All Forum Posts by: Sal Merola

The offsetting of the capital gains might be the golden ticket!

Sooo here's my situation: Currently Renting a 1942 bungalow 1500 sf home 3/2 w/ detached garage and ally access in the Kenwood subdivision of St. Petersburg, Fl. My rent is $1500 month. It's a highly desirable neighborhood. My landlord is in her 90's ( only heir is her son in his 70's poor health) and she's considering selling me the property. My hurdle is I have a chapter 7 no asset BK only a year old. I've completely changed my philosophy (or lack there of) on money and have managed to save 25k in the past 12 months. I've looked into non QM loans and the hurdle there is I'll need 25% down. The property manager (his father built this house) is my liaison between the landlord and myself and said she'd probably take 300k for the house. Fully renovated homes in my neighborhood that are comps to my house are being sold between $365k-$475k.

From Living in this house I know the bones are good and it's structurally sound. I also know it needs updated windows and insulation, ac duct work, possibly another unit but, can't tell until new windows and the duct work is redone. There is a new breaker box outside but, as far as the wiring it might be original....The roof was redone in 2012 and it was tented for termites in 2017. The kitchen needs to be updated entirely, it still has the original cabinets. The bathrooms look like they were done in the 60's but, they serve their purpose and the plumbing seems sound. Vinyl siding was added at some point mostly likely the 80's, There is a well on the property and irrigation also, the backyard has a huge banyan tree that needs to be trimmed and its root system has taken over a large portion of a brick patio. This house could be a gem with some $$$$

So with all that being said I feel like this could be a great opportunity! or I'm just getting too excited about the possibilities and ignoring the fact that its going to take a lot to get the stars aligned?

Thanks if you read this far!

Has anyone been in a similar situation?

Here's my situation: Currently Renting a 1942 bungalow 1500 sf home 3/2 w/ detached garage and ally access in the Kenwood subdivision of St. Petersburg, Fl. My rent is $1500 month. It's a highly desirable neighborhood. My landlord is in her 90's ( only heir is her son in his 70's poor health) and she's considering selling me the property. My hurdle is I have a chapter 7 no asset BK only a year old. I've completely changed my philosophy (or lack there of) on money and have managed to save 25k in the past 12 months. I've looked into non QM loans and the hurdle there is I'll need 25% down.  The property manager (his father built this house) is my liaison between the landlord and myself and said she'd probably take 300k for the house. Fully renovated homes in my neighborhood that are comps to my house are being sold between $365k-$475k.

From Living in this house I know the bones are good and it's structurally sound. I also know it needs updated windows and insulation, ac duct work, possibly another unit but, can't tell until new windows and the duct work is redone. There is a new breaker box outside but, as far as the wiring it might be original....The roof was redone in 2012 and it was tented for termites in 2017. The kitchen needs to be updated entirely, it still has the original cabinets. The bathrooms look like they were done in the 60's but, they serve their purpose and the plumbing seems sound. Vinyl siding was added at some point mostly likely the 80's, There is a well on the property and irrigation also, the backyard has a huge banyan tree that needs to be trimmed and its root system has taken over a large portion of a brick patio. This house could be a gem with some $$$$

So with all that being said I feel like this could be a great opportunity! or I'm just getting too excited about the possibilities and ignoring the fact that its going to take a lot to get the stars aligned?

Thanks if you read this far!

Has anyone been in a similar situation?Thoughts??

Thank you all for the replies and references!

I'm looking to buy my first property in the St. Petersburg area. Has anyone purchased in the South St. Petersburg area? It's still very rough in some parts but, real estate is limited close to downtown and it seems renovations and gentrification is moving that way? There seems to be opportunity in small multifamily in that area? Any suggestions or information is much appreciated!