Updated about 11 years ago on . Most recent reply
Just closed on #12 rental
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.
Most Popular Reply
@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.