All Forum Posts by: Kerry M.

Charles, the rental market is 1375/semester without utilities per renter for a similar home in a location closer to campus. I was thinking 275/renter plus utilities with 2-4 max renters. I do not have a good grasp of the rentable value yet.

Charles, I appreciate it. Yes, we are buying with cash as a loan from our retirement and financing the repairs with unsecured credit. (We have good credit, but I know it is expensive at 9%.) We want to refi after 6 months or do a HELOC, if possible, to repay the retirement and unsecured loan. I can afford an average cost of $750/mo for the next 3 years but beyond that I am not sure.
The amount of repairs is larger than we thought before having the home inspected.

Thank you, K. Marie. My first goal is housing for my children. I have a high school senior, HS junior, HS freshman, 6th grader and a 20 year old finishing his second semester of local college after joining the National Guard. Renting to others is important but can't be implemented until enough repairs are made. I would keep it beyond my kids being in college as long as it were profitable to manage from afar.

1920 HUD former duplex 4/2 for $26K in a college town where 3/1 prices average in the 70's. Our contract date is 3rd week in April. The list of what needs repairs is long. Needs new plumbing on one side, including replacing truss under soaked and unsafe upstairs bath. Ceilings water damaged, water from damaged roof, old un-taken care of chimneys, bad flashing, unsealed nails. Radiator burst two years ago on upper level. Uninhabited since then (foreclosure.) Visible mold in at least two spots. Small (probably) asbestos found in crawl space. Lead paint probably and chipped. Electricity functional but numerous errors. Unsafe wood burning unit, could be fixed. Cracks in foundation and shifting in porch add-on foundation. Appliances work.
Beautiful structure of hardwood floors, layout, windows, and location. Safe neighborhood, within biking distance of college and most of all - free and experienced labor.
Appraisal says $40K. 2700 square feet. Plan on 10-20K material costs, including new heating system, hot water heater and gutter repairs. Paying with loan from IRA. I have four children in or about to enter college. The property would be student housing and rental. Thinking about titling in an LLC.
If not for the timeliness of college, I would not pick this as an investment. But if I strive for it to be safe #1, and to be in sellable condition within a year but absolutely within 5 years, I have a return of more than 100% of my money, considering the costs saved for room and board. I appreciate all replies.

Thank you for your response. Is there any problem with insurance (one of the persons on the title will be living there, although we are buying it as an investor)? Liability if we have a balloon policy?
We are buying the home as a less expensive student housing for family members while in college. Also plan to use it as a rental. Appreciate all comments.

We have a signed contract with HUD. Home inspection found (probable) asbestos (less than 3 square feet) in non-habitable 4' crawl area/basement. Home built in 1920. Will they remove it for us? Will this delay the deal more than 30-60 days?