All Forum Posts by: Patricia Newman

You could make some feral cats very happy!  Sorry, I couldn't resist!

I was looking a BP Pro membership and you can create a free Website with your Pro membership.  Check it out 'cause you can do lots of things with it to market your properties here at BP.

I'll probably go for the Pro membership when I get farther along and have a strategy for what I want to do - need to create my Wealth Building Business Strategy Plan.

Looks like your New Jersey BP friends are offering to help - I love BP!

Good Luck, Dan.  We're here to help you buy the RIGHT property and stay away for the money pits!

Patti

@Account Closed

 now I get it - whew!!!

@Wendy okay thanks, too!

Something to consider...buy it to live in it and rent YOUR home out.  Since your neighborhood is a good one, this could be a keeper for your long-term road to financial wealth.

Buy it using a FHA 203(k)? - rehab loan. This would be an owner-occupied loan. They would appraise the property and loan you the money for the rehab, so no out-of-pocket costs for you. Typically, 3.5% down plus closing costs (perhaps Seller would agree to pay these). Once the project is done and you are moved in, you can refinance it to get rid of the PMI and also freeing up cash for your next purchase.

Go to all Open Houses in your area - see how they are remodeled, purchase price, terms, etc.  You might also make connections with the realtors for possible other fixer-upper leads in your neighborhood.

Your properties are close to each other for simple property management by you - another added benefit.

Build your wealth slowly other time and you will be surprised how your net worth will grow.

Good Luck!

I would be fine with the eviction too.  Since he has a good track record of paying on time (checking his credit report), I would rent to him.  In fact, I did rent to a fellow in the same situation.  He had perfect credit other than his foreclosure.  He was a great tenant for 3 years until he met his girlfriend and moved in with her.

Scottsdale is a great area.  I would consider selling when you find your next property - maybe triplex or fourplex.  Then you can live in one unit for very little money allowing you to save money for your next investment.

First thing that comes to mind is $179,900 (his last listing price) less realtor fees (6%) brings it down to $169,106.  Let's just start here.

The 1% rule:  Quick rule of thumb is to take 1% of the purchase price = $1,691 to make a profitable cash flow.  If buying for $169,106, your cash flow would run 1.3% based on the $2,200/month rental income.  Just based on the "quick & dirty" analysis, it sounds like you might have a "cash cow" opportunity.  This would be an excellent property to keep in your real estate portfolio.

1) Taxes seem extremely high on the property - why?

2) What are the market rents for the area - check Craigslist, Postlets - he's had the property for almost 10 years and the rents might be extremely low (based on the extremely high property taxes).  Again, another reason to keep the property with huge potential to have higher rents.

I'm going to stop there and see what you think?

Patti

Check with the City's Planning Department.  What have they budgeted for 2015 that you could help them with?  Maybe it could be a park for everyone to enjoy or maybe just a parking lot - after demolition of course.