Just Purchased Rental Home in Ferguson, MO

[Guy M.]

Hey all,

I just purchased a 895 sqft, 3 BD, 1 BA home near Ferguson, MO. The appraised value of the home is $49,900 and I bought it for $9,500 this morning. The person who sold it to me remodeled the interior and was going to rent it out but her husband, who is an investor, fell sick. They no longer want to hold property; this was their last property to be sold. I also understood that some investors are steering clear of that area until the Mike Brown stuff fades away, so maybe that was part of the seller's motivation as well. 

The figures on the investment look like this:

Market Rent (monthly): $755

Section 8 (monthly): $800-900

Taxes/Insurance (monthly): $116

Property Management Fee (monthly): $75-80

My projected monthly net income is about $450.

I'm a complete noob, so bare with me. I was way too busy today (wife is pregnant and had appointments), so I couldn't make the phone calls I wanted to make. Anyway, I have a quit claim deed... do I need to record this deed at county ASAP? Also, does property management arrange section 8 or do I have to visit the PHA myself? How can I leverage this property to buy another one I'm eyeballing? Any other pointers?

Thanks.

[Sylvia B.]

Quit claim deed? Yikes! I hope you didn't get fleeced. You do know that that type of deed only transfers whatever interest (if any) the grantor has at the time? I could sign a quit claim deed to you for that property - doesn't mean it's worth anything.