All Forum Posts by: Michael Jenx

@NicholasLohr

Thanks very much for the insight.
I saw that a year or so ago it sold for $130k, and now is at $85k.
I will be careful not evaluate about fix costs, once I can get better pics from the listing agent

Could I use the last sold price  and Foreclosure price difference plus the cost to repair( out of my pocket, as cash, not loaned) as a measure of AVR? Say $110k is my AVR ?

Hi friends. Newbie here. Reading and reading and trying to soak it all up from all of you.

Need sincere advice on my first investment. Here is the info:

-Foreclosure for $85,000, 3 Bdrm 2 Bath, 1200 Sq feet, Lot 7,000 sq ft, detached 2-car garage,1945 built.
(Roughly $80/sqft price)

-Small town with 12,000 Population. Good schools, nice clean town.
-Taxes $600/year, no HOA

I will put down 20% ( $17,000) and do some basic fixes ( maybe carpet and paint total about $4,000)

Rents appear to average at $900-$950/pm. Snowfall is 60inches annual.

The BP calculator had me at 20% cash on cash and $420 positive cashflow. I assumed a 10% vacancy and 5% repairs. I assumed $3,000 closing costs

My main fear is not being able to rent it. 

Would really welcome any feedback, to avoid me getting myself in a mess. ( I also live in another state, so I would need to fly in. I'm hoping to self manage(no prop management company). There is a small Airbnb opportunity due to hunting in the area, but I would think a good long-term renter is the goal.

Thanks in advance.

-Mike

Hi,

Newbie here. Literally found the site whilst researching Ramsey vs Kiwosaki about DEBT.

I am self employed, as a business and product consultant, my income is wildly unstable. Some good months, some slow months.

My credit is excellent.

Question :

Based on the above, is it possible to begin investing with say $15,000 as a down payment ( I'm thinking of using my 401k/IRA) ?

The question is about the ATR/Ability to repay requirement on a loan, as well as a TIMING question.

I live in Orange County/ SB county ( southern California).

Is this market too hot to start, and should I wait for prices to drop? 

I was thinking about a small fixer upper townhouse to rehab and rent.

Wise advice appreciated.

I'm sad that I found out about Kiwosaki only a week ago, and this mindset of making money work for you, via real estate rentals.. and in my mid40s have lost a lot of time and missed the bargains of 2011. Hoping to catch up.

Michael J.