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Forums » Off-Topic » My first property ever, 21k! [Video]

My first property ever, 21k! [Video]

38 posts by 17 users

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· kingman, Arizona


Originally posted by Dave Meyer:
So Richard Evans you closed yesterday, right? Congrats by the way!

Did you get right to work on repairs, or move right in?

Hey Dave, Yup! Yesterday it closed and I got my keys! I wish I could start repairing it right now, but the purchase took most of my money and I owe my uncle 1700, so my first priority is paying him back. I should have him payed within a month, then I have to save for my roofing material. It will be a bit of time before it's fully repaired, I'm going crazy thinking about it, I want to get to work RIGHT NOW!



Residential Landlord · Chicago, Illinois


Good for you, and thanks for the update!

Is it just sitting vacant then? I think at one point you mentioned you were considering moving in with roommate(s) vs. just renting it out vs. flipping - please correct me.

Is there a chance of you moving in, getting a roommate as well for a reduced rate and either understanding the place is sub par, or with the understanding that they will contribute to the repairs in exchange?

Just a couple thoughts to help you amass your empire!



· kingman, Arizona


Originally posted by Dave Meyer:
Good for you, and thanks for the update!

Is it just sitting vacant then? I think at one point you mentioned you were considering moving in with roommate(s) vs. just renting it out vs. flipping - please correct me.

Is there a chance of you moving in, getting a roommate as well for a reduced rate and either understanding the place is sub par, or with the understanding that they will contribute to the repairs in exchange?

Just a couple thoughts to help you amass your empire!


Yea, it's vacant for now. I though about having my sister move in with me and she would just have to pay a couple hundred a month. I'm kinda lost now, I just want to keep on the path to success, I'm afraid if I just live in it myself It will take forever to fix it... I only make 9.65 and hour.



Residential Landlord · Chicago, Illinois


Originally posted by Richard Evans:

Yea, it's vacant for now. I though about having my sister move in with me and she would just have to pay a couple hundred a month. I'm kinda lost now, I just want to keep on the path to success, I'm afraid if I just live in it myself It will take forever to fix it... I only make 9.65 and hour.

I remembered you don't make a ton of money, but you need to decide (as others have posted) what the best use is. What would it sell for, and what would it take to get it there? What would it rent for, and what would it take to get it there?

Or live there free and have your sister pay tax and insurance, possibly maintenance, via her couple hundred a month. You did save the 21k pretty quickly if I recall, so if this is attainable in your area you could just get another one pretty quickly.

Have you already done each of those calculations? If not, before you spend a ton of money it may benefit you to do so. Example, don't put granite in as if its your dream house only to rent it out to tenants who don't care.

If you want, post questions here and you'll get tons of different opinions.



· Baltimore, Maryland


Man I sooo wish that I could get that much real estate here for $21k. Nice grab!!



· kingman, Arizona


Originally posted by Dave Meyer:
Originally posted by Richard Evans:

Yea, it's vacant for now. I though about having my sister move in with me and she would just have to pay a couple hundred a month. I'm kinda lost now, I just want to keep on the path to success, I'm afraid if I just live in it myself It will take forever to fix it... I only make 9.65 and hour.

I remembered you don't make a ton of money, but you need to decide (as others have posted) what the best use is. What would it sell for, and what would it take to get it there? What would it rent for, and what would it take to get it there?

Or live there free and have your sister pay tax and insurance, possibly maintenance, via her couple hundred a month. You did save the 21k pretty quickly if I recall, so if this is attainable in your area you could just get another one pretty quickly.

Have you already done each of those calculations? If not, before you spend a ton of money it may benefit you to do so. Example, don't put granite in as if its your dream house only to rent it out to tenants who don't care.

If you want, post questions here and you'll get tons of different opinions.

Hey Dave, I actually think I would rather flip it than use in as a rental. I was told I could probably get at least 45k out of it If I fixed the roof and did some cosmetic stuff, I was thinking about trying to turn that carport into a garage too as I think that might boost the price a little. I was told by my realtor, who flips houses, that as long as I don't spend much over 10k on repairs, I should do pretty good. Now if I actually did do that and got about 45k from it, I would either want to buy a little more expensive house, maybe 30k, than use my extra 15k to fix this one even faster! These are all just thought though, probably a lot easier to say than do, how does that sound to you Dave?



· kingman, Arizona


Originally posted by Chris Topher:
Man I sooo wish that I could get that much real estate here for $21k. Nice grab!!
Thank you Chris, it is a pretty awesome deal!



Rehabber · Albuquerque, New Mexico


Originally posted by @Richard Evans:
Hey Dave, I actually think I would rather flip it than use in as a rental. I was told I could probably get at least 45k out of it If I fixed the roof and did some cosmetic stuff, I was thinking about trying to turn that carport into a garage too as I think that might boost the price a little. I was told by my realtor, who flips houses, that as long as I don't spend much over 10k on repairs, I should do pretty good. Now if I actually did do that and got about 45k from it, I would either want to buy a little more expensive house, maybe 30k, than use my extra 15k to fix this one even faster! These are all just thought though, probably a lot easier to say than do, how does that sound to you Dave?

