All Forum Posts by: Bobby Gillespie

Thanks Chris Tan, I appreciate the advice!

Wayne - thanks for taking the time to reply ..... is there a way to find out debts? I'm assuming not, unless recorded right?

Jay - thank you as well...... can you elaborate a little on this re the mortgage please?

As part of my learning process, I've watched my first live local county Real Estate Foreclosure sales auction.

I saw a 15year old house valued (via my local knowledge) at about $200k, sell for $135k.

If I were this buyer what are my risks from now on?

Is there the potential for HOA fees that are due, unpaid Property tax? Eviction potential?

I'm assuming the house could be in bad shape and need $ to bring up to saleable state.

What else am I missing?

I have been looking back at old auctions and observed what appears to be good deals... however, I know that's likely naïve of me!!!

Thanks Neil

I googled 'transferring the deeds to a child'... it gave me the impression that the only cost (to anyone) at the point of transfer was the just the fee for this transfer (about $250) and that tax wise if I sold it, I would have to pay capital gains tax on the difference between the original purchase price and the sale price... $120k less $220k = $100k. Does this sound right?

Yes I would pay my parents money, but that could be worked out less formally between myself and them I guess.

My parents, who are UK citizens are selling their vacation home in Orlando... near Disney.

If they transferred the deeds to me and I paid them, would this be ok... legal? If so, what consequences tax wise etc?

The house was bought for about $120k back in 1993 and is valued for about $210k now. I'd hope to offer them say $180k which would net them as much as they would get if they sold it the conventional way.

Thanks Matt & Jon....I am not well enough informed quite yet to have an exact strategy....... I'm working on that!

My original thought was to use $25k as a down payment on a $150k single family house or townhouse... with the goal of netting a little money and sitting on it for years to come. Execute this with the hope of repeating.

Are you suggesting that a great option is to use equity eg $150k cash to pay for such a property and then look to finance? If so, how?

So this is my first post as I venture into real estate investment... hi all! I feel enlightened joining up here and starting the learning process via the Podcasts and reading up.

I wanted to get the most basic of advise from you regarding financing.

I am lucky to have about $50k... but the unlucky part is that it's in England and in GBP with an exchange rate that sucks! So I'm thinking of leaving it for a while.

I also have our family house that has no mortgage ( value approx. $290k)... so I'm sitting on equity that's not earning much for me.

Originally, I was to convert the money and use it for the down payment on a 'good' deal locally to rent out. Instead, I may look to use the equity in my house to do the same. My theory is that I'll start slowly... buy 1 place to rent.. give it some time (a year) and then do the same again etc etc.

Would I want to get a line a credit type financing vs re-mortgaging and sitting on a chunk of money??

I'm in Tampa, Fl

Thanks

Yes thank you David.

I would say that it would be 90% rental and 10% personal use. Also, with what I'm looking at - 1 weeks rent potential covers 1 months mortgage, so even with the other costs, there should be a decent return on investment.

We are considering buying a vacation rental in St Thomas, USVI.

We currently have a house in Tampa, Fl. worth around $260k - with no mortgage... it was paid off in full back in 2008.

We do not have the cash in hand to put down the necessary 20%+ on this new purchase at this time, so understand that we can't get a mortgage of say 90-100%.

I'm assuming our best path (all things being equal) is to mortgage our current house to raise this deposit of say 30% and to have 2 mortgages.

Was hoping you guys could give some guidance