All Forum Posts by: Shane Johnson

My dream deal is my second house. I hope i can do it 10 times over.

It was a HUD home, with first look initiative. Thankfully I was in a position to bid, so I put one in. 2 bids were 20k higher than mine, but backed out for personal reasons. 1 bid and maybe both were CASH too, i actually randomly met one of the bidders a few months later, and he told me he bid owner-occ, 101k cash. I put in an owner occ offer, conv loan, 5% down at $82k.

I tore up the cat pee carpet, painted everything on the main floor (ceiling to floor, minus window trim) and refinished the wood floors myself, staining them walnut, also took main bath to studs and back up (reused newer toilet and the original cast tub).

1 year 2 months later, I have 3 comps that closed in the last 30 days for $141k, $143k, $145k. Ironically the 141k house is the nicest and largest sq ft.

I got the paper work rolling on a HELOC today, hopeful the full appraisal comes in north of $135k, hoping for $140,000.

If this happens, the house will have appreciated $50k+ in equity in 1 years time on paper.

I only have the 5% down, and about $3000-4000 cash out of pocket into rehab. So roughly $8000 overall, plus a majority portion of the PITI payments(minus monthly rent of $350) if you want to get technical.

It also has a full attic to I can finish into a master, and a full poured concrete basement I can finish as well, ultimately taking this house from a 1050 sq ft home, to near 2300 sq foot. 3/3 with bonus non-conforming bonus in basement. (or 4/3 with escape window).

PITI is currently $723 a month, and it should rent for $1100-1150 a month very quickly in current condition if I chose to. I currently occupy it myself, with a roommate for $350 a month.

You seem to have a good grasp on getting started, terminology, and basic knowledge of financing. I will say though, if you think that house will realistically cash flow $210-265 a month, you need to spend more time on biggerpockets reading before you pull the trigger on a deal like this. That or this thing is a new home that needs absolutely nothing, and all majors are brand new, and you plan to hold for less than 5-10 years.

If you want to gamble on appreciation, rent it out, PM it yourself, mow the yard and yourself, then go for it and sell in 2 years.

blow up a common wall, so its 4 units. finance it, put the wall back up.


:D !

looks good. That house is less than an hour from me :)

I have been contemplating painting mine, or stripping the white wash off. It is dark red brick, with a semi-close colored tile below,surrounded by walnut colored floors. The 97 year old lady who owned the house before me loved her sponge paint pattern... I was thinking painting it fire engine red (my walls are taupe, baseboard trim white, and floors oak stained walnut) and thought of painting the tongue and groove behind it white (or the taupe) as well, but not 100% sure on color scheme, as i want the FP to be the focal, and not have too many colors going on. the living room is decorated with tan/chocolate, hints of red etc....

Yeah they definitely didn't study their dormer design material. It looks like they went for maximum upstairs room instead. I also would put the shed dormer facing the rear of the property. and only gable dormers facing the street on a cape cod. (can you tell I own a cape cod and have thought of this? :) )

I dont have too many professional ideas on how to fix this, but maybe like Edward said, refacing the top in brick on the front would help tie it in visually and extend the brook look UP. Also, depending on budget/investment and ARV, maybe build a large cedar deck out front, possibly the same width as the dormer, with large pergola beams jutting out from the house, to create a false roof, seating area out front, and to add size to the front of the structure to TRY to bring some proportion back to the visual aspect of main level vs. dormer.

Overall I have seen much worse. Let us know what you do, and what it cost. Thanks!

Awesome! ill have to check this out. much nicer than using talk to text, with notepad, and keeping track of addresses, and no street view visual to remember it by! Another app I should have thought of...

From what I hear, right now you have no lease agreement with him, and no mention of a tenant in your contract. Technically, I believe he is trespassing?

Or if you wanted to go the nice guy route, rent to him at what you intend to rent the property for, with a signed (notarized or witnessed) contract, that he will be fully moved out by said date. But in my mind, this only will make this exact conversation and issue be delayed a month as he half-a$$ tries to find a way to fix his credit and living situation.

@Dell Schlabach

That is fantastic. I have an extra vanity from upstairs I could install at little cost, painting walls and floors is easy and on the agenda. Did you have to improve the shower at all? Or just open floor with floor drain is ok?

For anyone still following this thread - here is one of the comps I am waiting on to close. I don't know sold price yet, but I do know it went for over list price, had 5 offers in 2 days on market, 2 of which were cash, 1 of which took the cake. It is a 3/1 has a few more upgrades than mine (kitchen/appliances/windows, slightly larger lot (.3 vs .265) but overall has a smaller main floor, only 1 BR on main, and smaller foundation. Based on all of this I feel I should comp out similar with a finished attic bedroom.

http://www.edinarealty.com/homes-for-sale/WI/Hudson/54016/723-Laurel-Avenue-94133158