Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
TheFed just picked up an $85k home for $17k......yep, another one!
Old 07-01-2009, 08:02 PM   #1
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
TheFed just picked up an $85k home for $17k......yep, another one!

This home is slightly less roomy than the other and has its own bit of problems...but I'm excited nonetheless!

Tax appraisal is 85k, and I can realistically see it selling for 75-80k in a couple years (need to keep it at least 1 yr for capital gains treatment). I anticipate a budget of $18k going in....but we will finalize that in the coming weeks. More big things need done here...new heat/AC, h20 tank, kitchen cabinets, counters, taking out a wall, some windows etc etc.

I'll take some before and after pics again...
__________________

__________________
thefed is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-01-2009, 08:11 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,298
capital gains:

Just make sure you have a rough number of what short term vs long term cap gains would mean to you. You don't want to lose a good offer - be ready to weight the offer against the actual tax $ diff and the risk of not getting another offer at greater than the diff. IOW, you don't "need" to keep it > 1 year, you may want to if the economics/risk make sense.


Remind me - did you sell your other one yet? Renting it out?

-ERD50
__________________

__________________
ERD50 is online now   Reply With Quote
Old 07-01-2009, 08:22 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Dec 2007
Posts: 4,764
Hey man! I love to see this kind of stuff. Pics and numbers. Good luck to a great flip!
__________________
Notmuchlonger is offline   Reply With Quote
Old 07-01-2009, 09:11 PM   #4
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
Quote:
Originally Posted by ERD50 View Post
capital gains:

Just make sure you have a rough number of what short term vs long term cap gains would mean to you. You don't want to lose a good offer - be ready to weight the offer against the actual tax $ diff and the risk of not getting another offer at greater than the diff. IOW, you don't "need" to keep it > 1 year, you may want to if the economics/risk make sense.


Remind me - did you sell your other one yet? Renting it out?

-ERD50
Thanks for the input. I have a pretty rock solid business plan with my partner and business agreement that spells out how our 1st 3 deals must go unless we both agree otherwise...so as of now 1yr is the minimum we will hold. B keep in mind that he is in the highest tax brackets so it makes more sense for him ... so it was a negotiating point when we worked out the details.

The other one is rented for $700 /mo and the tenant put down a few thousand toward a lease option in addition to a few thousand in upgrades that we split with him. I can see him getting a mortgage within the 2 year option period
__________________
thefed is offline   Reply With Quote
Old 07-01-2009, 10:19 PM   #5
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
Sounds like another successful venture for TheFed! Glad your arrangement with your partner is working out so well.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 07-01-2009, 10:54 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,616
Quote:
Originally Posted by thefed View Post
More big things need done here...new heat/AC, h20 tank, kitchen cabinets, counters, taking out a wall, some windows etc etc.
Regarding the furnace and A/C: Lots of folks will be replacing theirs with high-efficiency ones in the next year--some already have. You could probably get perfectly serviceable used equipment for a song. Maybe contact some HVAC contractors in your area.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Old 07-02-2009, 06:37 AM   #7
Full time employment: Posting here.
dixonge's Avatar
 
Join Date: Mar 2008
Location: Ajijic
Posts: 848
Quote:
Originally Posted by thefed View Post
This home is slightly less roomy than the other and has its own bit of problems...but I'm excited nonetheless!

Tax appraisal is 85k, and I can realistically see it selling for 75-80k in a couple years (need to keep it at least 1 yr for capital gains treatment). I anticipate a budget of $18k going in....but we will finalize that in the coming weeks. More big things need done here...new heat/AC, h20 tank, kitchen cabinets, counters, taking out a wall, some windows etc etc.

I'll take some before and after pics again...
Just please tell me the investment fund checking account requires more than one signature.....
__________________
dixonge is offline   Reply With Quote
Old 07-02-2009, 07:17 AM   #8
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
Quote:
Originally Posted by samclem View Post
Regarding the furnace and A/C: Lots of folks will be replacing theirs with high-efficiency ones in the next year--some already have. You could probably get perfectly serviceable used equipment for a song. Maybe contact some HVAC contractors in your area.
never really thought of this...i have several hvac buddies because i am in the industry...i'll make a few calls today! an 80% efficient would be fine for this, although i can buy a decent 80% for this sized home for only $600 new...
__________________
thefed is offline   Reply With Quote
Old 07-02-2009, 07:56 AM   #9
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Fed,

Congrats!

Another HUD home? Just curious, what was the list? I've only been able to get hud to budge 10% off the list. Then they let it sit for another several months ... some times tied up with buyers thinking they'll get financing for these gems (which doesn't happen - uninhabitable).

