All Forum Posts by: Josh Clemence

I love low price point houses. Try to buy at no more than 18,000 for a 3/1.

They cash flow great, and if you buy right the rehabs are not to bad.

Josh

Joseph,

During High School and College I did a lot of construction work, but the majority of the stuff, I have taught myself. Do you know the basics? If so, then you can teach yourself by doing the following. Figure out what project you want to do, start small, do a google search on the topic, and you will find a bunch of how-to's. Print some of those off, go to your local home improvement store, and start looking around and asking question of the people in the store. They will help, typically a local hardware/lumber yard can answer quetions better, but they don't have the selection. Buy the materials and get started. Take your time, and don't move on to the second step until the first one is right. Don't worry if you mess it up, just go buy some more materials and start over.

That is how I learned most of the stuff I know. Once you know how to find the informaiton you need, there are lots of projects you can do.

Josh

If you put your income #'s in Years, then you need to put all the expense #'s in years as well. The insurance and property tax #'s seem really low. Call an agent and get a quote on the insurance, it is probably around $50 month. Not sure about your property taxes, but they just about have to be higher then $68 a year.

Beside that, the gross income is only $140 mo. at 1680 total for the year. That is not even enough to cover the debt service.

While I am still new at this, it doesn't sound like there is much room in this deal. Actually, you would lose money on this deal. One of the first things I learned on this site, is don't fall in love with the house, fall in love with the deal. Either it is a good deal or it isn't!!!

If it would be worth 230,000 ARV then you should pay no more than 70% of that number.

I am by no means an expert, so I would get more advice from others.

Josh