Tomorrow I am attempting to buy this......

[blu_fuz]

Going to put an offer in on this house to use it as a rental property. So excited, but so scared to take the chance on it. I already own a home, have a family, but trying to set us up for the long haul.

1200 sq ft
2 bedroom
1 bath

Stupid cheap. Move in ready. I'm hoping I can't lose even if using it as a rental doesn't work out and we have to sell in a couple years.

 

[redbenjoe]

cute shack --real good long range $$ planning idea , joe

how much is dirt cheap up there ?

down here --that would be 150, 000

 

[blu_fuz]

. Its listed for $37,000. Tax assesment is $60k, so I can't go wrong.

 

[Terry]

That's a $330,000 - $350,000 house here, rental return would be $1500 - $1600/mo.

 

[blu_fuz]

Rent will be between 6-$700.

 

[Fatdog]

That would be great for an older couple with no kids. Good luck, Joe!

 

[Superduper]

$37k? Dude, don't "try", just get it already! A few more incredible eBay flips and that's an all-casher for you. That a HUD foreclosure?

 

[Northerner]

Good luck!...if its done right this is a good way to make money. Buy to let is pretty popular in the uk

 

[baddboybill]

Good luck Joe. It looks like nice place. That house in Chicago would probably be $350,000

 

[superlew]

Get it! For that price you can't get a parking space around here. Seriously.

 

[alfie]

Go for it.

I just got a$25000 quote to do my yard.
It's only 150 square meters!

 

[Lasonic TRC-920]

Damn Dude, that's a great deal.....Think of how many Blaster's you can store in that sucker!

 

[blu_fuz]

$37k? Dude, don't "try", just get it already! A few more incredible eBay flips and that's an all-casher for you. That a HUD foreclosure?

I am friends with the previous owner(s).

Him and his wife got a divorce and walked away from the property and took a hit on their credit.

The bank sent it to auction about 2 months ago and it was sold to a HUD/Fannie/Mac type of company.

Then 16 days ago it was listed for "owner/occupants" to buy it as a first home with only 3% down. They have had NO offers in the 16 days. Then today the listing is open to "investors" to buy as a flip/rental type income property. For an investor to buy, it is 15% down, have to keep the property for 12 months or you pay double on the capitol gains, etc.

I just got back from putting my offer in. The only "repairs" it needs right now is the piping for the radiant heat (boiler) isn't holding pressure so there is a leak somewhere. Water has been off so there is no water damage or issues like that. There are 3 cracked windows that need to be replaced. There is a few spots of peeling paint outside that need to be scraped and repainted.

 

[AE_Stereo]

$37,000 is the selling price for the property?
It will be one year rental cost here for the same size home.

Home. Sweet Home.

 

[blu_fuz]

Just got back from the real estate company. My offer is in, pending financing and inspection


So excited but I'm freaking out a little....

 

[jimmyjimmy19702010]

Just got back from the real estate company. My offer is in, pending financing and inspection


So excited but I'm freaking out a little....

I thinking you're making a good financial decision buying property for rental purposes. The rental income should make this project a nice little earner.

My new work van is costing me more than your house!

Good luck,

James

 

[blu_fuz]

I worked out the numbers...... a litte


Best/worst case senarios:

Best case, keeping it for 15 years
-if rent is $700 we should NET about $36,000 profit after all our income tax is figured in
-in 15 years the house would be paid off and have a value of AT LEAST $60,000 assessed value
-if we stuck with it for 15 years, we could have about $81,000 net profit if we decide to sell

Worst case
-can't find renters
-get overwhelmed with too much to pay for over a couple years
-list it for sale hoping to get $60,000 and could/should still net us $45,000 (+/-10k) in just few years


So, the worst case and the best case senarios both have a good outcome for us which is why I like the deal. I feel that I can't lose.

 

[k2j]

Right on Joe, thats great! I'm sure it will all work out

 

[Lasonic TRC-920]

Whats the condition of the house? Is it rental ready?

 

[blu_fuz]

Whats the condition of the house? Is it rental ready?

The only "repairs" it needs right now is the piping for the radiant heat (boiler) isn't holding pressure so there is a leak somewhere. Water has been off so there is no water damage or issues like that. There are 3 cracked windows that need to be replaced. There is a few spots of peeling paint outside that need to be scraped and repainted.

^^^^^