Thinking about selling 3 of my properties to upgrade to larger ones.
Long story short here ya go:
Price- $150,000.I will hold the loan meaning I could care less what your credit is or if you have a co-signer as long as you have the Downpayment.
Terms $25K(cash,CC purchase,Coins,Vehicle) down and will base it on a 20yr loan with a 5 yr call.This means you will be paying me like you took out a 20 yr loan but By the time the 60th month comes around I better have my cash.Kind of like a balloon payment like they have on cars.Property will be in YOUR name!
I currently get $3,350 a month from these and could pop them to $3500 without any fuss.Now go buy a double in Amherst for $130K and what will ya collect $1,500?LKPT is a great rental area.I’m comparing apples to oranges a little but when You have the green in your pocket…
Based on these #'s your expenses would be:
Mortgage-$970
Taxes- $650
Ins- $130
H20- $150
-------
Total= $1900
Rents= $3350
PROFIT= $1450 or $1600 if you raised them a month!!!That is a brand new Vette and Tahoe for free(GM guy here:)).
?'s that will be asked so I’ll try and answer them
1)Why would you sell if making that much?-I’m getting into larger properties and also with having a son last month want to relax a little(larger properties cost more but have less responsibilities)
2) 3 properties and the addresses are 161 Lock,160 or 162 Lock,and 232 Niagara LKPT,14094.2 3 units and a house.
3) are the houses in the “hood”?No.While I wouldn’t leave my car unlocked,it is safe for kids and you’re not going to get robbed.
4)Is it really That easy?NO!!! Will you make money?100% yes.Will you have headaches?Pretty good chance.3 of the tenants are there for life.They alone pay $1,550 and fix things themselves.(one bakes me cookies:))All tenants plan on staying for the time being and have no clue I’m thinking of selling.
Many people on here over the yrs have asked my advice on properties and how I made my money,etc.Here you go!!!
One other thing I forgot is that repairs are not very much at all and as long as you get a security deposit(don’t let them use it for last month’s rent!!!)will rarely cost very little out of pocket.HWT $400 every 10 yrs,80% furnace $1k every 10 yrs.You get the idea.
Also Most Damage can be painted/plastered,etc. very easily.
You will also have access to all the “contacts” I’ve made over the yrs.
$12hr/carpet installers, roofers,$25 window installs,etc.These are VERY important.
I have no problem if you get a loan as that is even better yet for me.It will cost you a little more money though(fees,appraisals,etc).Not sure what the benefit would be for you in doing so would.They are all paid for except for one I owe approx $18K I believe which I was planning on using the DP to pay off.No worries about them being repossessed or anything like that
LOL not sure on Y all the LKPT just like it.LIke stated above’LKPT’ is a great money making area for rentals as the place isn’t really that bad and for what you get for rent vs what ya pay for the properties is a huge deal.Go spend $150k in Amherst,Clarence,Kenmore and see if ya bring in $3,500 a mo.Yes these houses probably aren’t going in increase in value substantially ever but you’re still pulling in the cash which is most important.
All the people I know in the stock market(expect Joe and Cougar) took a beating in the stock market in the last year or so.I always tease them as I told them to buy real estate as you own it not a piece of paper that could be worthless overnight(highly unlikely but…Enron).They then come back with how the RE bubble burst and my properties are worth less.I just tell them I’m getting the same rent as I was 2 yrs ago and in some places more so it looks like I didn’t lose a penny!!!
it was 6 or 7.pretty sure 7% which may be a little high but apts usually are harder to finance anyways.You will save the difference over the 5 yrs in not paying all the extra.I know just the appraisal on 7 units would be close to $2k.Not saying it would be as much but think it would be close.
You see I mentioned you in my above post while you were replying:grouphug:.
I’m actually interested but I would need to take on a partner since i lack up front liquidity. I need to get on the horn, if one of my potentials is interested i would want to take a look.
i have a lot more balls with fake money. i make all the trades that theoretically should work but if not i wont eat that night.I do want to get into realestate though so I can write everything off. I pay way too much in taxes right now.
Joe, Are you just looking for investment property or looking to use one as an owner occupy/investment? My other question is, do you think there is a way to safely handle this transaction with 2 parties. I have the upfront liquidity but would just be looking to potentially hedge some of the risk and divide some of the work on the properties.
If you are serious, maybe we should meet for drinks to discuss.
LOL @ the papertrading superhero profits.
If only it were that easy. I’m not a fan of paper trading cause it doesn’t work on emotions at all. It’s good for a bit to learn to feel the market but not too many are able to treat it as real money. P&L always seems to be stellar on demo accounts.
Someone with cash could kick some serious ass with these properties. GLWS
SHOtime, i was thinking the same thing.
If I take on a partner, I was thinking either dividing them up, or doing a tenancy in common on the whole lot. I wasn’t going to live there, but for tax/stimulus reasons I’d have one unit be “owner occupied”
Well if you are serious, I would take a trip out there to at least look at the units and location as well as discuss some options on how to do something like this is you wanted to.
remember all that spring cleaning will be taking place as soon as the weather breaks.
Would def. take the time to drive out or explain some of the details to anyone.
