All Forum Posts by: Justin E.

I like this deal

Vehicle/Boat storage

Garden space

Grow landscaping bushes/trees

Yes, I saw that article earlier today. There have been many articles lately that are bashing home ownership. Anyone on this site doesn't believe the BS that the mainstream media is putting out these days, I hope. I take these 'news' articles and put the same thinking into them that I do a congressional bill. The name of the bill in congress will have the opposite affect. IE Patriot Act = unpatriot act. Affordable care act = unaffordable care act. 

The powers that be put these things out there, you best read the hidden lines that mean the opposite of what they are saying.

I know this is not the common thinking, but I would get one good cash flowing house. Then all the profit from that would be put aside and when I have 20% down for the next one, buy another. 

That's a great idea if you can find one that you can afford and the math works. Otherwise you could buy regular small home and have a roommate or two, since you are young. 

@Jon Klaus  I have thought of that, but I do want to get a few properties while taking advantage of the lower owner occupier rates. 

@Chris Vail I estimate $8k for rehab. I will do what work I can myself to keep costs low.

So this property was a VA foreclosure listed for $96,900 3/2 1400 sq ft house, dual cooled, 9500 sq ft lot, built in 1980. The carport was enclosed in 2008, but was listed on the MLS as unpermitted. I found the permits for the space, as well as the tax records showing that it was being taxed as a 1760 sq ft home.

Carport enclosure addition

I found the average sqft selling price in the area over the last year was $77. Which would make the house about $109k @ 1400 sqft (good deal to live in, not as a flip), but at 1760 sqft it is $135k. Now it needs some upgrades, bathrooms, and the kitchen especially - but the layout is good. 

Guest Bath

Master

Laundry room, large and lots of storage, floor to ceiling cabinets not pictured.

The backyard is very nice for this area.

I got it for $98k after a multiple offer situation. 20% down 15 yr 3.375% loan (I don't like paying interest very much). Payments are $710 a month (15 yr mortgage mind you, including insurance and taxes) and would rent for $925-1000 a month. I plan on staining the kitchen cabinets, adding draw pulls, and laying down new tile. The bathrooms would get new tile and vanities, with a double in the master and new shower.

There are 3 houses for sale in the neighborhood, with 2 under contract. One is 3/2 1238sqft with 7,800 lot for $129,900. The other is 3/2 1477 sqft with a pool for $155,000. If they close, that would make $105ish a sqft. 

This house I will live in for at least a year, and then rent out if I can find another deal.

Are you, or have you served in the military? You need to have done that for a VA loan, which is 0% down and no PMI. FHA you can get loans at 10% but have to pay PMI for the life of the loan (have to refinance or pay it off, it no longer goes away when you have the necessary equity in the property). Homepath investor loan is 10% down, no PMI.

I would go on the homepath website and buy up to a $50k property with only the needed 10% down with no PMI. St Louis has plenty of property to buy.

Maybe something like 7154 Dawson Pl or the much better one at 10235 Monarch Dr

Many California investors look out of state. You might be able to pull profit off flipping houses, but the cash flow properties aren't there.