All Forum Posts by: Tashina Taylor

How would I bring in $1300-1400 a month? I would still have a mortgage payment of $1200 or so.

 The root of my desire to refinance is because I am locked into a mortgage through my state that does not allow me to rent out my house. The only way I am allowed to do that is to refi with a conventional mortgage. 

Unfortunately, the banks I've talked to around town will not let me refinance using rental income unless I've had established rental income for 2 years already....

 We actually will not be paying rent at our new place.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

So this is an assessment of the house I currently live in. We've had some CRAZY appreciation in prices from the pandemic and people wanting to move to more rural areas. I am stuck between wanting to sell it and be done with it and never forgive myself for selling real property (lol) and using the money to pay off my consumer debt that I've racked up from losing my job in April due to COVID, or attempting to get it refinanced based on potential rental earnings if I can convince a bank to let me do that without a real job. We have a house to move into, so doing either one is viable but I am looking at the numbers and trying to decide which is better overall. One is a quick payoff of debt which is a heavy load on a jobless person going to grad school for the next two years. The other is a gradual payoff if I can swing making minimum payments on my cards I used to fix up the house and deal with it until I get a job again, using the extra $500 towards debt payoff and maybe doing some Door Dashing on my time off.

Anyways, I currently owe $187k on it. I bought it for $189k two years ago, and it has since appreciated to $240k+. I can refi and get out of PMI at this point. Insurance just paid for a new roof and new paint on the house (it's like a totally different house!) and I paid for a new water heater out of pocket. Contractors are currently retiling and painting the bathrooms and I think I'll be out about 5k from that. Overall 12k max if I decide to put better countertops and a new fridge. I've been fixing it up to sell in general and realized I may be able to ask for a very good rental price because of that.

I am basing the rent on what's available in the neighborhood. There is a townhouse that is smaller than this one that is asking $1700/month. There is a VERY fancy house that is 300 sqft bigger than this one that is asking $2000/month. I figure $1800 would be a safe number to ask for. I would ask $2k/month if they wanted to bring in dogs. Pet rent ftw! Rental inventory in this town is low, let alone rentals that allow big dogs. Because of this, I feel like I could guarantee the rental asking price. 

What are your thoughts?

I've just come across some old listing pictures. I am CERTAIN that the house was almost completely remodeled.

If you look at this link, and compare it to the inspection report pictures, this place was almost done being fixed up! https://www.realtor.com/realestateandhomes-detail/1399-N-8th-St_Greybull_WY_82426_M88097-42881

@Jerry Limber Sure thing! Here's a link to the auction site. The pictures from last month are in the inspection report. https://www.auction.com/details/1399-n-8th-st-greybull-wy-82426-2944403-o_1311

@Bill S.

Yes, it was on Auction.com! It had an inspection report available from just last month so I at least know it was still standing then. No reports of house fires in the paper since, so I think we're okay in that regard.

I think we may have gotten extra lucky as the previous owner seemed to have been fixing the place up and then couldn't anymore. New A/C ducts, new water heater, and new hardwood or vinyl flooring was being put in. At least one bathroom had been remodeled. The metal shops roof might have collapsed over winter, or there is just a ton of junk inside. That will be a fun surprise for us lol

I am also trying to sell the house I live in, so we may move into that one for a while just to get out of my current one. It's no Cody but at least it's not 5 hours away from us anymore! Love that town!

After analyzing house after house, we finally found an auction house worth bidding on. Even had a little bidding war! We got a 3/2 house with a giant shop on .4 acres for $61k, its ARV is looking to be around $130k minimum. The town is VERY small (~2,000 population), very rural, but has gig internet and is less than an hour from Yellowstone/Cody, Thermopolis, and Ten Sleep, Wyoming. I'm guessing houses stay on the market there for quite a while, and obtaining this just before a Wyoming winter isn't all that ideal - however with the COVID19 situation, we're feeling lots of people are suddenly interested in living in small isolated towns - and one with GREAT internet and where chickens are allowed?! So appealing! Of course, we've been interested in investing in rural towns for years now. They often lack rentals, but as many have stated on the podcast show, you can get stable renters for life.

As auctions go, it's site unseen. As soon as the paperwork is complete, we'll be making a 3 hour drive to see the house to do our initial walk-through and decide how to prioritize the work...hopefully next week! And luckily, it appears that whoever had it last was trying to fix up the place. The pictures were low quality, but it does appear that the flooring might be new, and so is the water heater. Hopefully the roof is good condition, but really that's about the only thing that looked questionable (and also the pile of personal belongings left in the house). Does anyone know what to do when it comes with an abandoned vehicle?? There's a creepy van that we'd love to convert to a camper while we're at it ;)

We're so excited that we are finally starting our first real deal and we FINALLY get to make a blog post for people to follow along. Does anyone have any suggestions as to what do with a successful auction buy? It was all cash, so I wonder if getting it refinanced or a HELOC will be too hard.

Thanks for any help!

@Moises R Cosme Thank you! I will be sure to! I'm going to post the details from the BP calculator as soon as a deal is closed. I'm eager to see the real life differences between our estimate and what really happens!

@Tyler Bell We have plenty of cash on hand. Just no outside income. Not to mention, that is the main point of doing a BRRRR - to keep your cash!