All Forum Posts by: Rebecca Jeffers

@Ian M. thank you. Yes, I'm aware that the taxes can go up. Appreciate your input.

Thank you Frank and Yolanda. I have my insurance agent working on it and I was very close. The tax estimate is actually from the county records. Appreciate your insight.

I'm looking at my first duplex in the DFW metro area. Built in late 60's, 2/2, 2400 sq feet in older but established neighborhood. Renter who wants to stay on one side and owner occupied on other. Renter pays $700 plus $50 for water. There is one water meter for entire duplex. Electric is paid by renter.

Asking price is $80,000. Needs some work, has not been kept up. On the surface looks like minor wood replacement/repair outside, and general cleanup and paint inside. The HVAC units inside have been rebuilt and one outside has been rebuilt and the other outside unit is about 5 years old (Trane). I do have concerns that the rebuilt ones will need replacing at any time. I do not have experience with rebuilt units. Of course an inspection might turn up other things but this is what I know and can see.

Duplex went into foreclosure (Zillow reports sold for $64,000) several years ago and current owner is renting to buy. They either have to refinance or sell. They want out.

They say the property has been appraised at $105,000 in current condition but I do not think it would sell for this. Although the area is nice and close to many things the street is somewhat "shabby" in that it is for the most part, all duplexes renter occupied, and minimally kept. Area seems to stay rented and goes for $700 -800.

Taxes appear to be about $2300 according to Zillow. They do not know what taxes or insurance are as they are paid with their payment. I estimate insurance at around $1200.

I'm tempted to lowball at $68,000. I don't think they will accept it but might be a good starting point.

I have applied the 50% rule and the cash flow is good.

Any advice or wisdom would be appreciated.

Looking forward to meeting everyone. I've RSVP'd on Facebook as well.

@Matt Devincenzo

Thank you for the links. I will listen to these this weekend.

And thank you all for your input.

@Brad T Yes I have current income as a professional counselor in private practice and also own a hypnosis center. Do you mean purchase rental outright for the $40K? Or finance?

Thank you

Thank you everyone for the great responses. I had not thought of the cash out refi Gautam.

Marcus I made a good profit on first 3 houses (25-30k), broke even on the 4th (Arkansas in 07 just as the bottom started falling out) and now living in the 5th. Profit has gone into each subsequent home plus living, divorce, etc. I also now own the home I'm in with no mortgage. Plus have other assets.

I have not been as mindful of retirement as I could have been and appreciate all the ideas you've given today for moving forward. It is my goal to attempt a catch up with REI.

Hello,

I'm new to BP and have already learned so much. Would like to share my situation in hopes of getting some considered advice.

Over the last 16 years I have purchased 5 fixer upper homes, lived in them for 2+ years and then sold for good profit. I am currently in the 5th home for coming on 5 years. I generally do quite a bit of the work myself and then contract out the rest. I have never bought just to flip but think I would enjoy it and be good at it. That said I am also now in my 50's and the hard work is not as easy as it used to be!

My situation is this:

I am not where I had hoped to be with retirement goals so would like to have a 10 year plan to get myself in a better position. I currently own outright the home I am living in. It is a beautiful and comfortable home and I could definitely stay here. $175,000 is good minimum estimate of what it would bring and I think it would sell very quickly. I also have another $40,000 in stocks that could be accessed to achieve goals. Current home was a foreclosure purchased at $124,000 and I have approx. $24,000 in it.

Should I sell home and use partial funds to purchase via conventional loan another fixer upper to live in and then sell it after 2 years and repeat cycle? Could then also use rest of money to purchase other flips or rental property. Or should I stay where I am and use my equity in the house plus my savings to borrow money for flips and/or income producing property? I would definitely like to have some passive income from rental property in my portfolio.

What would you do? I'm looking forward to the considered wisdom of this group.

Thank you - Rebecca

Hi Jacob,

I'll chime in on the "its OK to paint the brick" camp. I would take into consideration what is normal and acceptable in your area. Here in the DFW area there are many painted brick houses. Especially in Dallas. And they are lovely. It can be a way to distinguish the house and modernize. Yes the paint over the years can begin to fade but in many cases this adds to the charm. So speaking from an aesthetic point of view I think it is an option. Also there are paint washes that can be lovely on red brick. Intentionally going for the aged look from the beginning.

Best of luck to you in whatever you decide.

Great idea Kathy. Won't be able to make the Irving meeting, but I am interested in a mastermind group in the Fort Worth area.