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I can't figure out how it was so quickly flipped/turned around. Maybe it was a shady landlord who just slapped some bandaids on it (paint and drywall) and are renting it? There is a crumby rental house just next to it.
If I bought such a property what kind of money would I need to spend monthly, just to keep it, as i lived with my girlfriend or family?
I guess that is subjective since every area has different property taxes???
On www.realtor.com , if you look at a particular house, it'll tell you what the house sold for last time, what the estimated payment would be, etc.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,348 posts, read 8,564,711 times
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Quote:
Originally Posted by LifeIsGood01
A home in that bad of a condition where it's $17K in a $100K at least median priced area would never qualify for financing due to problems. A bank is not going to loan you money when that asset is falling apart or so worthless that you might walk away from it and they can't resell it. Plus the OP said he had the $17K.
My response was not in getting the financing for 17k, it was based on the poster who said they could fix it up and pull the cash out and then buy another. My response was a cautionary one in that if the op wanted to do that, they had to make sure the final value exceeded $71k or a bank will not do the cash out refinance.
The op had the 17 k, but Indicated he had a total of 20k and that was all. Bring that it sold for $26 k plus the closing costs he would not have been able to swing the deal.
There is SO much to learn in doing this. The only reason that we have done it is that one of us is knowledgeable enough to do our own inspections, and do the work.
You could wind up buying a contaminated property - heating oil, asbestos, lead. These are very expensive to fix - a house that you buy for 17K could require a 100K of remediation, then another 100K to repair, and after all that, be worth..... 17K, because of the terrible neighborhood.
Inspectors are NOT all great at it. Over the years we had inspections done by inspectors, and they missed stuff - expensive to fix stuff.
Some neighborhoods are too dangerous for you to enter to fix up the house. You're at risk of being mugged just being there. Some neighborhoods, the house will be stripped overnight of its copper and appliances right before you sell it. When we do fix ups on houses in bad neighborhoods, we hire someone to live in the house as it is under repair, until we have it rented out.
If you don't permit and get inspected, the building department could force you to rip out everything you've done, and do it right.
Do you get my point? This is not a business one can easily get into. It's not just going in and painting and putting up draperies. It's filthy, disgusting, potentially dangerous work, and you'd better know what you're getting into, before you put any money into it.
A potentially better idea is to buy a two or three family house in run down but easily fixed up condition, move into it and fix it up, and rent out the other one or two units for income. That way, you live for free, because the income pays the mortgage and taxes and repairs, plus if it's a three family or four family, you might have income, too. Owner-occupied often qualifies for all sorts of subsidized mortgages, or gets you first shot at buying from the government loan foreclosure stock, like Fannie Mae and Freddie Mac.
118 years old. Honestly I wouldn't have bought that house for $75,00, to be honest. I saw what it looked like before. I mean I didn't walk right up to it and check it up-close, but it looked worked over.
Quote:
Originally Posted by Sassybluesy
On www.realtor.com , if you look at a particular house, it'll tell you what the house sold for last time, what the estimated payment would be, etc.
Indeed that site shows it was listed for $17,900...sold again for $31,000 the next month, and then for another $100,000 on top of it all.
That's very interesting. I wonder what all those transaction entailed!
Quote:
Originally Posted by parentologist
There is SO much to learn in doing this. The only reason that we have done it is that one of us is knowledgeable enough to do our own inspections, and do the work.
You could wind up buying a contaminated property - heating oil, asbestos, lead. These are very expensive to fix - a house that you buy for 17K could require a 100K of remediation, then another 100K to repair, and after all that, be worth..... 17K, because of the terrible neighborhood.
Inspectors are NOT all great at it. Over the years we had inspections done by inspectors, and they missed stuff - expensive to fix stuff.
Some neighborhoods are too dangerous for you to enter to fix up the house. You're at risk of being mugged just being there. Some neighborhoods, the house will be stripped overnight of its copper and appliances right before you sell it. When we do fix ups on houses in bad neighborhoods, we hire someone to live in the house as it is under repair, until we have it rented out.
If you don't permit and get inspected, the building department could force you to rip out everything you've done, and do it right.
Do you get my point? This is not a business one can easily get into. It's not just going in and painting and putting up draperies. It's filthy, disgusting, potentially dangerous work, and you'd better know what you're getting into, before you put any money into it.
I get what you're saying. Do you have any opinion on that house above?
Do you think they made out okay, or is it way too hard to project what a person(s) invested in it?
I bet there is a staggering amount of money to be made in real-estate after seeing that house flip for what it did. Not sure (obviously) but just from an outside looking in it looks like bookoo dough to be had there. But as they say 'it takes money to make money'.
A potentially better idea is to buy a two or three family house in run down but easily fixed up condition, move into it and fix it up, and rent out the other one or two units for income. That way, you live for free, because the income pays the mortgage and taxes and repairs, plus if it's a three family or four family, you might have income, too. Owner-occupied often qualifies for all sorts of subsidized mortgages, or gets you first shot at buying from the government loan foreclosure stock, like Fannie Mae and Freddie Mac.
I think this is the most appealing idea for me. Now if I can just scratch together a quarter million (or more...)
My sister and her husband bought a home for under $20,000 in Arkansas. I think it is on 5 acres of land or something. They have no plans on selling and hope to retire there someday.
My sister and brother in law are a bit sophisticated when it comes to real estate investments than I am. They have rentals in Southern California, the Phoenix area, and this one home in Arkansas.
For the Arkansas home they were paying for the dirt that the home sits on. It was in bad shape.
To make that home livable they have dropped another $60,000 on the home. They are not done yet. For them they have no plans to sell this home.
What I am saying though, is that if a home is selling for under $20,000 and someone fixes it up to flip and the home sells for over $100,000 then realize that they dropped some money into the home. Anyone else is going to have to be prepared to do the same thing.
I prefer the stock market my self. I would rather place my money on the market and let those that are more sophisticated investors manage my money.
118 years old. Honestly I wouldn't have bought that house for $75,00, to be honest. I saw what it looked like before. I mean I didn't walk right up to it and check it up-close, but it looked worked over.
'.
Old homes are often better than new homes. They were built to better standards many times than to what homes are now and had much better craftsmanship. As long as the Windows, foundation, electricity and plumbing are updated an old home can be better than a newer one.
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