All Forum Posts by: Ben C

We come across the property when visiting a friend's community. the seller's agreement with Realtor ended on May 8th and is preparing to list with another agent. one part of the contract says:

"If the property is sold within 90 days of the expiration or termination of this Agreement (which shall be the
"protection period") to a Buyer to whom the property was shown by Owner, Broker, another broker, or any other person or firm during the term of this Agreement, Broker's full fee shall be payable by Owner. The protection period shall be terminated if Owner enters into a listing agreement with another broker during the protection period."

since we meet after the contract expiration date. is the protection period still valid ?

Thanks

Ben

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Originally posted by George P.:

First and foremost, you didn't mention what your essential life goals are? Once determined, it'd be easier to make a decision on this one.
Second, there is a difference between 1200 and 1400/month rent. You might want to get the number.

to be honest, I am not sure exactly. I started having some interests to invest on real estate. If I do well, I'd like to have it as my full time job.

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Originally posted by Jeff Byrge:

I know you said you had just refinanced to the 15 yr, but you might think about refi-ing to a 30 yr. That would drop your payments by 300-ish/mo. That would provide a little cushion on the expenses and you wouldn't have to dip into your cash on hand to pay it off earlier.

I will consider that. I wish I knew this site when I did refinance, I would not have done that.

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Originally posted by Jim Stardust:

I'm in a similar boat though my numbers are not as tight as yours, not many people lease to own these days but I guess it depends on your area. The townhouse is likely (well, most likely) be a rope around your neck and it doesn't seem like there's a turnaround in the housing market anytime soon to expect a relief.

You're really underestimating your costs, that $1232 doesn't have the cost of insurance, possibly utilities, the 10-12% typical estimate for repairs and maintenance. The cost of vacancies and if you run into a bad tenant you need to evict, you're probably looking at an average of $1500-$1600 easy, can you afford to feed that "alligator" $300 a month, and if so for what reason, what's your goal?

Thanks Jim. you are right on the numbers. I do have money to feed it for a while, but I am not sure if it's the wrong thing to do. I don't think this house value will go up any time soon.

I have another crazy idea of paying it off sooner (say 3 years) so it will have positive cash flow. not sure if it's teh right move. If I sell now I will be losing money on this house for sure, not it's not easy to sell neither. If I work hard and get it paid off in 3 years, at lease I have 1 house without mortgage. will I be able to put these money and find better investement properties in this market, that's the research of doing now, and will probably help me make the decision.

as I continue to read similar posts, the number I have to most people it's a "sell".

Thanks for your reply

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Hi all,

So glad I found this website, I have been reading for the past few hours, and just so much to learn here. I am a newbie wanted to get into rental business. I have a townhouse I currently live in, and are looking to buy a bigger house for the growing family. I have refinanced 1 year ago and with a good rate at 3.75% for 15 years.
the numbers for the townhouse as follows

monthly mortage 949.03
property tax 123.23
HOA: $160
Total Cost monthly=1232.26

Expected Rent $1200-1400

By looking at the numbers, I will be lucky if I break even through out the year, but most likely going to have negative cashflow . Should I hold or sell this property, I have around $130000 left in the current mortgage and the house probably worth about $145000 most.

any suggestions will be appreciated.

Thanks

Ben

0 Votes

All Forum Posts by: Ben C

Ben C has started 16 posts and replied 35 times.

Post: can the Seller without paying realtor commision

Post: should I sell or rent?

Post: should I sell or rent?

Post: should I sell or rent?

Post: should I sell or rent?