Rental number 8 purchased.

Rental number 8 purchased.

Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes

Monday I finally closed on rental number 8. I had signed the closing docs and everything two weeks ago, but the title company jumped the gun and the seller ( Fannie Mae) had not approved docs yet. They rescinded the closing and returned the wire back to me lender.

Purchase price was 97,500 with seller paying 2% closing costs. Home is a 4 bed, 2 bath with one car garage. I can turn it into a five bedroom with a little work. It needs paint , carpet, windows, dishwasher, a few holes patched and a new shower. It should rent for $1,200 to $1,300.

I did 20% down 5 year Arm with my portfolio lender at 4.8725%. Payment is low $500s with taxes and insurance.

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Ned CareyPro Member
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Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
12y

Congratulations Mark, That is about where I am. Did you all of a sudden realize "gee this is growing pretty fast", like I did?

My taxes are 5 times what yours are - Ned

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  • Rental Property Investor · Broomfield, CO · Member since 2013 · 29 posts · 3 votes
    12y

    @Mark Ferguson that area seems to have really good numbers. I looked at a REO a couple blocks from there this spring but the numbers were just not right.

  • Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    @Audrey Truesdale I buy sfr's because they provide the best cash flow in my area. I would be happy to buy multi if they had better ratios around here.

  • Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    @Erik Palmquist it's tough to find anything with great numbers right now. My other rentals are all in Greeley, but I can't find much at all there.

  • Investor · Meriden, CT · Member since 2013 · 201 posts · 145 votes
    12y

    @Mark Ferguson

    congrats!!! you've got a great deal!

    my last one was a foreclosed 1BR, 1BA condo in a great area. bank only wanted $35k. multiple offers came in. I offered $33k, $20k deposit with offer and 1 week closing. bank wanted additional $2k. I agreed. but now bank wanted more time before closing. 1 week was too fast for them lol.

    got condo resale package which showed previous special assessment for new roof on 1 of the buildings ( 5 buildings total in complex) and need for new roof on a different building. told bank I wanted wanted $ back for special assessment that is coming or I walk. keep in mind I already knew about the assessments since I already own a condo in the complex. But I didnt want to pay more than my original offer. Bank agreed, gave me $2500 back.

    closed the deal. place only needed to be cleaned + fresh coat of pain. I didnt even have to replace the carpet! just got it cleaned. everything done in less than a week and rented right away. This was by far my easiest deal!

    rent: $950/mo

    tax+ins: -$139.58

    condo fees: -$341

    --------------------------------

    net: $469

  • Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    @Victor N.

    Nice work! Those condo fees are high, what all do they cover?

  • Investor · Meriden, CT · Member since 2013 · 201 posts · 145 votes
    12y

    @Mark Ferguson

    i agree with you, those fees are high but they include heat and hot water in addition to the usual master insurance, maintenance, etc...

    I use that to my advantage when marketing the rental and it works. Everyone know how high heating bills can be in the northeast. I had multiple potential tenants just days after posting my ad.

  • Aurora, CO · Member since 2013 · 19 posts · 0 votes
    12y
    Originally posted by Mark Ferguson:
    @Adrian Tilley

    Thanks you! I don't know if you saw the post but I am holding a HUD class in Greeley decmebr 4th in the evening for BP investors in the area.

    Hey Mark. Can you send me the deets for the meeting on the 4th. I might head up north and check it out.

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