Richard Evans, first thing I'd suggest is get some good comps to see if the ARV is correct (the $45k).

Good comps:
-Similar (Age, bed/bath, story, sqft, etc...)
-Close in proximity (1/2 mile or less)
-Recent (3 months or less)

Then tell us what you get, and we'll all help you decide!

Manuel



· kingman, Arizona


Originally posted by Manuel Acuna:

Richard Evans, first thing I'd suggest is get some good comps to see if the ARV is correct (the $45k).

Good comps:
-Similar (Age, bed/bath, story, sqft, etc...)
-Close in proximity (1/2 mile or less)
-Recent (3 months or less)

Then tell us what you get, and we'll all help you decide!

Manuel

Is there any sites you would use to do these comps? I know the zillow estimate for it is 42k, is that accurate at all?



Residential Landlord · Chicago, Illinois


Originally posted by Richard Evans:

Is there any sites you would use to do these comps? I know the zillow estimate for it is 42k, is that accurate at all?

Perhaps, but your agent can send you a detailed report of everything that has closed in the immediate area. Important to consider proximity, beds/baths, condition when making any comparison.

Also, you need to consider selling costs. If you spend 10k to improve and pay realtors 2.5k you have less profit.



· kingman, Arizona


Originally posted by Dave Meyer:

Perhaps, but your agent can send you a detailed report of everything that has closed in the immediate area. Important to consider proximity, beds/baths, condition when making any comparison.

Also, you need to consider selling costs. If you spend 10k to improve and pay realtors 2.5k you have less profit.

I'll have to asked my realtor for one of those reports. I know went on a site that showed the prices for the houses all around it,( Maybe estimates) most were over 70k some were 150k. My house is older than most of the houses around it though. Totally forgot about the realtors fee, definitely can't forget about that when adding up the expenses. I appreciate how how helpful all of you are. This is really an awesome online community.



· Fort Lauderdale, Florida


Nice house Dave,
It's going to look great once it's freshened up. If I were doing it, I would see if the wall between the kitchen and living area is load bearing, and if it is not....then I would knock out the top half of that wall to open it up and create a breakfast bar there. People always seem to like those. :) Good luck. Can't wait to see it finished.
Kristin



· kingman, Arizona


Originally posted by Kristin Britt:
Nice house Dave,
It's going to look great once it's freshened up. If I were doing it, I would see if the wall between the kitchen and living area is load bearing, and if it is not....then I would knock out the top half of that wall to open it up and create a breakfast bar there. People always seem to like those. :) Good luck. Can't wait to see it finished.
Kristin
I checked it out and found out it isn't a load bearing wall, that sounds like a good idea to me! I'm kinda bummed, I just got my gas bill and I owe $70 this month for a house i'm not even living in yet! I must have a gas leak or something, It doesn't smell like gas at all around the property though.



General Contractor · Tampa, Florida


find a realtor and find out if you could sell it right now and make a quick profit.

the realtor could also tell you top dollar what the house could bring after ou fix it.

DO you have an estimated cost to fix it up and what are your rehab plans? paint, new carpet, new laminate hard wood like flooring? new appliances?



Real Estate Investor · Audubon, Pennsylvania


Originally posted by @Richard Evans:
... I'm kinda bummed, I just got my gas bill and I owe $70 this month for a house i'm not even living in yet! I must have a gas leak or something, It doesn't smell like gas at all around the property though.

Richard Evans -
Is the hot water heated by gas? The hot water could be leaking from a faucet, causing lots of water to be heated. Or the water heater might have a small tank leak. Is the cooking gas? The stove might have pilot lights that will burn gas. Heating system is probably gas, so there might be a pilot there too, and you have to see what the thermostat is set to (set it somewhere between 50 and 60 degrees F when nobody is living there). And don't forget that the gas company will have a service fee that shows up on the bill even if no gas is consumed.


Steve Babiak, Redeeming Properties, LLC
Telephone: 6109082183
...


Residential Real Estate Agent · Jacksonville, Florida


@Richard Evans I just wanted to say it's amazing that you were able to save that kind of money, very impressive. Have you started on your rehab? How did the comps look from you realtor?

Good luck, it sounds like you are on the right path. Being able to live on less then you make is almost a requirement to get into business and most people simply can't do it.



· kingman, Arizona


I found out that the reason my bill was so high is because the broke-up the initial startup fee into two payments. @Tim Czarkowski, Thank you very much, I haven't started anything yet, but I've finally got enough saved-up for the roof. I forgot to ask my realtor for comps... I was actually kinda nervous to ask him. I'm starting a new job as an HVAC Service Apprentice on Monday, I'll be able to do so much more in the real-estate world once I get good enough to make decent money. Pretty excited!



Rehabber · Albuquerque, New Mexico


@Richard Evans How's everything going so far?





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