All Forum Posts by: Cliff Harrison

Thanks all.  It's a small one-story ranch 3/1/1 about 900 sq feet on a crawl space.

Hello all,

I have a rental purchase opportunity that is at a decent (not great) price compared to rent income (will cash flow positive) but inspection report came back with these scary pictures from the plumbing system.  I don't have much experience looking at old galvanized pipes (house is 1960).  Do all these older pipe sections need to be replaced ASAP if I buy this house?  I am thinking if I need to sink $3000 or more into these repairs it probably turns into a 'no'.  

Thanks for your inputs!

Cliff

What do you mean by 'skim the surface' of the old lino?

Welcome to BP - you don't live far from me.  I decided to start a couple months ago and am closing on two properties in February, with three more in the works (all in MO).   Spent first several weeks reading info on this site, researching the local areas, population trends, and searching for deals.  I plan to buy-and-hold primarily but am looking closely at two nice flip opportunities which will fund a couple more down payments on SFRs.  Good luck in 2015.

Thanks for posting this.  Had a good laugh.

The tenant will be responsible for utilities, lawn, snow.

I don't have a number for the insurance.  I can probably get it from the owner.

Wife does work but only part-time. She does something she likes but it isn't that much annual income.  

Good tip on the PM contract, will watch for that.

The market value of the property is about $72k based on two comps and my realtor opinion.  I offered lower (of course) to begin with but 65 seems to be the best and final. 

thanks for your time.

Hi All,

I am new here on BP but have been lurking and learning for a couple of months.  Ready to get started on some deals and frankly tap into all the expertise and wisdom that I've seen so freely offered on these forums.  I know I am not going to present the information efficiently here so forgive me for that.

Myself:

My goals are to build a performing buy-and-hold inventory to create an additional (modest) income stream and build up equity to tap into for retirement.  Mid-40s.  Gainfully employed in the IT sector for 20 years.  Free and clear on my primary residence.  Married with kids.  Hello!  :)  Plan to use professional property management and a general contractor on rehabs.   Looking at turnkey also.  Financially no concerns about my current situation or kids college, etc.  

THIS DEAL:

Location: Far South KCMO (south of 435) nice quiet neighborhood.  I would call it a solid B area.

PROPERTY: SFR 3/1.5/1 1050sqft 1960s construction in nice condition, basically move-in-ready. It's owned by an older landlord who has decided to sell instead of rent it out again. He's lived near the house and has kept it up very well. Vinyl siding and windows.

Projected Rent: $925

Vacancy: 8%  

PM:  Yes, outsourced

Price: $65,000

Taxes: $1205

Financing: 

25% down using a primary residence home equity loan at 60% LTV I just closed at 3.25% for 15 years

75% investment property mortgage at 4.25% for 30 years

Other:  I plan to acquire more properties (up to 10 as that is what my lender is good for), and I prefer to spend a little more and earn a little less margin as needed to have quality tenants, although obv there is no guarantee.  If the next 9 deals are similar to this one, my home equity loan should cover all the down payments needed.  Then I will get one property paid off with cash flow (hopefully!) and add another, etc.

Does this seem like a good deal to start off with?

I know I need to get umbrella insurance for myself and find a great property management company.  But any other tips to take care of on the first property (establishing the business) feel free to mention or link to the posts. 

regards and Happy Holidays,

Cliff

bump.

@Chris Dawson I'm new on BP and getting a start in the biz in Johnson County.  Can you send me your list of contacts?  Much appreciated.

Cliff Harrison