OfflineHi everybody, I have finally gotten started. Nothing is concrete just yet, but me and my girlfriend went and looked at a house yesterday, and we have a real estate agent who is good friends with her family, so that helps. Plus she is investor friendly and is helping us out with investing. So the house is 6 bedrooms and 3 bathrooms. It has an inlaw apartment that is 2 bd and one bath attached to it. We want to rent that out to pay for the mortgage and live in the other side that is 4 bd and 2 bath and fix it up while we are there. We want to turn it into a 3 bd 3 bath by turning a small bedroom next to the master one into a master bath.
So the house is on the marker for 99,000 and the agent said the bank might take 80-85 thousand. Now just last october the house was valued at 232,000, and 251,000 back in 06. So when this house is liveable, it is worth 3 times what we can buy it for. It will probably take about 40,000 to get it back to real nice condition. So we will be able to put in a total of about 120,000 to maybe 130,000 and it will be worth over 250,000 when we are done.
Now the only problem we might be running into is that I currently am working for myself and don't really have any proof of income because I just started, and she doesn't make all that much money. I am currently looking for private funding juts incase we cant do it alone to maybe partner with because the house is worth it. What does everyone think of this, and what other options could we use to lock this place up with our current situation? Thanks
Starting point would be having your agent pull comps to see what it's truly worth today to see if you have a deal or not. It doesn't matter what it was worth two years ago or even last year. Pull comparative sold houses as close as possible to this one.
If you find the comps at $125k, and they want only $80k, plus $40k to fix it, you don't have a deal.
That's the starting point on the analysis. Good luck!
- Tom
I think Tom is right. You should get comps for the last 3- 6 months. It doesn't matter what it sold for in 06. Only what FMV is today. It sounds great with the in law house to help off set the mortgage. Just do your homework.
Good Luck
Debbie
Hey Bobby - anything further on this? Are you pursuing it?
Good luck - Tom
You don't need '06 comps, you don't need 3-6 month old comps. You need comps from TODAY. That will start your analysis. Getting a POF is no problem, if you want to INVEST in it. If you want to OWN it yourselves, a great mortgage broker should be able to help you. If you can afford the place, and your credit isn't wrecked, they'll have some way to get you financed. Markets have fallen so badly nationwide, it's not wise to hope any property will go completely back to what it used to be worth. Plus, make sure you don't "fall in love" with the place if you use it to invest. If you want to live in it, make sure you buy it right. Best of luck to you...
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