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Posted almost 10 years ago

Movement is best

So for you that don't know I am am just getting started. I have had some ideas and I am moving forward. I listen to podcast regularly and repeatedly. I read article after article about investing and just love it due to my analytical mind. Anyhow I have been looking into "subject to" because Grant Kemp just blew my mind on podcast 70. I already work 2 jobs at night and I had been tutoring a high school student up until school let out this year. I am still broke as a joke with bad credit so I am at a crossroads as to my best course of action. Job #3 to get a reasonable down payment set aside, seek private money, hard money lender, or get a multifamily that I can live in and cashflow. I am renting a house and thought I may be able to flip it. I made an offer after looking at the county appraiser website here and the owner wanted $39,000 for the house that is appraised at $23,000. He wouldn't budge once he got to $30,000 and the property needs at least $7,000 in work. Unreasonable at best. He didn't get his info on BP and obviously is trying to make money on the back end because he paid more the $25,000 for the property and it is in a business district block with no houses anywhere on the block. Anyhow I scrapped the idea of flipping it. My next step was to look in to multifamily homes which I found one about a block from me with 4 units and the real estate agent said they rent for $300 a piece. It is appraised at $17,000 thought and they first offer was $36,000. He came down to $33,000 with $2,500 down but he was way too eager to write that up so I know he will go below $30,000. I don't have a down payment and I don't know how investing in the property will work yet. I drive around to do deliveries in the morning and I see many houses with for sale by owner signs. I have gotten a pad so I can jot down numbers and have a list to call. I have also seen that there are many auctions going on in the area and I will attend those just to see how they work. At some point I would like to set up a business doing tax liens with local investors but that is down the road. I could use some thoughts. I am a psychology person and a numbers focused musician. I can tell you all day how to make a sale and make it stick but I have no experience on housing and real estate parameters. To me it is all about threshold. What is the best and worst expected and acceptable outcome. I work at night so I can do investing in the daytime but I also have a 3yr son from which I am divorced from his mother and that is going well at all. So any how any feed back would be golden. Thanks.


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