All Forum Posts by: Steve Foth

@Account Closed take a look at rentometer.com and see if you can narrow it down to your area. See what the current listings really are going for.

It really sounds to me like poor screening. I would look for another pm first of all and find out if that is the main problem. You won't know if you keep looking the other way and bleeding year after year.

So your current pm charges you only $450 for a new lease up..but you need a new tenant every 6 months... Wouldn't it be better to pay $600 to the pm and get a 1+ year tenant? Less turn over costs, and the lease ups would be far less frequent making the higher initial cost a significantly better deal.

@Taylor Tautges Thanks for your service and welcome to BP! I'm from Sheboygan myself. There's a ton to learn here, so make sure you watch as many podcasts and read as many articles as possible.

Our local sheriff seemed unsure as to the future of ccap entirely. I like how it is currently, but even with those removed it is still a valuable tool. Hopefully it never goes away.

@Brian Gibbons There haven't been many sales, so comps are tough. Closest are these:

Sept 2013 sold for 35k, listed 1 year prior for 19.5 and did not sell. No garage.

Oct 2013 sold for 49k.

I have not inquired about the existing financing.

Looks like 5 year based on his sample numbers.

There are many similar properties so it doesn't really stick out besides the seller financing option.

I've only see 3 duplex sold in the last 4 months and there are currently 7 listed. Nothing seems to be selling until after a large price drop on sf in the area as well. Lots of foreclosures still.

@Bill Jacobsen I can handle the negative cashflow, more of a mental issue than money.

I know it would cf right away with normal financing, but the seller offer looks good. Id like to take advantage of it.

Property will not cash flow right out of the gate due to the 5 yr term. I believe the property has been for sale for quite some time. Price is similar to a sfh currently listed in the neighborhood.

Rent here would gross $1000 monthly(only 2/1), so it would be cf negative for 5 years in both of the below scenarios. It is in a very unique area right off the lake where all the summer festivals are. With some updating, it could be more desirable and add another 100-150/door.

Land contract scenario would have some benefits as I begin building a portfolio. It was not really what I was looking for when I saw the property in the past, but seller financing has made me take a 2nd look.

Any thoughts, suggestions, etc would be greatly appreciated.

Seller finance terms:

Selling price of $49,000; $3,000 down; 5 year balloon mortgage - 6.5% interest. $750 monthly payment (includes $550 P&I and $200 for taxes and insurance. Balloon due at 60 months:$24,740

Other contract terms are available including full payoff over 5 years (about $1,100 per month).

I got 40gb on dropbox for getting a Samsung phone. I wasn't expecting it, but was a great perk!

@Steve A. If you are anything like me, I recommend getting into REI immediately. If you quit your job to focus on the marketing, that doesn't mean you will spend the additional 40 hours/week expanding the marketing and increasing your wealth.

I would use the potentially temporary income to get into real estate. Don't go blowing wads of cash on entertainment or increase your cost of living. Be frugal now, and invest it so you do not have to be careful later on. Get yourself to the point where you never have to worry about selling shoes or working a desk job ever again.

What happens if your cost of living increases with the increased cash flow(I'm sure it already has to an extent, you quit your job, but the marketing bonanza dries up? Look at pro athletes. They make millions and they go broke.

Take the money and invest it intelligently. Build into something you know will not go away.

3 of us went. 2 of us had done the numbers and knew that $5,000 was the max bid based on the amount of work that needed to be done. A 3rd seemed to know the guy selling and I believe did him a favor by instantly jumping to $7,000. That ended the bidding process as the place was simply not worth the money.

The house is still sitting completely untouched