives ) and move him closer to me. 15 minute drive beats a 90 minute drive.

Update - 

The house failed ( horribly ) the inspection and the ad was very misleading.

New HVAC was actually 7 years old ( and didn't work )
New water heater was actually 16 years old

Also had foundation issues.

The agreed to drop the price by -10K, but I figured I would pass on this one,

Update:

Financing is in the works.
Asking for 20% down plus 6 months reserves in escrow since this is my #2 investment property ( even though house #2 was my primary and family rents it ).

Interest rate at 5.25%. No PMI, put my principle/interest around $680 + escrows.. So total is around $820.

This reduces my net/net from a $1100 rent. 

So I may renovate, move my father, and cash out house #2.

I don't see much profit in renting.

FYI - the renter in House #2 is my disabled father.....So I must give him a house to live in.

So I can leave him in House #2 and maintain normal rent-mortgage, or sell the house and move him into the House #3.

I lose the cash flow, but I cash out the equity in House 2

My background:

1. Own my primary house in 30043. Purchased for $219k last year. Valued at $285k due to increase in value (mostly because I finished the 1000 sqft basement). No plans to sell.

2. Own a rental property 1 hour away in 30527. Owned for 13 years. Balance = 70k . Rent = Mortgage - so I break even. No profit. Same renter for 8 years. Have around 50k in equity.

3. Just put an offer on a 3/1 in 30019. Cute, 1950's, all hardwood floors, .60 acre, no HOA, 1 mile from downtown with restaurants, shopping, banks, etc. Perfect location to downtown and to the main highway. Also, only 15 mins from my primary house - which is good. My offer of $125k was accepted this morning. Next step is getting it inspected and appraised. I have 10 days.

I have 2 options:

1. Renovate and rent for $1100 per month. This area has exploded with growth. This would have some cash flow after paying mortgage/taxes/etc.

2. Sell the House #2 and the renter moves into House #3. Since the renter is on a fixed income (retiree), the rent would not increase. This means no cash flow, but $50k in cash from the sale.

Thoughts ?

I agree. I love sailing on Lake Lanier.

I have too many hobbies ( flying, sailing, motorcycle racing ) - hahah