All Forum Posts by: Ashley Evans

Quote from @Brenda Walker:

First thing, my daughter had congestive heart failure and I was preoccupied with her health. The interest rates started going up with my bank the month she was hospitalized.  Same with the prime interest rates.

If I rented two rooms, I'd leave my room open for me to come back when I wanted to. In between the times, I'd stay with my son in southern Illinois The market value of my house came from a real estate agent wanting to list my home. I paid 215,000 and owe 133,000. The high value of my house reached about 375,000 and now real estate agent suggested its down to 324,000 now. Interest is now 8.2% prime. All my pension 4200 goes into my HELOC account. I have been substitute teaching 1 or 2 days a week.

If I sold, I'd buy a nice house for under 200,000.  (I have a 2022 car which I owe 37,000 and two credit cards with zero interest for 1 and 2 years.)     Illinois taxes are higher but housing is lower. If I sold, I'd buy a house in Illinois or possibly Florida.

   I think i addressed all your questions.  I'm approaching 70 years old and not concerned with investments.  A couple of years ago, I thought about renting house and buying an RV to live in and travel between kids homes and Florida.  I have options but stuck on what could be  best option.  That's where I was before the interest rates increased so quickly.   I was interested in starting a assisted living group home because they are needed in this area and also in southern Illinois.  It is hard for me to see which direction would be best for me.  Any suggestions would help.  Thank you for 

Analyze the numbers in each scenario and make a decision based on the numbers paired with your risk tolerance. Nashville has an incredibly strong market. If you can afford to hold on to the asset and are okay with the maintenance and risks associated... then I would hold it and let it continue to appreciate. If you choose to hold it...think about whether the age of your property raises maintenance cost concerns and if you are truly committed to being a landlord. This is a deeply personal decision and it all boils down to how much you'll earn by selling it versus how long it will take you to make the same amount by renting the property. Hope this helps.

Quote from @Adam Levy:

Thanks Mike.  I'm hoping for advice regarding re-negotiating the agreement, making it the best deal I can.  I'm willing to have the repairs done but think some $ should come out of the other side's end.  

Hey Adam.

Get a foundation repair company to quote the work. I'd get 2-3 quotes depending on how much time you have left to negotiate. I would NOT skip this. If you need more time to get those numbers, then your agent can write up an amendment to request more time. 

Once you have those quotes in hand, does the cost of those repairs fall into your repair budget? If not, have your agent present the repair estimate and 
1. request a credit in lieu of repairs or
2. ask the sellers to drop the price

Truthfully, you don't really know how much you outbid the others because you haven't reviewed the other offers. Either way, don't focus on the other offers that the sellers can fall back on. Focus on whether the deal still works for YOU given what you know. 

Quote from @Brenda Walker:

Quote from @Theresa Harris:

Why didn't you change to a fixed rate mortgage when you knew rates were going up?

Are you able to afford the mortgage payments?  If not, a roommate is an option.

How much would you net if you sold the house and what would it cost you to buy a cheaper home?  Are you able to move without losing your job? 

Too many unknowns.

Unfortunately, I didn’t think of refinancing to fixed rate. Had family health and my mind was not on my finances.   I’m retired so can move. Market value has decreased to 327,000. I paid 215,000.   Owe 131,700. Have 83,000 equity. 
   if I rented the house it’ll bring in 2300-2700 monthly. I could buy in cheaper market.  Still will have higher interest 
   thanks for responding. 

Hi Brenda!

I agree with Theresa about there being a lot of unknowns, and I'm assuming that's because you're feeling a bit overwhelmed.

You asked if you should rent the house, rent a room, or sell and purchase in a cheaper market.

I'd like to help you come up with a solution, but here are my questions:

1. If you rent the house...will you then have to rent another place, or will you move in with relatives?

2. If you rent out rooms... are you truly okay with sharing your living space? Have you estimated what you will profit if you rent out rooms to lodgers?

3. Selling and purchasing in a cheaper market... This seems like it would present some challenges for you...Here is why:

You said that you had a family health crisis and were not concerned about your finances. Do you have any credit challenges or high debt?

You also mentioned that you are retired. Are you on a fixed income and is it substantial enough to accommodate today's home prices?

If you are relocating, then where are you intending to relocate? Middle Tennessee is still very competitive. Even moving out 60 miles from Nashville, could present you with affordability hurdles. 

Finally, you mentioned that your property value has decreased. How did you source this information? Not doubting you, but that doesn't reflect the broader Nashville market, so I just want to make sure your home value is being accurately conveyed.

These may need to be questions that you ask yourself, but I'm happy to connect if you'd like to dive deeper.   

@Brandon C.

Reach out to realtors in your area and let them know that you want to invest in duplex. If you're going the traditional mortgage route, show them that you are serious by getting preapproved prior to reaching out, and offer to send them your preapproval letter. This will make them take you serious, because a lot of people waste our time. It also gives them a budget to work with. Also, ask the real estate agent to set you up on MLS auto alerts that match your criteria, so that you never miss a good deal that hits your market. Talk to several agents and observe how well they communicate. If they don't return your calls in the beginning, it's a good indicator of the type of service you'll receive as a client... Whatever you do, don't give up! Buying a duplex is definitely the way to go, especially when house-hacking. I hope all goes well for you!

Tyler I agree. I would wholesale it to a rehabber but the numbers aren't leaving any margin for profit so I cant see how it would be appealing based on the current market in that area. More deals are going come through, so I'll just keep hunting for more!

Okay, so I followed my first wholesale lead and went to look at a property. The problem is I cannot get the numbers to work for me. It is an older home, and there are not a lot of comparable properties to work with. She mentioned that this home needed a lot of work, but I had no idea what I was getting ready to walk into. There is NOTHING inside; no kitchen countertops or appliances, no bathroom fixtures, no walls, no ceilings, there's barely a floor, the exterior needs work, and I'm not making this up. To make matters worse the property values in that area are not appreciating, although I could see that part changing soon. The ARV is $44,250. My estimated repair costs exceed the ARV ($44,754). The homeowner initially planned to flip it and turn it into a rental property but became overwhelmed with all the work and is now in distress. I would like to help, but the numbers say no. Any suggestions?