All Forum Posts by: Ian K Laszlo

 $1500 per year is possible with the current tenants, but I don't think that income is sustainable or fair market wise. I doubt I can get new tenant to agree to that rent. The current tenants were paying way below market rate at $900/month split between the three of them. 

You're correct. The cost of maintenance, capex and vacancies would be more that $100 set aside. I guess my problem is cash flow never being enough. I'm not sure how people run into deals being a first time landlords with 4k yearly cash flow to start after every expense considered.  

Problem is It might not be the best time to plant tree (today), somehow I feel in 2 years I might regret that. Will never know until then. 

Greetings,

I'm looking at a house selling at 136k. It's owned by a landlord who is occupied by three tenants who are serious on staying/renting.  Seller agreed on selling house for 128k. This house is not listed on market, and the seller is trying to work with me the best they can. 
I like the tenants, they're all clear money wise and lived at the house for three years. 

Best loan I could acquire is 6.8% at around $1150 a month. I'm considering covering the closing cost by loan making the total mortgage around 134k. 

Rent would be $1350 a month split by three people being $450/person/month. Renter pay utilities. 

House is great shape with only minor paint/drywall dmg. Otherwise very nice. Three bedroom, 2 bathroom. Renovated basement. Foundation/electrical good. City water and sewer. New roof, hot water tank and furnace. Decent two car garage with a fenced in backyard. 

Down payment $4500
Yearly cashflow $2400
That would be 54% return on my money.

If I took off $100 a month for the common repair, cashflow would be $1800 = still a 40% ROI

Me: I have good credit (750).  I live in a very small home currently owned and paid off. (1000sqft) No debt. I got a little over a years income saved. 

 I've been looking at houses since 2020 when I was preapproved for a 3.5% interest rate. I didn't buy than, which I do regret considering the rising expense in housing and mortgages. Now I have the opportunity to buy in my opinion a nice property. I can not find something like this house at this price $128k no where near me. It's all $150k+ and in massive need of repair. 

My goal is to rent this house out for the foreseeable future, then if I develop the need for more space (stating a family) I can move into this house. This could be a couple years from now. If loans go down, I refinance. If they go up than I'm grateful I bought when I did. 

 It scares me to think that if I don't buy this house I will somehow be locked out of homeownership. (just a fear; worst case scenario) Which is a big deal to me considering I can't live with anyone in my current house. Unless I sold and lived in some 2 bedroom paying renting, which I'd like to avoid. 

What are your thoughts ? Is this a bad idea? 

 I heard about that in Austinburg OH. Crazy they force you to do that.

The area it's in I'd consider strange to have septic as all around city hook up is the norm. 

If I hold this house for 7 years, than rent it for 10, I'm hoping it last before resale. 

I believe the house is built in 1960 which means it's probably 60 years old. 

77 years to me sounds crazy long for anything to NOT erode in the ground holding water. When it does need fix it's crazy expensive.

Gettings

Looking for a 2 bedroom 1 bath 2 car garage to live for the next 7 years and than convert to a rental. It's just me and my girlfriend. 

Orginally the house was listed for 105k, than 95k,  we offered informally 80k, owner said she take it. Didn't want to put in an offer officially until I did some research. 

House is small it has everything new. Leach pipes from septic, new electric, windows have been replaced in last five years, flooring. Comes with some nice furniture and AC. The owner grew up in this house and rented it for 10 years it's been on market for 4 weeks she doesn't want it no more, wants it gone.

The downside to me the garage isn't really the space I wanted to be it's a one car and roof needs done on it and even tho it's city water, it's on septic. 

How long does a septic tank last before it completely needs to be replaced? 

I imagine a tenant flushing down chemicals and other things that's is going to ruin the whole system seems like a recipe for disaster. 

I might put it in an offer for 70k but even then we're dealing with a small 2-bedroom house. Not sure yet. 

Greetings.

I'm new to real estate with a question regarding LLC. Currently, I'm getting ready to buy my first property wondering if I should get an LLC. What I was told is you don't need one until you generate some serious wealth. Additionally, I will have to appoint a lawyer to handle anything legal, even evicting a tenant. The extra legal fees toward something I'd learn to handle myself doesn't sound attractive.

This advice was given to me by my neighbor who has over 10 properties. They stressed the annoyance in extra legal work for both time and money. 

What do you think I should do? 

 Not yet. He took out a loan against the house to fix the roof, also had some credit debt. Were looking to clear it by April. Hopefully. 

Greetings. I'm new to this forum. Good to be here. Looking for info.

My uncle past away seven months ago and my mother is giving me the option to buy his home. I was told they can sell the house to me without getting a bank involved. Supposedly, my aunt and mom would function as the bank, and I pay them monthly until the house is properly mine.  I don't need a down payment, and interest is negotiable.  Naturally we'd speak to an attorney to finalize our agreement in paper. 

Sorry for the newbie question, what would you call this type of transaction? I'm trying to research it yet I don't know what this is called. Anybody have experience in the matter?