Update on my real estate investment decision

[thefed]

I went with house # 2! Lol...I'm sure you all remember (sarcasm) which was house 2.

all in all, I'll be done rehabbing it in 3 weeks. I will have 21k in the deal. It just appraised at 45k. It is rented already, and it'll cashflow 300/month.

NOW, I'm taking out a HELOC of about 35k against that property to obtain another.

hopefully the cycle continues....

 

[Arif]

I went with house # 2! Lol...I'm sure you all remember (sarcasm) which was house 2.

all in all, I'll be done rehabbing it in 3 weeks. I will have 21k in the deal. It just appraised at 45k. It is rented already, and it'll cashflow 300/month.

NOW, I'm taking out a HELOC of about 35k against that property to obtain another.

hopefully the cycle continues....

Be careful young grass hopper! You just might double your networth in a year and earn over 16%

 

[wabmester]

$3600 year on a $21K investment is outstanding. Buy as many of those as you can find.

 

[thefed]

$3600 year on a $21K investment is outstanding. Buy as many of those as you can find.

21k investment? Did i mention that only 5k of that was cash, the rest was on a HELOC on my primary residence?

So NOW whats my return? about 70%? lol

My goal is to keep a house here and there that cashflows well (min 200/month). And keep upgrading homes til I can buy/hold some nice duplexes or 4plexes.

right now, only the urban 25k homes cashflow for me, due to financing going up up up.

To me, the cashflow is a bonus. Instant equity at closing is my bread and butter.

 

[thefed]

For anyone who cares, this is whats going on:

From my originalRE post, i bought home # 2. Home # 1 is still on the market and dropped 20% on MLS. They want 12.5k, its tax value is 45k. I am going to try to offer 8k, in an effort to get a counter offer of 10k. I need to put about 8k into it to get it up to par, but will allow for abou 12k.

Purchase price 10k, 12k improvements, one year olding costs of 3k, would be 25k in it. not bad.

My only reserve is that it's a two bedroom. from what I hear, 2 beds are MUCH harder to sell, and even rent.

we'll see.....

 

[Brat]

two bedroom. from what I hear, 2 beds are MUCH harder to sell, and even rent.

we'll see.....

About selling, I know nothing.  But as a rental I would expect high interest.  As a single two bedrooms were great for room-mate arrangements.  As a retiree a two bedroom gives space for guest or office/crafts (aka, the 'junk room').

 

[Bimmerbill]

10K for a house? Where are you located? Up here in the New England you can't even touch an old single wide on its own land for less than $225K...

 

[thefed]

akron ohio

and its NOT as bad a house as you might expect. i'll post the mls pics when i get a chance. its a small 800 sf ranch, slab, 1/3 acre yard in the city limits. its 1 mile from the hood

 

[thefed]

About selling, I know nothing. But as a rental I would expect high interest. As a single two bedrooms were great for room-mate arrangements. As a retiree a two bedroom gives space for guest or office/crafts (aka, the 'junk room').

i rented a 2 bd the first time i got an apartment. but realtors around here tell me theyre hard to get rid of....

 

[SLC Tortfeasor]

Just gotta chime in on this one to share my joy.  I bought my 2 bed, 2 bath bungalow 3.5 years ago here in Salt Lake City for $170K.  I put about $10K into it.  It's under contract now (closing is Monday) for $260K.  Pretty amazing appreciation for Utah.

 

[brewer12345]

Just gotta chime in on this one to share my joy.  I bought my 2 bed, 2 bath bungalow 3.5 years ago here in Salt Lake City for $170K.  I put about $10K into it.  It's under contract now (closing is Monday) for $260K.  Pretty amazing appreciation for Utah.

SLC was this a rental unit, or your personal residence.

 

[thefed]

SLC was this a rental unit, or your personal residence.

i think i know what you're getting at brewer....

 

[brewer12345]

i think i know what you're getting at brewer....

You do? I don't think I was driving at anything in particular.

 

[thefed]

I ASSumed you were getting at the tax implications of the sale.

 

[brewer12345]

I ASSumed you were getting at the tax implications of the sale. 

Nah, just idle curiosity as to whether he was dabbling in RE on the side.

 

[SLC Tortfeasor]

SLC was this a rental unit, or your personal residence.

My personal home.

 

[honobob]

Just gotta chime in on this one to share my joy.* I bought my 2 bed, 2 bath bungalow 3.5 years ago here in Salt Lake City for $170K.* I put about $10K into it.* It's under contract now (closing is Monday) for $260K.* Pretty amazing appreciation for Utah.

Great for you!! Sounds like about 15% a year. Sure beats the stock market. I'm curious about the Ft. Douglas/U. of Utah area though. Is this a newer area? Neighborhoodscout.com shows all of SLC appreciating annually since 1990 at 16.02% and 14.2% annually over the last two years. but shows the Ft D/U of U NBHD appreciating a total of 590.13% over the last 18 years for an annual rate of 32.78%! Are you familiar with the area?