All Forum Posts by: Zach Jones

@Joe Villeneuve That's my dilemma friend!!

@Drew Sygit The good news is I only live about 3 miles from the property.. night and day parts of town unfortunately.  I'm not sure on the true classification levels of things, but I'd say C/D for sure. The downside is I'd need to keep it for a while simply because the market is crazy high right now and the home really shouldn't be selling for that but that's what the markets calling for..

@Marc Winter Would 100% be a section 8 home, I'm fairly familiar with their pay processes, consistent / painless. Would I want my kid living there? Hell no, lol. But, median income is 29k in the area so its kind of the people living there accepting reality.. 

@Henry Lazerow Comps around are low 90s, I would absolutely be offering less but 95k is asking. It is on par with the current market, just overpriced in my opinion for the area.  2 years ago.. a 35k house all day.

@Joe Villeneuve I intend on thoroughly checking out the home/attic/crawl space/ and having an inspection of course. And I know what you mean as far as repairs, I know they exist, I'm simply referring to basic repairs such as AC/Interior Plumbing/Etc.  I think an inspection will really be the end all be all. The important comment you made though, the numbers.. I'm wondering if it financially makes sense? In under 3 years, I'll be made whole on my investment and be pocketing roughly 6k per year (pocketing all profits for future repairs/endeavors).  I know its not a "ton" of cash but I've  been trying to get a foot in the door in RE and the market is honestly absurd in my area. 

@JD Martinundefined 1- I say D because its a low income, not so pretty area.  This house definitely stands out a little simply because its been slightly beautified. 

2- couldn't agree with you more.  Very curious of an inspection.. framing is my biggest concern, 10 min from beach.. Hurricanes

3- Would you immediately be out just based on the age of the property?

4- I hope to be a LT holder on every piece of property I purchase. Its just scary knowing what the market looked like just a few years ago to the insane market craze we're currently dealing with and I'm scared to think I don't make a move on something like this and have the market keep its fire for another few years and the same home is 130k for some unknown random reason.

@EVERYONE I really appreciate all of your feedback, very thankful for having found BP. Awesome community full of knowledge and information

@Colleen F. I forgot to tag you but please see my reply above, thanks!

@Stephen Brown @Joe Villeneuve @Greg Scott Sorry guys.. appreciate the replies, the reason my original post was numberless is simply because I didn't have my journal with me.  And the home would be rented fairly quickly ideally, shouldn't have too much time vacant based on our current rental market.  Ignore my comment "under 4 years..cash flow", re-reading that I understand the confusion.

It is a much older home,1929 built frame 2/1. Interior needs nothing. All new. Home is 95k, I'd be looking at 20% down @ 19k. 30yr x 3.9 (approved at a 3.4 but I like to run higher numbers..) is a mortgage of roughly 500. Rent should easily be 1050, could probably get 1150 but using 1050. 6600 annual profit (I've not added any substantial for maint becuase it's all new), that equates to a 2.9 year ROI. The bigger issue for me is the home is almost 100 years old and it isn't in the best of areas for 95k and its definitely not an appreciation play.. but based on ROI I think its still a strong move for the LT hold.. any advice is appreciated! Thanks guys.

Hello all.. so I've been on BP for a few months now, kind of just reading/researching here and there and I can't seem to find anything too specific to my situation.  I live in the Daytona Beach area where the market is HOT right now, just as an example.. I purchased my home for about 135k five years ago and would list it for around 300 today, crazy! Even homes purchased 1 year ago for 145k are worth about 235k currently.. definitely upset looking at missed opportunity. 

Well, I've been hunting for a rental for awhile now with no real success.. I happened to find one that is fairly cheap at 95k. Unfortunately, this is not a home that I would expect to appreciate at all and its not in the best of areas (I've seen many people grading areas on this site, I'm not super familiar with the scoring system but I'd call this a D area). That all being said.. with 20% down, I could be looking at full ROI in about 3.5 years (the house was purchased for 8k -insane- about a year ago and completely redone).

My real question here is, what are your thoughts on a home that is too much money but has great ROI?? If I were to keep the home indefinitely, I feel like there is no real downside besides owing way too much on the home which obviously isn't a "good" situation but I think as long as you hold it as a rental, there is no real loss? In under 4 years it should have decent cash flow.. Please give me some opinions on this.. I'm a 27 yr old ho owns my primary residence with great equity and I'm really trying to get into the rental space.. Thanks in advance, I appreciate any and all advice!!