17k is a no-brainer! I am throwing 50-60k cash at listings in the 85-115 range. Not happening ... yet.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 07-03-2009, 06:58 AM   #10
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
Quote:
Originally Posted by tryan View Post
Fed,

Congrats!

Another HUD home? Just curious, what was the list? I've only been able to get hud to budge 10% off the list. Then they let it sit for another several months ... some times tied up with buyers thinking they'll get financing for these gems (which doesn't happen - uninhabitable).

17k is a no-brainer! I am throwing 50-60k cash at listings in the 85-115 range. Not happening ... yet.
this was actually bank owned and on mls. it was listed at 25k for about 4 weeks. nobody, including myself, realized the OVERGROWN abandoned lot behind the garage was part of the parcel (i assume). Without it, there is NO back yard, and a small un-unusable side yard. That would've been the biggest drawback besides only one bathroom.

Leave it to my partner to add another project however....we are now putting a 1/2 bath in the upstairs to create a master suite. $$$$$$!!!
__________________
thefed is offline   Reply With Quote
Old 07-28-2009, 11:48 AM   #11
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
324 e huston pictures by thefed17 - Photobucket

BEFORE PICS
__________________
thefed is offline   Reply With Quote
Old 07-28-2009, 04:31 PM   #12
Full time employment: Posting here.
 
Join Date: Aug 2005
Posts: 942
Where are these located (city, state) Just curious what kind of neighborhood it is, in terms of finding good tenant.
__________________
modhatter is offline   Reply With Quote
Old 07-28-2009, 10:15 PM   #13
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
barberton oh. it's really hit or miss with tenants in the area. This neighborhood is pretty well kept...all the neighbors take care of their properties...
__________________
thefed is offline   Reply With Quote
Old 07-29-2009, 09:07 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,037
Pretty nice house for that price ! Have fun with your redo!
__________________
Moemg is offline   Reply With Quote
Old 08-03-2009, 09:39 PM   #15
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
We are using a lot more contractors on this one vs. the last house to help me keep my sanity (and ambition!).

We signed on Friday. The whole house has been re-plumbed, water service is on, electric is on, gas will be on tomorrow. The new upstairs bath has been roughed in. 1/2 of the demolition is done.

TOMORROW:


DUMPSTER ARRIVES
ENTIRE MATERIAL LIST DELIVERY COMING FROM LOWES
GAS BEING TURNED ON
FURNACE BEING INSTALLED
LANDSCAPER FINISHING UP 4 DAYS OF BRUSH CLEARING, VINE-RIPPING, AND LEAF RAKING

TREE COMPANY COMING FOR ESTIMATE ON EXTREME TRIMMING NEEDS
DEMOLITION TO BE COMPLETED

WED:


Exterior painter starts
Framing of new bath, and kitchen walls to beging
__________________
thefed is offline   Reply With Quote
Old 08-03-2009, 09:50 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: Following the nice weather
Posts: 6,441
I hope you are planning to keep the interior paint colors. I like that room with the orange, lavender, and turquoise color scheme.

This one actually looks better than the first one to my uneducated eye. Good luck on the project.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers, or maybe Sam Clemens
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Old 08-06-2009, 09:53 PM   #17
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
I'm really excited as we are moving along well. Demo is done. Cat urine stained floor cleanup is underway each day (bleaching, vinegar-ing, enzyme-ing, disinfecting) only to be following with 2 coats of shellac. Upstair bath is framed, and all re-wiring in upstairs is re-done (adding 3 can lights, a bath fan, one switch and one plug tomorrow - fixtures only). Roof is powerwashed and needed it BAD. Trees are all trimmed....best $550 we spent so far. 2 sides of house are painted. New furnace and all new ductwork to be completed tomorrow.


Aside from all that, considering the things I already mentioned (replumb, rough in, etc), I think we are in great shape for 7 days of ownership. I hope we can keep up the pace.
__________________

__________________
thefed is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Mrs. TheFed is starting another business..... thefed FIRE and Money 31 07-08-2009 10:40 PM
Just picked up a nice 110k home for 28k! thefed FIRE and Money 63 06-12-2009 11:03 AM
Yep, I'm new... lowflyer Hi, I am... 9 12-15-2006 08:35 PM
Yep - It's Like a Whole Other Country REWahoo Other topics 5 05-26-2006 11:40 AM
Yep, the new economy laurence Other topics 15 06-07-2005 10:25 AM

 

 
All times are GMT -6. The time now is 09:31 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.