All Forum Posts by: Paul Nagy

Looking more and more as if this is a decent, not great deal. Anyone else agree/disagree?

Thx.

Hi Mark ad thx for the reply,

I was planning on holding it as a rental for 10-15 years.

Hello everyone! I've entered into a contract to purchase a 3 bd, 1.5 bth 1600 square foot HUD foreclosure in Blue Springs, MO (middle class suburb of KC) for $49,500 CASH. The home needs approximately $30k worth of rehab and will rent for $950. Taxes are $1600 per year and insurance is $1200 per year. The house is in a good neighborhood on a cul de sac street. After repair value will be $110,000.

However, I originally thought rehab costs would be $15-$20k and now I'm starting to get cold feet with the idea of parting with $80,000 of my own cash.

Do I have a great deal or should I forfeit my $500 earnest deposit and walk away and continue looking?

Thank you very much everyone, much appreciated!

Paul~

Hi Gerald, I've always liked mid-sized midwestern/southern college towns that double as state capitals. They are also usually affordable with good rents.Example: Lincoln, Nebraska; Madison, Wisconsin; Tallahassee, Florida; Baton Rouge, Louisiana, etc.

Other good ones are Iowa City IA; Gainesville, FL; Columbia MO and Tempe, AZ.

Hope this helps!

Hello everyone! Does anyone have any experience or advice on the Home Depot whole house carpet install for $39.00? I'm looking to do builders grade (or just slightly better) on 3 bedrooms and stairs and this seems to be a good deal.

Thx!

I'm leaning towards putting on a new roof and paying off the 2nd mortgage (Elizabeth Colgrove "down payment".) Then after that I'll refi into a 30 year conventional fixed and even if the rate is 5.25% I'll still be saving money.

No reason to sell it and lose $40,000 when by putting in $50k I'll be cash flow positive.

By the way, the property does not have "serious maintenance issues." It simply needs a new roof and in the next few years new windows. And I'm assuming new carpet after the family of 5 moves out simply because it will have been in use for over 6 years. But who knows, maybe it can be cleaned and stretched!

Just a math problem/dilemma...

Moving in can't be done for a few reasons; the home is in a different city 55 miles away, it is occupied with good tenants who have been there for 5 years, and finally being a single guy I don't need to live in a 5 bedroom 3800 square foot house!

Hello everyone! I've got a single family home that I've owned and rented since the beginning of 2007. It is in a nice upper middle class suburb of Kansas City. When I bought this property I had absolutely no idea what I was doing and in hindsight I never would have purchased this property. However, he we are!

I bought the home no money down with with 2 interest only loans. The first loan is at 6.75% and is for $210k with the payment being $1,675 and the second loan is at 9.75% and is for $52k with the payment being $475 for a total monthly payment of $2,150, yet rent is only $1,995 so I am negative $155 every month. Both loans are with Citi Mortgage.

I currently own 3 other rental properties and over time would like to purchase more. What I would like to do is pay off the 2nd mortgage which would have been the same as making a 20% down payment from the beginning. This would also make it that much easier for me to then refinance the 1st mortgage is saving me even more money. I figure refinancing the 1st mortgage would save me around $150 per month at least. This would allow me to be cash flow positive.

Selling is not an option because the property is only worth about what I paid for it but to be sellable (as opposed to rentable) it will need about $40,000 in work (roof, flooring, windows, etc.)

Thanks everyone in advance, much appreciated!

Update - After much back and forth with the seller they have given their final counter of $129,100. The most I wanted to spend was $125k but the numbers say this is still a good deal considering both units combined bring in $1,500 per month.

Any thoughts or advice?

Thanks!

@william

Tenants pay all utilities including water

Down payment will be $25,000 plus $2,000 for closing costs - total cash needed is $27,000

No property management as I will self-manage

NOT a college town, a middle class suburb

Thanks and hope this helps!