All Forum Posts by: Emily Allred

Thank you, everyone, for all of your advice.  For various reasons, we've gone ahead with the purchase of this house.  Thank you for all the information and suggestions and wisdom shared.  We are learning.  And like all education, it's coming at a cost.  But you all make absolutely wonderful classmates!

This property is in the Boise area.  From the 30+ homes we've looked at, not a single one meets that 1% rule, not even close.  In fact, this one is the cheapest house/sq ft that we've seen.  So, i'm hearing what you're all saying, and seeing that you're all on the same page.  But not sure how to apply your wisdom to my situation in Boise.  Nothing in the $130,000 price range is renting for anywhere near $1300/month.  And we're committed to the Boise area, that's one factor that isn't flexible.  

Thank you all, for your time and generousity in sharing what you've learned!!

Mark, i'm interested in what you said.  What makes you say that we're subject to the AMT? My hsuband thinks that we aren't, but like i said--we're newbies!  The house is rent-ready, and our CPA says that we could get depreciation, if that helps.  Thank you everyone, for your responses already!! Such a great resource!!

PITI is $825, W2 income greater than $150,000 on average

We are newbies.  Like typical newbies, we're stupid.  We're about 3 months and 1.5 properties into this biz, and realizing just how inexperienced we are.  I just stumbled across biggerpockets (which is amazing!!!), and am realizing that we are locked in to buy a house that, by no definition, is a "good deal."  I mean, it's a fine deal.  If i were buying it to live in, I'd be totally pleased.  But for rental income, I now realize it's not that great of a deal.  We're set to pay $132,000 for a house that's going to rent at $975, and appraised at $135,000 (original asking price was $160,000...which is part of why we THOUGHT it was a good deal)      

In a crazy turn of events, our LLC partners just backed out of our newly-formed LLC last night. Techinically, we can still afford to buy this property. But not without much belt-cinching. So my question is this--should we back out while we can? We'd lose the $1000 earnest money, plus the $700 we've paid for appraisal and inspection. The realtor says that's all we'd lose.

Our lawyer says it's up to us.  Now that I realize that this house isn't an amazing deal, I'm thinking we should back out, and wait for something better.  But losing $1700 sounds painful. And interest rates are going up, we're locked at 4.25%, which some peeps predict is the lowest it'll be for a long while.  What should we do?!?!?!

Any thoughts/suggestions/advice would be greatly appreciated!