All Forum Posts by: KYLE W.

@Mike McCarthy

Right on, I'll do that. I'm hoping so! Thanks for the inputs Mike. 

@Amy Beth

Awesome, thanks Amy. That's what I want to do. The renovation looks a little scary.

@John Leavelle Howdy John. That's a good comment (1), I will seek that info out. I'm betting there are more repairs than I think(2).

Good opinion, I agree. Thank you for your comments!

@Jim Cummings Thank you for the kind welcome, Sir. And your comments make sense. I will see what I can find out Monday. We drove by the place yesterday, looks like central air might be an issue. Also looks like current renters are buried under a mountain of stuff, including an old classic car, which tells me they're not wanting to leave anytime soon.

Hi everyone,

I'm still very green at this and haven't done a deal yet so bear with me and my limited info at the moment, but I wanted to get some initial thoughts on these numbers. My realtor told me this one a day after we first talked, so I'm a little overwhelmed and wondering what questions I should be asking.

Numbers are $165k 2br2ba in a pretty good location of Central Texas, currently rents for $1700 (1% rule) "it needs some work or can keep the tenant. Homes that size typically sell between $275-300k in that area."  This rent is $400 higher than the median for the area.

At first I like the idea of keeping the tenant - I'm not sure I'm 100% prepared yet to do a reno, but I think I could make it happen, probably just scared. I live about 20 minutes away, I know a really good and cheap carpenter who also knows a bunch of contractors. 

So obviously wondering about the price tag for the reno work. What questions would you guys have for the realtor?

Thank you Aaron! Man, we're getting unanimous around here! I feel like I've been missing the forest for the trees :S

Thank you for your inputs Ryan and Redgy!

Awesome response Marc, thank you Sir. You guys are reinforcing my gut feeling here. Thank you so much. I really appreciate hearing other intelligent folks' opinions. Looking forward to posting more on this forum! 

Brent, 

Thanks for your replies.

It's because the land and house will likely appraise for over $400k, and purchase price is $260k. That's the "on the face." I get what you're saying though. Thanks again.

Hi Roy,

Thank you for your comments.

The property is owned by a trust of elders in the family, basically 6 siblings, with one of the siblings who is in charge of all this.

The in-laws tenancy will likely just be verbal, seems that's how everyone wants it. The most that would probably happen is we don't go to a lawyer, we just write out the terms on a piece of paper before hand so that there's no dispute down the line.

The vendor is not considering any other options at this point. He has agreed to hold the property at the price for us for another year or two, hoping that the in-laws will get their finances in order. Obviously, everything is geared positively towards them.

Your second to last paragraph you wrote is why I'm looking at other options. It's so awkward, especially when the banks get involved.

My wife and I will be running a business from the land, a home day-care. But we're doing that either way. And we're growing an orchard, either way. But both options we can't really throw ourselves into without more permanent commitments. So yes, we are expecting to make a bit more off of the land if we buy it.