Posted by judd on March 18, 2001 at 02:56:23:
I have houses in Tx and Al. No income taxes in Texasa as you mentioned, but property taxes are around $1300-1400 per year. Similar house in Alabama runs between $350-450 per year. Which is better depends on where you are finacially, and what your goals are.
Good luck to all.
Would you do this deal? - Posted by Bud Branstetter
Posted by Bud Branstetter on March 16, 2001 at 21:44:54:
This is predicated on you having the funds and taking subject to ( Pactrust of course.)
SFR 4-3-2, 2500 sqft, gated community, 2 yr old
1st Mortgage $136,852 at $ 946.18/mo
2nd Mortgage $ 4,000 at $ 256.14/mo
Taxes $333.57/mo
Insurance $60.50/mo
HOA dues $30/mo
FMV $190,000 reliable comps and the market is hot.
Seller wants to payoff a 401K loan of 20K that was used to pay down the second.
Seller wants 10K net in addition to the 20K. Movers are scheduled, airline tickets are purchased, and job transfer has been requested but not certain.
Seller is not willing to roll over 401K to self directed IRA and loan money back.
Investor is left with buying in for 30K and trying to liquidate immediately or keeping the money invested for cash flow. I would think the 2nd should be paid off if longer term cash flow were wanted
Re: Would you do this deal? No. (nt) - Posted by Mark (SDCA)
Posted by Mark (SDCA) on March 19, 2001 at 11:26:45:
nt
Re: Would you do this deal? - Posted by BR
Posted by BR on March 17, 2001 at 14:34:43:
Bud,
Have you checked your email lately?
Re: Would you do this deal? - Posted by Carol
Posted by Carol on March 17, 2001 at 06:08:52:
Bud,
A couple of qtns:
has this property already been on the market?
Are you including the carrying costs before turning it over (unless you can get someone in there before the first payments come due)
And what could it rent for - if you are considering keeping it for cash flow?
We are already up to a monthly drain of about $1500, right?
Assuming everything else were right, I guess the question is what are the alternative uses of the funds, how confident are you of the time frame?
But as I read it,you are in for $30 plus $140 in mortgages, and you best hope is to sell at $190 with a gross profit of $20, with closing costs whittling that down yet more. Right?An OK deal if you have a buyer in place before you commit!
Regards,
Carol
Re: Would you do this deal? - Posted by Robert(AL)
Posted by Robert(AL) on March 17, 2001 at 24:53:07:
Taxes $333.57/month??? Man it sure is great to be in Alabama. A house of that FMV would only be around $600/year here.
Robert
No changing the deal - Posted by Bud Branstetter
Posted by Bud Branstetter on March 17, 2001 at 09:53:49:
Alternative uses for an investor is always that you can double your money yearly. Time frame is always subjective and depends on marketing or value. No buyer in place at the time you decide if you will or won’t. Appreciation has been double digit in this area and is expected to stay healty. You have to make your decision on this information.
Re: Would you do this deal? - Posted by Michael (tejas)
Posted by Michael (tejas) on March 17, 2001 at 12:52:45:
Or would you rather have no state income tax as
we do in Texas?
Re: No changing the deal - Posted by CurtNY
Posted by CurtNY on March 19, 2001 at 12:17:31:
Bud,
If I couldn’t change the terms, no I wouldn’t do the deal as is. Too much money up front. If they would hold a third for the $30,000 (they could try and sell the note at closing for the money) then maybe. Best of Luck!
CurtNY