My first property ever, 21k! [Video]

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I wanted to share a video with guys of my first house. I had no life for two years so I could save up for it. http://www.youtube.com/watch?v=d2ARc2c1eFM&feature=share&list=UUE5zZeFgjUobAgz88_ifIGg Can someone tell me how to make a clickable link?

Thats your link Richard.

For URL you should click on the URL tab above the topic if you write an post. First click to create the URL link and second to close it.
Hope you can understand my english ^^.

-Uwe

How much are the estimates to fix it up?
What are your plans for it after the rehab?

Congrats! Are you planning on owner occupying, fix and flip, or rental?

Thank you Uwe S. I'm doing and owner occupy for now, I want to fix and flip it if I can make decent profit, if not I might just get a roommate so I can save faster to buy another one. once I have two propertys hopefully saving just get easier. The major thing I have to fix on the house is the roof, should cost around 1500. Most of the other stuff is cometic, I have a working ac unit from my older brother that does HVAC, I might put that in instead of the swamp cooler, so that will be some money right there too. any ideas on what I could do to ad value to it?

Awesome congratulations! You are going to learn a TON from this. Let us know what your plans are after the rehab.

Originally posted by Richard Evans:
Thank you Uwe S. I'm doing and owner occupy for now, I want to fix and flip it if I can make decent profit, if not I might just get a roommate so I can save faster to buy another one. once I have two propertys hopefully saving just get easier. The major thing I have to fix on the house is the roof, should cost around 1500. Most of the other stuff is cometic, I have a working ac unit from my older brother that does HVAC, I might put that in instead of the swamp cooler, so that will be some money right there too. any ideas on what I could do to ad value to it?

Congratulations!

As for adding value, just get the mechanicals in good working order & get it looking clean & fresh - paint & carpet or other flooring do most of the work. Get the kitchen & baths sparkling & you may double or even triple your money in short order.

Originally posted by Richard Evans:
Thank you Uwe S. I'm doing and owner occupy for now, I want to fix and flip it if I can make decent profit, if not I might just get a roommate so I can save faster to buy another one. once I have two propertys hopefully saving just get easier. The major thing I have to fix on the house is the roof, should cost around 1500. Most of the other stuff is cometic, I have a working ac unit from my older brother that does HVAC, I might put that in instead of the swamp cooler, so that will be some money right there too. any ideas on what I could do to ad value to it?

Biggest things I see to improve are Paint, drywall repair, replace the acoustical tile ceiling with drywall, flooring, Counter tops, shower surround. Just basic cosmetic remodel stuff.

Probably looking at 10K-15K or so to have it cosmetically prettied up.

What kind of roof is that btw?

That's great Richard.

Instead of wanting everyone to give you something you have shown the perseverance and discipline to make it happen for yourself.

Everyone wants success but just a few will work for it to make it become a reality.

Make sure you have no debts that cost you money every month charging high interest and instead bank roll and keep growing your money. If you have a lower income job find a way to leverage up to a higher paying job to get more capital faster.

You could also go work for a flipper investor or buy and hold to learn the business.If you want to do it full time I would do that rather than running up 100k of debt you can't get rid of from college.

All the best.

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com

Wow, thanks for all the great suggestions! So that's a real type of ceiling huh, Ed? I thought someone just glued floor tile to the wall or something lol. Mark H. Wow that would be amazing if I could flip it for a profit like that, I could start getting into some real investments! Thank you for the compliment Joel, I appreciate it. By leveraging up to a higher paying job do you just mean get a better paying job? I would love to fix and flip houses full time, how might I get in contact with a flipper investor?

@Richard Evans That's great you were able to jump in!

I got some q's as I'm looking for my first too:

1. How long did it take to find your first one?
2. In terms of negotiating with the bank, was there many counter offers?
3. What was the asking price.
4. From putting in your first offer to closing, how long did it take?

Thanks a lot! And great job!

Looks like a great first house to me, Congrats. Since it is an OO, I suggest you do the minimum repairs to get in it. Then I suggest you live in it a while building some cash and experiencing the house. Don't go overboard. Your goal should be getting the value towards the top value of the neighborhood. Any work beyond that is wasted $$$.

Good stuff!

You seem like you've got a hell of a deal. Take care of it, get the best insurance you can because you can afford it and deduct it. Screen tenants harshly and good luck.

Make sure you keep investing wisely.

Originally posted by Ed Lee:
... replace the acoustical tile ceiling with drywall, ...

In lots of places I've seen owners put up acoustic tile ceilings because there is some other issue with the ceiling above the tile. Maybe cracked, or sections of plaster & lath collapsed, or water damaged - but whatever that is, you will have to look first and fix it before putting in the new drywall ceiling. Might not even be anything wrong - some people just use the latest fad in decorating, and tile ceilings were all the rage at one point.

