Well here we are. I have been all over the place in my head, forums and general google search, and it is time to put something to work. I am the normal paralysis by analysis kind of person. I have a lot going on, possibly finding a partner to buy a manufacturing company, I have an online business I am starting to work on again, and also REI.
I am open to trying many things in REI but hopefully will find my niche, I am looking in the Midland, TX (work here) area because it is a better market than the small town I live in (commute from). At the same time I would like to see my small community do a little better, so I am considering buying in my town of 600 people. It is possible I could never sell a house in this town but I think long term buy and holds could be fruitful on a small scale. Positives in the town are great school, quiet and a lot of opportunity to improve the town through real estate and maybe a couple of small businesses.
I want to mark my journey here and try to post daily regardless if I do anything or not, so if I do nothing I put it out to you guys and maybe I get motivated. Thank you for reading.
so here we go, after the tv technician leaves kids, wife and I are going house hunting. Wonder what kind of deals we will find out in po-dunk Texas
I think we have found the first house we want to go after. Almost 2 acre lot, within walking distance to school and neighbors to the principal and superintendent. County appraised it at $51K but they are asking $80K. House was built in 1904. I have attached pictures. What do you all think?
ARV estimated $130k +/- but homes don't sell well here. We plan to renovate then rent. We are trying to do our part in building the community, so we are in it for the long haul. Taxes are fairly low $890 a year, practically no buidling code to worry about. I can do a lot of work myself so cheap labor and I have a good buddy who owns a material company to get a discount. So I am thinking $7500 in rehab. Of course this is rookie talk lol.
Interesting note, I can't seem to find a realtor to show us above house. Properties don't move very often here, so I find it amusing they don't want to show any properties. Is that common?
Originally posted by @Jason DiClemente :
What do you believe it will rent for? Low taxes make for nice cash flow so you certainly have that going for you. Contact the listing agent, you may be able to get a look at it that way. What do the numbers look like? Is it a good candidate for a rental? If you buy for $80k, and put $7500 into it, with closing costs you're looking at about $90k all in give or take. A little more if you are using hard money. So make sure rents in the area can cover the mortgage, taxes, insurance, and reserves for vacancy, maintenance, etc....
I estimate on the low end at $400 +/- monthly cash flow after expenses. I can get $800 a month out of the property for the area, and after taking out other expenses maintenance, tax etc...I get in the neighborhood of $550 cash flow but I am sure I will encounter some cost, so I played it conservative. Also, being it would be my first deal I am prepared for a mistake but trying to prepare for it all.
I am not well versed in hard money lenders, so I can speak on that at all. I just assumed no one would want to invest in this area, so I was thinking traditional financing. I am in an area of about 25,000 people in two counties and 30 miles.
Congratulations!!! This looks like it could have great potential. Check and double your numbers to make it financially makes sense for your goals. Good Luck!!!
Got an email today about an investment property. All cash $100K, I estimate $45-50k in rehab with an ARV of $250k +/-...5 homes in the immediate proximity sold for between $270K-$325K. Looks good to a newbie lol.
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