All Forum Posts by: Dwight Crocker

Originally posted by @Bob E.:

Maybe I missed something but it was not clear if the that payment included Taxes and insurance.  

If T&I are not included in the payment you are being charged @ 17.5% interest.  

At 8% you would have a mortgage payment of $240.23.  Buy it for that and resell with owner financing (Make sure your note does not include a due on sale clause) charge your buyer 5k down and 9.99% interest (Plus T&I) for 120 months and enjoy the $2,800 downpayment spread an $90 a month with no investment of yours.

Sell it for 35k and 10 years and your monthly check jumps to $156.06

or sell it for 35k and 15 years and you get @ $81.97 a month for 10 years then $322.20 for the last 5 years.

The payment includes PITI. I'm inclined to agree with your approach on this. If the seller will make a few concessions I might like this deal better.

Originally posted by @Michael Barbari:

@Dwight Crocker  Personally for me that is not enough income for the buy and hold. Have you thought about flipping it?

Sort of...

I've thought about getting the house and putting a renter in it, then painting the exterior and landscaping to give it some curb appeal.   After it looks better I can put it back on the market in the late Spring and see if I get any takers.  If nothing else I could just keep renting it or do a lease option.

I just wanted to share an offer I had from a seller. The total sales price is $22,000 which is a fair deal for this small town in northeast Texas. Down payment is $2,200 with payments of $348.45 for 10 years. I assume the payment includes PITI but I have not heard back from my last email on that subject.

The house is and older 2/1 that has some deferred maintenance but could be ready to rent quickly.  Rents for a two bedroom is this town range from $450 on the low end to $600 on the high side.  This house looks like a $500 house unless you allow pets which would get you to $550 - $600.

Here is the link to the craigslist posting.    http://texoma.craigslist.org/reo/4799066649.html

I'm not "chopping at the bit" to get this deal but I wanted to see what others thought.

If the ARV is $130k and your purchase and rehab are $60 you should have no trouble finding a hard money loan. Give your hard money guys a call and see what they think of the deal. The few I have dealt with we're really knowledgeable about what was happening in our market. Good luck.

 Coating an existing SPF roof is fairly straightforward. Clean the surface good, then  make spot repairs, and finally apply a healthy  elastomeric coating on top.  A potential difficulty is moisture accumulation below the surface of an older foam roofs so make sure it is dry 1st.   Re-coating with new foam isn't worth the $.   It's not a complicated job so you should be able to re-coat for much less than $4,000.

A half decent carpenter can build the cabinets and drawers in a day.  Then you could buy the doors and drawer fronts from a surplus building supply store and stain or paint to your liking.

Thank you for all the kind words and I liked seeing some owner finance information.  I wanted to follow up with where the deal came from.  I was just looking at all the housing sections on craigslist in my part of Texas.  The seller posted the ad Wed. for $4,000 MH and lot  around 10pm and I saw it about 30 min. later and emailed him a lowball offer figuring the home must be ready for the landfill.  He texted me back around 11:30 but I had already hit the sack.  In the morning I shot him a text back and he responded.  I called him on the way to work and we worked out a deal over the phone by which I mean I agreed to his asking price.  I went on line and checked out the taxes and any liens it might have.  I emailed him the paperwork Friday to get notarized.  We met Saturday to inspect the property and finish up the paperwork.   The deed is in the mail to the courthouse and I've got the keys.

Originally posted by @Mark Freeman:

@Dwight Crocker

I wish I could find that cheap of property here! I wonder if you could rent it for more money if you got that many calls that fast? Nice job.

 There isn't a lot of $ running around Wichita Falls so I wasn't sure what to expect.  I'll slowly bump it up over the next few lease cycles and see what happens.

My other thought was, at this price who would want to ever leave.  I has one house several years ago where the first tenant that moved in was there for the full ten years it took to pay off the mortgage.  

I'll still go ahead slowly raise the rent in small $10 - $15 increments.  I'm guessing  that amount won't be enough to make anyone want to move.

Head north to the suburbs.  The best school districts are on the North side of the Houston area.  If you want to stay close to the water though Kema to the south might be a good alternative.

My wife hates MH's but for $4,000 who cares...lol  I put an ad on CL for $285/month  and had 9 phone calls by 2pm.   The MH is an older model and is in fair condition.   The value is really in the land though.  I could give the MH away and just rent the lot for $200 - $250.   For now I'll take the $285 and see how my new tenant works out.