All Forum Posts by: Alison Lee

We are going to buy a house for us to move into. We had entertained the idea of a conventional loan but quickly realized that the closing costs were going to be very expensive. 

Would I be better off paying cash and then doing a refinance? We would like to refinance if we decide to pay cash because it needs some remodeling. Are the costs associated with refinancing cheaper than the costs associated with buying a house via loan?? Thank you!!

Comparables rent for $600-$700 per door, that's why I feel like they need to be upped. These are roughly 6 miles out into the country from the county seat and that's why they're cheap rent. 

Here's the situation: I can buy three duplexes for a total of 225k. The rent roll is small @ $375/door or $2,250 total per month. Property taxes would be roughly 2k per year, maybe $2500 at most. 

They are 40 years old and two of the three need a new roof. The seller said he would actually put these roofs on for me if I decided to buy them...meaning it would be included in the 225k. They are all full and typically have a waiting list according to him. Seller is 70 and wants to sell because of health/age. 

I feel like they need to be $450/door. He already stated to the renters that it is going up to $400/door upon new roof being put on. They are in average to above average shape. I walked them the other day and they're not dumps be any stretch. 

Thoughts??? 

I just bought a SF with cash and we put it under an LLC. The only reason we do it that way is in case of a lawsuit. It protects my other assets if we get sued.

We have an opportunity at a one bedroom and one bathroom duplex. It is a pretty nice place. My question is do these have strong demand? I'm assuming they would have more turnover? Thanks! 

Jerry, 

What would be your standard procedure when buying a mobile home from the 80s/90s? In my area, I see people actually putting in replacement windows, laminate flooring, 50 year metal roofs, and the standard kitchen/bath renovations. I could easily see this method of renovating soaring to 20k-30k. 

Thanks for the response.  My take on the situation is that the builder still owns them and is wanting to sell them. He probably stands to cut a hog's *** even at 400k. 

These duplexes are surrounded by 300k-500k homes here in the upper south/lower midwest. So the neighborhood is nice. These would sell for one million plus on the coasts.

I have a shot at two duplexes, four doors total that they're asking 475k total. These are A properties, and approximately 2-3 years old. Each door rents at $975 and all four have tenants. Taxes would be roughly $4,750 per year if bought at 475k. Insurance would be $1200 per duplex or $2400 total. Maintenance expenses would/should be small... 

Is this an attractive deal? I feel like I could possibly buy these for 425k. Thank you!

Question, where are you getting into 30k houses and renting them out for $600+??

 Couldn't the same be said for using leverage? Buying with leverage creates an artificial looking return if you ask me.