All Forum Posts by: Tom C
Tom C has started 40 posts and replied 1025 times.
Post: Pics of a $25k SFH rental purchase?
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
Originally posted by Diane Menke:
Can you tell us what city you are in?
Sorry, no I cannot. There are too many people coming in now who do not know what they are doing and bidding up the prices of these homes.
Who is your usual tenant?
Tenants range from blue collar to no income, Sec 8.
These houses look like they were fairly turn key - true?
I don't understand what you mean by "turn key"
What kind of equity development can you expect? By that I mean is the city doing things, or the neighborhood perhaps, that will increase the value of your property? If so what and what is the time line you are looking at?
Equity comes in at the purchase. Every house I buy has at least 20 to 30K equity after rehab. The city is doing nothing to increase property values. Actually we have been at the bottom for years since we lost our steel industry. We really cannot go any lower.
Can you tell us a little about why these houses came to foreclosure? What economic events occurred to make these houses available to you?
Not really. Many people just walked. Some people sucked equity out of the homes, got a buy out from their factory and walked.
Did you buy these for cash or with a mortgage?
The first one I had to put down 5K and then mortgaged the rest through my Credit Union. After that I pulled cash out of each house to make another purchase. When you are buying homes for less then 25K, most banks will not write a loan for less then 50K, so cash is your only option.
Thanks very much
Diane
Post: Pics of a $25k SFH rental purchase?
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
Josh,
Most cost are plumbing, paints, sometimes roof repair, ceiling fans, electrical work. These have been left vacant for 1 to 2 years, which means they are in bad shape. All of them so far have required the missing copper to be replaced by PEX. I usually have to also go through and replace all shut off valves and I always find a split pipe some where in the ceiling or walls.
I always have to update the electrical in order to meet Sec 8 and city codes. This usually involves new outlets and wiring in some rooms.
I also include all holding cost into the rehab expense, gas, electrical water and trash. If you are interested, PM me and I can send you rehab lists for each property. I start the check list when I walk through the home for the first time and then adjust it as I go along.
Post: drug dealer in home
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
Many many drug dealers do not carry guns and have no interest in hurting anyone. In their mind, they are running a business and when pushed, they are more interested in staying under the radar and going away, then pushing back.
Don't make the mistake that all of them are thugs, looking to shoot you the minute you get in their face.
Post: ? re mark up rates and fees to tenants
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
Tim,
"As for me, my lease pretty much charges them every time I have to do something besides collect rent. I'm out of town and away from my leases right now but when I get back I'll see what language in there I have on mice."
Are you saying that if you have a leak under the sink and have to fix it, you charge the tenant for that fix?
Post: Pics of a $25k SFH rental purchase?
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
Tony,
I've uploaded 3 homes to my gallery. All were under 25K and are currently rented between $550 and $600 per month. Keep in mind, that the location of these homes are in the best area of the city, so I can get more in rents.
Post: Flip HUD with TRANSACTIONAL funding?
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
Really.. I thought he asked about HUDs and VA's too..
Post: The Dark side of buying a property with no money down
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
Lee,
I figured you were trying to sell something. Why else would you come to an investor site and state the obvious. I can't believe I am filling hard drive space by responding to this.. good grief!
Post: Inspection Necessary?
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
Will,
I think it depends on the property. I am certainly not going to spend $250 on an inspection for a $20,000 home when I am perfectly capable of doing it myself.
Post: Validate the 50% rule
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
Do you really think you are going to get many investors who are getting 1000 bucks per unit? I would think that most of us fall between the $400 to $800 per unit range.
Post: drug dealer in home
- Real Estate Investor
- Ohio
- Posts 1,067
- Votes 86
It amazes me how some people want to run a business, but are afraid to get their hands dirty.