All Forum Posts by: Anthony Foret

Yes thanks for the look over and comments on the deal.

@Michael Siekerka I like that link but a few of those listed seem to be commercial rentals or houses that are used in commercial areas. Regardless there is useful information there.

Averaging the first 5 years equity capture as $91 a month and adding to your math it comes out to 19% return.

Or should you not calculate the equity into the equation?

In our area over 40% of people rent. Looking at the local ads show very few houses available for rent.

As far as a list of repairs: the outside is in dire need of a paint job, some of the boards on the outside need to be replaced and others renailed, sheetrock work done in two rooms (a bedroom and the kitchen, the bathroom needs a new stall (I'm guessing that is what it is called) around the tub, and you can't see from the pictures but the right side of the kitchen window is missing cabinets. Contractor will build to match the other side and make the doors that are missing for all of them. I also want to build a wall/box in around the water heater.

The owner is throwing in the top cabinets he bought but never installed but I'm just going to put those up on Craig's list or something since they wouldn't match the bottom ones and are not needed.

Oh and of course repainting the inside.

Wife found the podcasts for this site last week and I have to say this place is great. I've been reading posts for the last few days and as my first post I would like to ask for opinions on my upcoming first investment.

http://www.usamls.net/houmalahomes/default.asp?mls_number=111989&content=expanded&this_format=0

2 bed, 1 bath

Starting asking price $65k (their appraised value)

Offered $62,500 (The best finance rate I found had a minimum financing of $50k.)

I had a cousin that is a general contractor inspect the house and found the maximum cost to get it rent ready was $4k and 4-5 days although I plan on doing some of the easier work myself (easy Sheetrock work, pressure washing the old paint off the outside, ext.) to help bring down some of that cost.

(My finance company is asking for an as repaired appraisal so I will see the value after the repairs are done.)

Monthly note including taxes an insurance: $407

I can cover the note myself with no problem if need be although that is obviously not what I'm hoping to need to do.

Expected rent $750-$850 as a BASIC 2 bedroom apartment goes for $700-$775 and high end ones for around $1100. This is also based on the side of town and being in a working class neighborhood.

Planning on a separate checking account with a starting balance of $2-3k and let it build up for a year or two to cover major expenses.

Property is less than 5 min drive from my house.

If any more information is needed to give me an opinion of the deal just let me know.