All Forum Posts by: Mary P.

@Account Closed Thank you so much for your input! I will dig into this info more. I appreciate your help!

Our property is paid off and we're considering selling and offering to finance. What's a reasonable interest rate to charge? Is there a formula - like prime + X%?

Input is appreciated! Thank you.

Great - thank you! Yes -the closing costs would be higher except I think our credit union has lower costs and I will look into it. I'm not sure of the ARV - more research to be done...I appreciate your input @Tchaka Owen

Hi, We keep analyzing houses, but I'm just not sure the numbers are making sense. If anyone knows a resource for more detailed explanation on how to use these calculators, I would appreciate some direction. I've searched but haven't seen that yet.

If you have a moment to give some feedback, we'd appreciate it!!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Ryan Detig - good points and I was thinking that something we can pay cash for might be a good deal. I will go back and rethink this with your comments in mind. Very good points about the HVAC etc. being a big percentage of the profits. Thank you!

@Ben Wilkins Thank you for your input. Ok- the meth lab was a comment from my husband, and of course, this could happen in lots of places. I will be looking at the NOI and think about your comments.

I'll keep you posted!

Hello, I appreciate any input here!

My husband and I looked at a small house today. 

The good - it's 20k and there's a renter in there for $410 per month. Structure of the house looks good. They'd like to keep him in there.

The bad - it's filthy. The area is a little sketchy but not the worst- very near a good area but not a great area either (for that amount, wouldn't expect a great location)

Not sure about - The renter is legally blind, has lived there for over 20 years and gets disability. He's never been late or missed a payment. Owner is selling because he's going into a home (his son is handling the sale) and they want someone who will buy the property and keep the renter in there.  They're going to be doing some cleanup work on the house this week so we will go back and see how it looks. Part of the filth due to a single guy living there who can't see. 

On the surface, it looks like a fabulous ROI - even fits the 2% rule.

Concerns:

I am worried about adopting a person - I need to find out what happens if the renter gets sick, etc. - Does he have people to take care of him or did that fall on the landlord in the past? (Doesn't seem like it did and he's quite independent.)

What if a distant relative of the renter comes in and starts a meth lab?

What if, what if, what if...

Finances - we can pay cash for this property and have no mortgage or interest, etc. Does that seem like the best way to go? Would you pay cash or finance part of it? and why?

Obviously, the best case scenario is we buy it, he pays rent faithfully for the next 5-10 years and then we sell it to someone else who will take him on. I do think he wants to live the rest of his life in this house.

The owner is a good person who has owned a home improvement company for many years. The son said the renter never called him for anything and so he hadn't realized how dirty the house was until he went in to see it to sell it. They intend to do some cleaning and replace carpets and some other things before they sell.

Any thoughts or advice are greatly appreciated!!!

Robert Ellis - I am curious if you've decided what to do. Would you mind sharing the manufacturer of your prefab house? I'm sorry I can't give you any advice as I am brand new to all of this. We are considering subdividing the lot our primary residence is on and building a duplex next door. We're also looking into adding a garage with an apartment at the back of the lot, as our neighborhood seems to be in high demand these days.

@Jason Yarusi I emailed you :-)

@Alex Babayev - beautiful job, and very inspiring - congratulations!  Can you share some more details or photos of the additional bed/bath you added? Thank you!

Hello @John Leavelle - yes and/or no. I don't mean to be evasive, or dumb (that just comes from not knowing what the heck I'm doing). It's possible we would purchase the big house to live in, but I'm intrigued by the possibilities of the small gutted house.

I appreciate your input - I will research comps and find out what the ARV is, I'd love to do buy and hold, but flipping and getting some cash is also attractive at this stage.

I need to gain some confidence in analyzing properties. I love that there are these great calculators on BP, but they can only give me answers that are as good as the data I put in...sigh. Big learning curve, but I'm up for the challenge :-)