All Forum Posts by: Ted Jackson

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $27,000
Cash invested: $3,500

Purchased in 2015 and held until now. Decided to sell in current market. Closing 11/30 for 96,000

What made you interested in investing in this type of deal?

I was searching for a start to get out of rat race. Was interested in real estate after listening to another podcast, can't remember the name. Bought this property (my first) not really knowing what I was doing at the time.

How did you find this deal and how did you negotiate it?

MLS. It was kind of run down, but in a decent area. It was bank owned. I put in an offer, they countered, I accepted.

How did you finance this deal?

Investment loan from credit union with 20 percent down

How did you add value to the deal?

First I just did the essential; paint, essential repairs including plumbing, etc. Once I decided to sell I added laminate flooring, metal roof, new door knobs and other facelift items.

What was the outcome?

It cash flowed about $200 over 6 years so that is around $14,400. After selling next week it will profit about $65,000.

Lessons learned? Challenges?

Many lessons learned.
1) How to be a good landlord
2) How to fix many of your own items if needed
3) keep a good handyman's number handy
4) make contacts with handyman, HVAC guy, general contractor, plumber, painter and form relationships
5) you first investment will be daunting but push through it
6) buy more

The only true challenge this one presented (other than my own fear) was plumbing when I first purchased it

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not really. If you repair and facelift the house correctly it will sell/rent itself. I do use a remax agent and local credit union because I generally invest in houses under 50k and large banks won't touch them.

Tthanks all. Pat I went through over a dozen and fielded 38 phone calls before I found a good tenant. That part of it is aggravating, but worth it.

No I put 20% down, HUD covered some of the closing cost, I covered remainder. All in all it was like 7k down. I had been looking to buy for some time, I just couldn't find anything decent for a good price. I know that some folks are not a fan of these type houses, but to them I say there is more than 1 path to personal wealth. There is a huge demand for decent, affordable housing in my area. I plan to maximixe my opportunities by providing safe, decent homes at an affordable price, while providing excellent property management. I have been in financing for 5 years, so I have been screening people every day for years.

thanks all, already in process of acquiring 2nd. The interest rate is 6.5%. Great deals are hard to find, but patience sure helps. I will post pics once I figure out if and how I can do that. I was inspired by listening to the podcasts. Been a member for a while, was just afraid to get started. 

sure it is a single family home at 58 victory dr in cheraw, sc. A fitting street name for my first property.

So here's the numbers:

appraised value: $40,000

purchase price: $27,000

monthly rent: $550, (could have gotten $600, rookie mistake)

rehab cost: less than $1,000

dimensions: 2BR, 2Ba, Approx. 1,000 sq feet

The unit is already rented to a tenant who passed screening, and seems great thus far. I purchased it through hudhomestore.com. I paid 20% down and used a credit union to finance remainder on a 15 yr note. So whaddaya think?

My family and I are selling our home since we are upgrading to a home on a lake. I owe about 112K, and the home is worth about 140K. I have considered all options from selling it straight out, renting it, and lease options. I like the idea of profiting from the sell to have more money to invest, but I also like the idea of making a small monthly profit. My current PITI is around $800 monthly. My biggest concern is that the property has a pool, which I view as a huge liability. Anyone care to share any thoughts on what the best option may be?

great advice guys, I will certainly be calling around to see if I can find a better deal, or negotiate a better deal with the current manager. Either way, I will not be settling. I was leaning that way anyhow, just wanted to get advise from more experienced folks

I am closing on a 4 unit apartment and considering leaving the current propert manager in place since she has done very well there. She wants 10% of the monthly rent, which I think is fair, but also the first months rent from a new tenant. To me, that is a deal breaker but I just wanted to get some advice. Is that about the normal charge, or is that first months rent from new tenants a dealbreaker? Please only advice if you have actual experience. Thanks.

Jim I definitely want something local that I can manage. As far as the mortgage, yes I could cover it if need be, but that is definitely not the plan or expectation