Just closed on #12 rental

7 Replies

Been working on this one for awhile. wifey and I took a walk in out neighborhood and saw a house with a sign on it. contacted the agent, it happened to be in a redemption period. their price was set at 93k. i used to buy houses in our area for between 63-80, but had to put around 20 in them to make them look very desirable. 

this one was in great shape, so 93k is not that bad. it just needs a vanity upgrade, door locks, paint upstairs and basement and it's done.

the loan was very difficult to obtain. we have loans on 11. we found a bank that said they could do it and all i had to do is put 20% down. the day before closing they told us "sorry, you need 25% down". a week prior they said "you have more than 10 in your name, so we can't do it". we had to involve our lawyer to explain to them that they are all in trust accounts and LLC's, so we were ok. that legal bill cost me $800.

anyway, here are the numbers

PP - 93k
down - 25%
interest - 30 yr, 4.499% (payment is $353)
insurance - $600 after it's rented. while vacant, it's $942 yearly.
taxes ~$2400

will rent for at least $1150. my realtor thinks it will be $1300. we will see who's right.

simultaneously, i am workin on #13 with the same bank, that's REO and i hope it happens. if we get it, will post numbers after purchase.

@George P.  

Congrts, so you buy it from the onwer.

They paid off the redemption. Will you say this is pretty close to retail (market price).

Numbers looks great too. Happy for you. 

@Mark Ferguson , i had to speed up since you were catching up!! :)

@Tom Yung  i had to pay the redemption, which was around $2900. the house appraised at 118k, but it's actually worth more around $125-130. 

I have never really purchased on redemption, in fact, we have never purchased a short sale before.. so it was new to us.

I am keeping the house for a rental. i am much more interested in cash flow than a short term lump payment. 

Originally posted by @George P.:

Been working on this one for awhile. wifey and I took a walk in out neighborhood and saw a house with a sign on it. contacted the agent, it happened to be in a redemption period. their price was set at 93k. i used to buy houses in our area for between 63-80, but had to put around 20 in them to make them look very desirable. 

this one was in great shape, so 93k is not that bad. it just needs a vanity upgrade, door locks, paint upstairs and basement and it's done.

the loan was very difficult to obtain. we have loans on 11. we found a bank that said they could do it and all i had to do is put 20% down. the day before closing they told us "sorry, you need 25% down". a week prior they said "you have more than 10 in your name, so we can't do it". we had to involve our lawyer to explain to them that they are all in trust accounts and LLC's, so we were ok. that legal bill cost me $800.

anyway, here are the numbers

PP - 93k
down - 25%
interest - 30 yr, 4.499% (payment is $353)
insurance - $600 after it's rented. while vacant, it's $942 yearly.
taxes ~$2400

will rent for at least $1150. my realtor thinks it will be $1300. we will see who's right.

simultaneously, i am workin on #13 with the same bank, that's REO and i hope it happens. if we get it, will post numbers after purchase.

Congratulations George,

Have a great day.

Medium list n sell logo designEngelo Rumora, List'n Sell Realty | [email protected] | 419 740 6999 | https://agentscomefirst.com/ | Podcast Guest on Show #89

the house is painted, cleaned by the cleaners and pictures taken. it went on the list sites last night, but just one call so far. asking $1250 per month.

Instead of wasting time listing it myself, i will suck up the fee and list it with the realtor. we have had a great track record that way.

there are a few plumbing leaks that need to be addressed, but that will be after the open house this weekend.

i am super excited since this how is ready just 1 week and one day after closing!!

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