All Forum Posts by: Gail W.

@Tchaka Owen. The rent in this market I think will be around $550. It is in a small town, (population 650) but I have already had a good bit of interest in the house. Thanks for your response.

@Angie 

@Angie Shires. Thank you for your response. I bought the house off market. a co worker of my wife told us about it. The lady who owned it was trying to rehab it herself. I told her I would buy it just like it was. She left the material she had already bought. I was a little arrogant I think in believing I didn't need an inspection. 

I have just completed my first deal on a SFH. I own some land but have never had a house before. Here's the way the deal worked, I paid $30000 for a house that was supposed to be partly rehabbed. My budget was for $5000 for rehab. That didnt work out so well I spent $7200. There were a few things that I discovered in the process of rehabbing. One leg was bad in the disconnect and half the breaker panel was dead. Also the water heater leaked, which caused me to not only replace the water heater, but to also replace the brand new floor in the utility room that the previous owner had installed. luckily I was able to complete all the work myself saving labor. The house appraised for $44000 so I am not losing equity on the deal and when I get it rented it will cash flow. I refinanced $30000 leaving $7200 in the deal. With the proceeds from the mortgage I am looking for another property. I dont feel too bad about the deal because I've learned alot so far, more to come I am sure. I feel like I am knowledgeable enough when it comes to the rehab. My question is how do I learn to see the things that are hidden in a casual walk through, or do I just try to allow for those things somehow?

If you are like me you will need a first aid kit. 

@Trey Burns I do Know the owner quite well, my wife though says I am to trusting sometimes. The owner has inherited the property and has no interest renting real estate. Money does seem to bring out some bad in some people. Thank you for sharing your wisdom on money and the Gospel.

@Tim Herman Yes It will be 2 separate mortgages. Thank you for your response.

The owner says he doesnt want to raise the rent because he has a very good tenants. When I did a walk through the house was very clean and ordered and the tenant only had an hours notice. That being said I believe the market rental rate would be around $600.00 / month. Also the mortgage from the bank is $464. thats 6.25% for 20 years. The owner interest only payment is $53.33 for a total of $517.33. one other thing the tenants in the 3/2 have expressed an interest in buying the house, but they don't qualify yet.

     I am a new investor. I own one property that is cash flowing a small amount. I have had a package deal offered to me and after a bit of discussion the owner has offered a no money down deal. The owner will hold a note for 20% for 5 years at 4%, I will only need to pay the interest for the 5 years and then the note will come due. The bank has approved this arrangement and will loan the other 80%. I have appraisals for both properties. Property 1 is a 3 bedroom 2 bath in a good location, ( school across the street, 4 blocks from downtown) and good shape no known issues 5 year old roof new furnace and AC. Appraises for $60000. Property 2 is a 2 bedroom 1 bath in good condition in the worst part of town. Appraises for $28000. Both houses are rented for $500 a month. Price is $80000.  Taxes on property 1 are $1173, property 2 $724. The terms and the price look great but when I divide the two deals and analyze using $52000 for property 1 and $28000 for property 2, property 1 shows a slightly negative cash flow and property 2 is carrying the deal with a $240 monthly cash flow.  I am on the fence, I don't want a negative cash flow on any one unit starting out, even though my portfolio's cash flow will carry it, but the terms are, at least what I feel in my newbie condition outstanding. Any thoughts would be appreciated.