All Forum Posts by: Jose Leon III

@Doug Karkow That is a phenomenal idea to call the deed holder's name I plan to give her a call today. Regarding managing the property myself. I live close enough that I think I could, but it would be a learning curve on my part on placing tenants. Do you have experience with placing tenants yourself, or any sites that you use to find good renters? Considering this is my first deal, who would I go to in order to actually close the deal/the legal paperwork of signing the deed over? Is it a realtor, banker, or can it be done without a middleman?

@Jay Kadlec If I were to do the home inspection contingency, I assume that cost still falls on my part of the contract is that correct?

Thank you both for your insights!

Hi @Christopher Derr,

Thank you for the property taxes. That number is much closer to what realtor.com was giving me. How did you find your tax number?

The Beacon site, is great. A lot more information there. Will be using it in the future for sure.

Agreed, I also fear the condition of the home. 1 picture is not a good sign. I have reached out to home inspector who will do a complete home inspection for $325. Before going forward I want to spend some more time just looking at other opportunities. 

@Jacques Cyr I recently had an internship in Michigan, beautiful state! Spent a lot of time in the Rochester Hills, and Cadillac areas.

Ok, thank you for your great advice. I have since taken the time to learn a bit more about the property taxes, and from what I can find the Woodbury County area of Iowa charges 1.667% of market value yearly. Coming out to $96 a month. I wasn't able to find anything that related to non-homestead property tax. 

Got in contact with a home inspector, who gave an estimate of $325 of a home inspection. Does this seem reasonable in your experience?

In my area the property managers are wanting 8-10% of the rent. Seems like a lot to me, but given that this is a single family home I understand that they want it to be worth their time.

I'll send you a PM so I can share the current spread sheet with you. Once again thank you for your time, and insights.

Really feel like this is a great deal, and after talking to a real estate agent in this area, they said that the tenant vacancy rate in this area is 5%. So based on the information I feel like this might be a great deal, but I'm hesitant to take advantage of it. Because I would need financing, and I also don't have a stable job quite yet. (still in the last year of school).

Been trying to learn more about real estate and get some practice analyzing deals. Recently found this piece of property selling at $31 per Sq foot. Its at $69k for the property, other homes in the area are going for 100k+ and 50+ per square foot.

Based on some monthly payment calculators (using 3.34% as interest rate) its coming out to $537 at 15-yr fixed. Or $389 at 30-yr fixed.

Comparing another property in the same neighborhood (literally same street), and the same number of beds, with less sq feet in the house, it is going for 110K (see link)

According to rentometer.com, rent in the SC area goes for about 1095 median, within a 2 mile radius.

I have also contacted two local realtors to get their estimates on rent/tenant vacancy/quality of the neighborhood/likelihood of appreciation.

Link to the potential deal:

https://www.realtor.com/realestateandhomes-detail/117-Gilman-Ter_Sioux-City_IA_51104_M70768-05388

Comparision house:

https://www.realtor.com/realestateandhomes-detail/111-Gilman-Ter_Sioux-City_IA_51104_M82306-07607

renotmeter.com stats on the area:

https://www.rentometer.com/analysis/4-bed/gilman-ter-sioux-city-iowa-51104/V9i93dQNx2g


What are your thoughts?