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TheFed just picked up an $85k home for $17k......yep, another one!
07-01-2009, 07:02 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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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...
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07-01-2009, 07:11 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,806
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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
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07-01-2009, 07:22 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
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Hey man! I love to see this kind of stuff. Pics and numbers. Good luck to a great flip!
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07-01-2009, 08:11 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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Quote:
Originally Posted by ERD50
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
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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
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07-01-2009, 09:19 PM
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#5
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,773
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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
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07-01-2009, 09:54 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
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Quote:
Originally Posted by thefed
More big things need done here...new heat/AC, h20 tank, kitchen cabinets, counters, taking out a wall, some windows etc etc.
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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.
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07-02-2009, 05:37 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Mar 2008
Location: Jalisco, Mexico
Posts: 1,738
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Quote:
Originally Posted by thefed
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...
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Just please tell me the investment fund checking account requires more than one signature.....
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07-02-2009, 06:17 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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Quote:
Originally Posted by samclem
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.
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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...
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07-02-2009, 06:56 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Mar 2005
Posts: 2,592
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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
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07-03-2009, 05:58 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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Quote:
Originally Posted by tryan
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.
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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. $$$$$$!!!
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07-28-2009, 10:48 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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07-28-2009, 03:31 PM
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#12
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Full time employment: Posting here.
Join Date: Aug 2005
Posts: 945
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Where are these located (city, state) Just curious what kind of neighborhood it is, in terms of finding good tenant.
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07-28-2009, 09:15 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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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...
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07-29-2009, 08:07 AM
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#14
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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Pretty nice house for that price ! Have fun with your redo!
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08-03-2009, 08:39 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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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
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08-03-2009, 08:50 PM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,764
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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." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
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08-06-2009, 08:53 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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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.
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