First investment home
Well tomorrow is the day that I/we put a offer in on our first investment home. This home is a short sale, in a teriffic area and way under market value. It doesn't need any major rehab, just cosmetic work. Technically we could throw some paint on it and clean it up and redo the carpet and stick it back on the market. But were seriously thinking of holding onto this property because the mortgage is so low.
Heres the specs:
3/1.5
1060 sf
2 car garage
taxes are 1700 year
37k
We are moving into this property (if we get it) and will fix it up as we can afford it, the house is move in ready and again just needs cosmetics and updates! Will keep everyone posted on how were coming along!
Comments (9)
This is quite the coincidence. The next property we found was a block and a half away from the last house we turned down. We fell in love with this house as soon as we seen it! It has so much potential. Heres the story. We found the earlier mentioned house for 37k, scouted out the neighborhood, did our homework and then with the inspection the house needed more work than we could afford. So we turned it down. The next day we happened to stumble upon this next house that is a block and a half away on the same street. We went and looked at it and really liked it. So we called the realtor and got a showing. When we walked out we both stated that we wanted this house. So we went and worked out the numbers and put an offer in a few days later. Monday the realtor calls and informs us that the bank has accepted our offer. Heres the specs: 3/1.5 1020 sq ft full basement (unfinished) 2 car garage Bigger back yard then the previous house. In 2006 the home sold for 150k We picked it up for 68K Recent comps have sold for 70 - 90k The home needs minimal work, it has a lot of updates, newer roof, and is in great condition! Comparable rentals are going for about $1000 a month! What do you guys think of this deal?
Jason Miller, over 14 years ago
Ok, well we scrapped that one after the inspection. Turns out there was some water damage underneath the brick that was pretty extensive and we just don't have the available cash to fix it right away. But we found another property that we are going to check out tomorrow!
Jason Miller, over 14 years ago
Well we finally reached an agreement with the seller, and now it's on to the bank approval, wish us luck!!!! Thank you all for the comments! It's a small start, but it's right what we were looking to do. Max, The comps in the area are between 50 and 60k. We do plan on keeping the house long term. We would like to eventually rent this one out and find another house to buy/fix/rent or sell. Will keep everyone posted.
Jason Miller, over 14 years ago
All you need is 10 properties briing in $500.00 a month and you are making a good living
Mike Gardner, over 14 years ago
Nice buy Jason. Good luck.
Greg B., over 14 years ago
Moving in and rehabbing a home can be a great investment/tax strategy especially if you plan on living in it for several years before selling it.
Account Closed, over 14 years ago
Jason, that sounds like a great deal. What the ARV of the property? Make sure you have an inspector do a thorough inspection. Good luck!
Sharad M., over 14 years ago
You should possibly think about holding it for a couple of years....wait for appreciating values to come back while avoiding the larrger capital gains hit. Or...don't get too attached..."Off it" and move on to the next exciting project.
Mike Cummings, over 14 years ago
Nice...good luck with it Jason!
Bryan Hancock, over 14 years ago