All Forum Posts by: Shane Caraway

Carpet would be cheaper. You won't be able to salvage them without sanding and restaining. Depending on how bad the water stains are you may not be able to sand them to the point where the stain leaves. Those areas would have to be replaced.

Another option would be to put in laminate floors. This can be done for about the same price as carpet and still have the hard wood look.

If you do decide to salvage the original hardwoods, I would suggest getting a pro. This is a very easy job to mess up, but is definitely not as easy to do to perfection as they show on TV.

The trailer is virtually worth nothing. The only value to this place would be in the land that it is sitting on. Now If the land has a decent well, electric service, and septic system you could potentially have something, but it did not sound as if the land was for sale.

It would most likely cost more to move the trailer than a fixed up version could sell for. Even if it is in really nice shape it is still an almost 40 year old trailer house that you wouldn't even be able to rent to local college rodeo team kids. 

I am not in the military, but I went through the same thing with my wife's attachment to the house we were moving out of when I got transferred.

She absolutely loved the house and did not want someone else possibly destroying her house. The one thing that I pointed out to her that helped her decide to rent it was that if we sold it, it never be "her" house again.

As it is now we still own the house and rent it out. If we ever have the itch to go back to that area we can wait until the lease is complete and move back into the "her" house because she still owns it.

If it gets torn up, that's what you have insurance for and you can always fix it bigger and better than before.

who not ho

I think Mathew 25:14 -30 would work well here. These men made money with and profited with someone else's money. The one ho did not suffered for it.

I agree on the interest rates, at 10% there is no equity gain for a very long period of time. 7% is a little better, but not by a lot.

There is not a prepay penalty. I have not discussed the security and subordinates with the seller yet at this point.

These properties are in C class areas where there is a lot of gentrification happening. I spoke with a realtor/property manager and he stated that this area is selling updated homes for the $80/sq. ft. He wished that he had a few more in these areas of town.

I think these properties could go either as rentals (budget) or beginning investors and/or OO.

I had considered putting more money down, but in order to get more down I am cutting reserves and rehab money.

I have an opportunity to buy 4 properties from a retiring landlord.

The deal looks like this.

$2500 down

274,000 purchase price

10% interest

PITI $ 2422.10

Max income would be $2850 (rent)

This obviously will not work when you include any taxes, insurance, management, or CAPEX.

The properties should be able to be resold for a little over 400 K with some light rehab. 3 of the properties have recently been rehabbed from what I can see. If I sold 3 of the properties. It would pay off the note and give me 1 property free and clear. If I have to hold the properties for very long this  (6 months), I would not be able to cover the carrying costs.

If I can get the landlord to drop to 7% I can even keep all 4, and have a slight cash flow, but very slow equity gain except the initial 36% percent that I bought them at.   

Sounds crazy, but it is legitimate.

I came across an ad that stated the house is free, but it needs to be moved. If you can move it you can have it. So, I went to take a look at it and figured it would probably be best suited for fire fighting practice, it wasn't. The house is actually nicer than the house I am living in.

Here is what I have figured out so far.

House $0

Building movers $20K

Acreage 1.6ac lot $10K

Utility hook ups $10K

Foundation for house $10K

Misc. repairs after move 5K

Closing costs for construction loan $5K

This house on a small acreage should easily sell for $100 - 110K. Am I missing something or is this an investment worth pursuing? If it didn't sell, I could rent it out for somewhere in the $800/mo range.

I live in rural NW Iowa. When I moved out here I found that rentals are very scarce. I came across a house that is selling for $43,000. I don't have enough cash to make buy an investment property with 30% down, but the owner is considering financing the 30% for 4 years no interest at $270/mo. This would put me at a mortgage payment of $150 -200/mo. for the  remainder.

Breakdown looks like this in my little mind.

Owner $270

Bank $175

Taxes $50

Insurance $100

20% Incidental/profit $120

Rent for $750

There would be 0 money out of pocket except the closing costs that would be minimal due to financing with local bank with original owner. Owner has been told the deal could be done by the bank for around $1000.

The first 4 years are about breakeven, but the profit margin really opens up after that.