C o n f u c i a n
New member
for rental purposes? Found a cute little house for cheap. Best part is it is being sold on land contract. Owner is actually willing to privately finance for up to 30 years. I would only need 4 or 5 years at the most to pay the house off though.
Asking price is $28,000 with $3,000 down. Remaining $25,000 to be paid off on negotiable terms...
House has 2 tiny rooms, a tiny kitchen with stackable washer/dry, fridge, stove, pantry....
1 bathroom.
Small living room.
Decent back yard....
Main problem is that it is tiny and the furnace is in the living room but it has a covering that is painted black so it sort of looks like a cabinet...
New paint, carpet, decorated already and looks nice (not sure if furniture stays). Appliances do stay though.
Taxes are dirt cheap ($1300).
The way I am looking at it is that my monthly payment will probably be $400-$500 for a few years (5 years max).
I think if I was lucky I could get $700 a month. But even if I got $500 a month (would be a steal for the tenant) that would cover my monthly payment to pay off the house...
And $500/month isn't a lot, but once the house is paid for, I'd pocket the $500 for 10 months out of the year and the remaining 2 months would cover most of the taxes....
So seems like not a bad investment. I am fully aware of the risks involved regarding tenants, collecting, the eviction process, repairs, etc.
The house is small, but definitely spic and span.
What do you think?
No garage, no air conditioning, no basement/upstairs....not a dangerous area at all.....if there was another room and a slightly larger living room then I could easily get $800.....I think for this place $650 would be fair value....
Iffy---It's profitable out the gate. I collect $600 worst case scenario per month and my payment will only be $400 .....Very well worth it because of the simple fact that it is impossible to duplicate this scenario. 9 times out of 10 you have to apply for a mortgage with a bank. This is a once in a lifetime opportunity to purchase on land contract, paying directly to the owner.
It is an easy decision but I wanted to get others opinions...It will turn into a nice cash flow for a while and when the housing market comes back this house will be worth at least $35,000 to $40,000, at which point I will sell it and a bank will give me a jackpot all cash wire transfer and I will laugh all the way to the bank!!!!
Asking price is $28,000 with $3,000 down. Remaining $25,000 to be paid off on negotiable terms...
House has 2 tiny rooms, a tiny kitchen with stackable washer/dry, fridge, stove, pantry....
1 bathroom.
Small living room.
Decent back yard....
Main problem is that it is tiny and the furnace is in the living room but it has a covering that is painted black so it sort of looks like a cabinet...
New paint, carpet, decorated already and looks nice (not sure if furniture stays). Appliances do stay though.
Taxes are dirt cheap ($1300).
The way I am looking at it is that my monthly payment will probably be $400-$500 for a few years (5 years max).
I think if I was lucky I could get $700 a month. But even if I got $500 a month (would be a steal for the tenant) that would cover my monthly payment to pay off the house...
And $500/month isn't a lot, but once the house is paid for, I'd pocket the $500 for 10 months out of the year and the remaining 2 months would cover most of the taxes....
So seems like not a bad investment. I am fully aware of the risks involved regarding tenants, collecting, the eviction process, repairs, etc.
The house is small, but definitely spic and span.
What do you think?
No garage, no air conditioning, no basement/upstairs....not a dangerous area at all.....if there was another room and a slightly larger living room then I could easily get $800.....I think for this place $650 would be fair value....
Iffy---It's profitable out the gate. I collect $600 worst case scenario per month and my payment will only be $400 .....Very well worth it because of the simple fact that it is impossible to duplicate this scenario. 9 times out of 10 you have to apply for a mortgage with a bank. This is a once in a lifetime opportunity to purchase on land contract, paying directly to the owner.
It is an easy decision but I wanted to get others opinions...It will turn into a nice cash flow for a while and when the housing market comes back this house will be worth at least $35,000 to $40,000, at which point I will sell it and a bank will give me a jackpot all cash wire transfer and I will laugh all the way to the bank!!!!