Advice needed from experienced investors - Posted by Andreas
Posted by Andreas on April 12, 2002 at 16:42:30:
Hello All I am new to the forum and would like to ask for advice/opions on how I should proceed on my next 2 deals. First let me give you a quick background on the other 3 since they will play a role in my next purchase.
The first property I bought in 98 was a co-op that needed to be renovated. I purchased the property all cash, then did the repairs right away. I am currently renting the place for $1450 and my payment to the association is $717 for everything.
Second property was a single family home that I bought remodeled and the sold for a profit. I took the profit and paid off all my credit card bills (quite a lot). The rest of the money I am using for a downpayment on what will be my families home (getting married in July).
This house is a duplex. I will rent the one side and live in the other. I was able to obtain a mortgage (LIBOR ARM) that is interest only for ten years with a 25 year term, which currently a low %. To do that I had to use my stocks as collateral. With this mortgage and rental income I will not be paying to live in the house and if I rent the basement (not on my side) I will even have some cashflow.
Now here is what I am considering for next steps:
The house my fiancee is living in has been offered to us to purchase for $225k w/ 15% down with the current owner holding the note.
Here are the financials:
Rent per month: 1st & 2nd Floor $800, 3rd $525.
The rent for the 1st should be at least $950 and it will still be below market. The 3rd (where my finance lives) should be $650 because all utlities except for phone and cable are included.
The house is about 80 yrs old. While the roof does not leak it will probably need replacing in 5yrs. The kitchens are okay they probably could use an updating some time in the future and since the house is that old the walls are plaster and the walls and ceiling are wavy. The tenants pay the gas and electric (3rd floor is heated by 2nd.
What do you think of this opportunity?
I have also been considering getting a mortgage on my co-op of about $70k (could sell for $100k) and using that as a downpayment to by another investment property. What do you think of that idea?
Thanx for any suggestion/advice and Sorry for the long post and any misspelled words