All Forum Posts by: Account Closed

Looks awesome, nice work as usual!  Are you not putting appliances in this one or just haven't got them yet?

So with a 120k valuation on the property, what do you think of the deal?

The property comps at around 120k. I will use that to determine ROI in terms of equity and appreciation. Thanks for the reply.

Well the property has been listed for 3 months now, I am guessing I am not the first person the listing agent has given this information to.  No one has offered the minimum amount yet which is why the property is still sitting. 

And yes, I am getting comps tonight.

I submitted an offer on a property in the low 60's; it is a short sale and the listing agent came back and said the bank has approved a sale price between 76-90k.  So 76k is the bottom line I guess.  She said they have had multiple offers in the 60's already, so I am guessing other investors see the value in the property and my initial offer was good.  The property is in a B area, with C schools, its 3 bed 1.5 bath, 1200 sqft, 2 story, garage, no basement, it is in need of some moderate rehab (exterior wood repair, garage door, flooring, paint, bathroom tile, roof sooner than later, etc)

If I were to buy at 76k that drops my ROI by about 4% a year. Here are what the numbers look like at 76k:

Purchase Price: $76,000

20% Down Payment: $15,200 

Closing costs: $4,000 (estimate)

Rehab Costs: $11,500 (could be less)

Mortgage Payment: $300

Gross Monthly Rent: $1250 

Cash Flow: $325 (using 50% rule).

ROI: (325*12) / (15,200+4000+11,500) = 12.7%

Zillow says the property is worth 130k, I am getting comps pulled as well.

Just wanted to get some opinions on this, its getting harder and harder to find deals out there that are in good areas.  It would also be nice to lock in some low interest debt before rates inevitably rise.  

Wondering if I just have to bite the bullet and pay more or keep hunting.  Thanks for your time.

I think your only other option would to be to take the tenants to small claims court and try to sue them for the damages. 

If a tenant signs a lease and during that lease agreement decides to get a roommate, do you terminate the lease agreement and sign a new agreement with both roommates? In my lease, it states that the premise only be occupied by the family members the tenant lists.

I ask because I am about to sign a lease with a tenant in which I lowered the monthly rent for the individual to meet their budget, however come to find out they may end up having a roommate sometime down the road. If this happens I would obviously want to increase the rent back to the original amount since they would now be splitting the costs.

Thoughts?

From what I understand the first time home buyers tax credit is 10% (up to $8,000) of the purchase price of the home. I don't think extra costs for repairs whether the money is used out of pocket or used from a loan has any bearing.

A $40,000 home renting for $500 a month does not sound too appealing to me.

Are all the rents in your area this low?

Come to Michigan we could use the tourism dollars....plus there are some nice spots up here!