All Forum Posts by: Bill C

My wife and I bought a house for $20,000 cash in August. We have since dropped $10,000 into it. $7500 was new kitchen, 1/2 bath, wiring, master bedroom, insul, electric upgrade, etc. $2500 in travel and food. The current value is $42,000.
Taxes and insurance run $1100/yr.
Rent goes for $525 and should be ready in mid May.

What is my ROI and what would you do with the cash? We want to continue buying, and really like the paid off route.

We also have a contract on 4 houses, but are running into huge obstacles due to a bk over 2 years ago. The purchase price is $180,000. These 4 homes just appraised at a total of $240,000. We are trying to use the equity as a down, but so far 2 lenders want $50,000 down. One lender wants 1% cash and 5 yr fixed, ARM after that and use the equity of the 5 homes (the paid off rental included). I don't want to pull $50k due to a huge taxation from a beneficiary account. I'd like to think that I have an idea on how to do this, but I like training wheels. I'm sorry if this comes off as not making much sense, but I'm trying.

We're right over the 12 month period since it was closed, so we're going to have to wait to do any refi or loc deals on the house. After that, we're switching into high gear. ;)

Thanks for the reply. My wife and I were just discussing how the investment should work in the next year. The house should net a minimum of $4500 during a full occupancy year. Keep all the profits in the investment account, and at that time, run a line of credit against the house and use that to invest in 3 other similar properties. I'm open to any and all input. Thanks folks.

I was hoping for some input. Maybe I have this in the wrong topic area?

Ready for this one? :D I'll try to make this as short as possible, but not leave key items out.

A couple of years ago, we filed chapter 7, in October 2005. That was embarrasing enough. A month later, my father passed away and left a nice inheiritance. We tried to back out of it and pay it all off, but it was too late, we were in the system. It was discharged in April 2006. since then everything has been in cash everything on time or better. We have 2 credit cards, both with 0 balances, other than to buy gas, and pay it off in advance of the due date. We have a house payment, and a truck payment. Thats it.

We just refied the house, and that went fairly well, but trying to get a loan on "investment property" is nothing but brick walls for us. We put in an offer, was accepted, and now looking for a loan. Or are we? Its an SFR, 3/2, 2 level. Pretty much ready to rent when the current owner is out.
House $20,000
Taxes $340
Ins $ 800
Garbage $50
Add in your own misc maintenance.

Rent goes $550. If I stuck that $20k into a CD, it would never earn that return. Why not buy the property outright? The bad thing is that I won't be able to get a loan or line of credit until 2 years after the dischage date. Any helpful info out there? Pros and cons to cash sale? I won't get the interest writeoff, but the income makes up for that, or it should.

Hello everybody. Here is the first post, and happy and very nervous about entering our first contract today. We're opting on a small home that needs a decent rehab in a cute neighborhood. The exterior isn't in too bad shape, and the interior is going to take alot of weekends and sore muscles. The goal is to have it ready for rent in 4 months.