Richard look up your local real estate investor association.

If you go to work for a flipper to learn the business make sure you are not used and abused.Make sure they have completed a certain volume of deals and that they have the knowledge to give you.

What investors do not want is to work with someone with no drive who wastes their time.

If they will pay you a decent wage that is at least what you are making now or more,you hit it off from the start,etc. then you are on your way.

Eventually you can partner with them on some deals when you save up some more cash and they will show you how to save and supplies and do quality repairs and upgrades in a fast manner.

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com

Hey Manuel ( How do I quote people now?) I've Actually been looking at houses online for over a year before I got one. I've only started going inside them and checking them out in real life in the past for months though, The only counter offer the bank made was they didn't want to pay for insurance, So the reduced the price of the house by that much. The asking price was $19,900 I offered $21,200 because most of the good deals get bought for more than the asking price from what i've seen so I just wanted to be safe. I think I put my offer in on 8/19/2012 and it closes this Friday. Sorry Ed, I forget to answer your question about the roof, it's a shake roof. Thank you J I think it's a pretty good deal, Thanks for the advice! Steve I could be very possible that the tile ceiling was put up to hide a water damage. Wow thank you Joel, that would be amazing, I'm going to see if my town has a real estate investor association right Now!

Thanks for replying @Richard Evans ! :D

And if you want to quote someone I just press the "quote" button by their name, it's under their picture. And also if you want to directly talk someone you can put a @ sign and then type out their name like this, "@Richard Evans". (Notice there is no space between the @ and the name) Thanks again, I'd love more details as your project moves along so keep us informed :D

Manuel

Originally posted by Manuel Acuna:
Thanks for replying Richard Evans! :D

And if you want to quote someone I just press the "quote" button by their name, it's under their picture. And also if you want to directly talk someone you can put a @ sign and then type out their name like this, "@Richard Evans". (Notice there is no space between the @ and the name) Thanks again, I'd love more details as your project moves along so keep us informed :D

Manuel

Oh, I see it now! Thank you Manuel, I'll definitely keep you guys updated.

So @Richard Evans you closed yesterday, right? Congrats by the way!

Did you get right to work on repairs, or move right in?

Originally posted by Dave Meyer:
So Richard Evans you closed yesterday, right? Congrats by the way!

Did you get right to work on repairs, or move right in?

Hey Dave, Yup! Yesterday it closed and I got my keys! I wish I could start repairing it right now, but the purchase took most of my money and I owe my uncle 1700, so my first priority is paying him back. I should have him payed within a month, then I have to save for my roofing material. It will be a bit of time before it's fully repaired, I'm going crazy thinking about it, I want to get to work RIGHT NOW!

Good for you, and thanks for the update!

Is it just sitting vacant then? I think at one point you mentioned you were considering moving in with roommate(s) vs. just renting it out vs. flipping - please correct me.

Is there a chance of you moving in, getting a roommate as well for a reduced rate and either understanding the place is sub par, or with the understanding that they will contribute to the repairs in exchange?

Just a couple thoughts to help you amass your empire!

Originally posted by Dave Meyer:
Good for you, and thanks for the update!

Is it just sitting vacant then? I think at one point you mentioned you were considering moving in with roommate(s) vs. just renting it out vs. flipping - please correct me.

Is there a chance of you moving in, getting a roommate as well for a reduced rate and either understanding the place is sub par, or with the understanding that they will contribute to the repairs in exchange?

Just a couple thoughts to help you amass your empire!


Yea, it's vacant for now. I though about having my sister move in with me and she would just have to pay a couple hundred a month. I'm kinda lost now, I just want to keep on the path to success, I'm afraid if I just live in it myself It will take forever to fix it... I only make 9.65 and hour.

Originally posted by Richard Evans:

Yea, it's vacant for now. I though about having my sister move in with me and she would just have to pay a couple hundred a month. I'm kinda lost now, I just want to keep on the path to success, I'm afraid if I just live in it myself It will take forever to fix it... I only make 9.65 and hour.

I remembered you don't make a ton of money, but you need to decide (as others have posted) what the best use is. What would it sell for, and what would it take to get it there? What would it rent for, and what would it take to get it there?

Or live there free and have your sister pay tax and insurance, possibly maintenance, via her couple hundred a month. You did save the 21k pretty quickly if I recall, so if this is attainable in your area you could just get another one pretty quickly.

Have you already done each of those calculations? If not, before you spend a ton of money it may benefit you to do so. Example, don't put granite in as if its your dream house only to rent it out to tenants who don't care.

If you want, post questions here and you'll get tons of different opinions.

Man I sooo wish that I could get that much real estate here for $21k. Nice grab!!