evaluation - Posted by dan
Posted by dan on September 22, 2003 at 14:40:41:
as many of you know … investing in real estate can be a “go it alone” proposisition. Even though you are exposed to bankers, accountants, property owners, etc… it can be tough to get any good feedback on a deal. So I come here for reinforcement (or not).
SFH - similiar homes in neighborhood sold at $165-$170k
I have a contract for $133,500 … sellers pays attorney’s fees and $2500 toward closing costs (should cover my costs).
Needs carpet cleaning, drywall repair, paint (all under $1500)
Once I close, I will reapply for a new mortgage - appraisal should come in at $168,000. I can get a cash-out, refinance loan on an investment property with a rate of around 6.875 plus around 1.25 points plust a coulple of grand in costs.
At the end of the day, I will get an 80% loan of around $135,000 … a little more that I originally paid. This will cost me a few thousand and I will duplicate some fees, but I will have a property with $30,000 in equity and no cash out of my pocket.
This house will rent for $1150 to $1250 and my PITI will be around $1050ish. This is the third deal I have done like this (I have others I have bought differently) and it seems like, as long as I can find this deals (which are bank foreclosures)and the banks allow (they have no problem with seasoning as long as the appraisal is stron) I could do these all day long just be rotating the same money in and out. I could do 3 or 4 a month this way.
Just food for thouht and looking for feedback from others that the wife and the cats!