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Author Topic: Cheapest House Bought (Total Price)  (Read 12919 times)

Offline Danny(TX)

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Cheapest House Bought (Total Price)
« on: February 18, 2010, 10:48:34 pm »
What is the cheapest house you have bought?

Mine: Real El Dumpo that the city was about to schedule for demolition.  Seller called and said he needed to sell a house fast because he was going to jail.  Got to the house and it was a young guy covered in tattoos. 

Just started thinking that I hope he didn't think I actually brought cash with me to pay for houses.  House in horrible shape.  Not the worst I've seen though.  I didn't really want it so I offered him $1,000 and hoped that I was not giving him another reason to be going to jail.  He thought about it and came back with $5,000. I told him the most I would pay was $2,500 and he accepted. 

He then told me I would have to go to his Dad's house to have him sign the contract as it was still in his name.  Geeeeez.  Now I have to explain to his dad that we agreed on $2,500 for his house!  Well......the dad did not even flinch...signed quickly, without hassle. 

Quickly sold to a landlord (fully disclosing the demo hearing with the city).   

Danny Johnson
San Antonio, TX
http://www.dannybuyshouses.com

Offline davewindsor

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Re: Cheapest House Bought (Total Price)
« Reply #1 on: February 19, 2010, 06:57:46 am »
What is the cheapest house you have bought?

Mine: Real El Dumpo that the city was about to schedule for demolition.  Seller called and said he needed to sell a house fast because he was going to jail.  Got to the house and it was a young guy covered in tattoos. 

Just started thinking that I hope he didn't think I actually brought cash with me to pay for houses.  House in horrible shape.  Not the worst I've seen though.  I didn't really want it so I offered him $1,000 and hoped that I was not giving him another reason to be going to jail.  He thought about it and came back with $5,000. I told him the most I would pay was $2,500 and he accepted. 

He then told me I would have to go to his Dad's house to have him sign the contract as it was still in his name.  Geeeeez.  Now I have to explain to his dad that we agreed on $2,500 for his house!  Well......the dad did not even flinch...signed quickly, without hassle. 

Quickly sold to a landlord (fully disclosing the demo hearing with the city).   



So, what?   It doesn't mean anything if you don't say how much you sold it for, what the ARV is, or what houses on the street were selling for.  It doesn't seem like there was a lesson learned here.  For all we know, you sold it for less than you bought it for, which is pretty dumb and nothing to be proud of.  Here's a guy who bought an el dumpo house in Detroit for $1 and I think it's going to be a white elephant he'll end up giving back to the city and wasting a lot of time and money on. 

http://www.therealestatebloggers.com/2008/08/13/buy-a-house-for-only-1-dollar-only-in-detroit-baby/
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Offline Danny(TX)

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Re: Cheapest House Bought (Total Price)
« Reply #2 on: February 19, 2010, 07:46:06 am »
I'm sorry you didn't learn anything from the post.  I apologize for having you read it. :rolleyes

Just thought some people would like to hear about some of the cheapest houses each of us have bought and the stories behind them.  Obviously I did as I posted to find out. 

Houses in the area sell for $60k-$85k.  I sold the house right away for $6,500.  The landlord that bought it had his money back within about a year.

Have a wonderful day.   :beer

Danny Johnson
San Antonio, TX
http://www.dannybuyshouses.com

Offline Bluemoon06

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Re: Cheapest House Bought (Total Price)
« Reply #3 on: February 19, 2010, 11:32:54 am »
That is a good post Danny.  We can be sort of terse here.  That story reminds us that we must stay vigilant and deals of a lifetime do come up.

davewindsor sounds jealous to me.
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Offline davewindsor

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Re: Cheapest House Bought (Total Price)
« Reply #4 on: February 19, 2010, 12:22:54 pm »
That is a good post Danny.  We can be sort of terse here.  That story reminds us that we must stay vigilant and deals of a lifetime do come up.

davewindsor sounds jealous to me.


Jealous?  Ha, that's a laugh.  I'm dealing with million dollar buildings.  We're not even in the same ballpark.
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Offline tatertot

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Re: Cheapest House Bought (Total Price)
« Reply #5 on: February 19, 2010, 01:04:25 pm »
Not cheaper than yours, but a better deal.

Paid $23,000. Sold the timber for $85,000 net, sold the logged-over and replanted  land and house for $125,000.

Offline Bluemoon06

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Re: Cheapest House Bought (Total Price)
« Reply #6 on: February 19, 2010, 01:56:53 pm »
That is a good post Danny.  We can be sort of terse here.  That story reminds us that we must stay vigilant and deals of a lifetime do come up.

davewindsor sounds jealous to me.


Jealous?  Ha, that's a laugh.  I'm dealing with million dollar buildings.  We're not even in the same ballpark.

Bigger is not better, better is better.
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Offline Danny(TX)

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Re: Cheapest House Bought (Total Price)
« Reply #7 on: February 19, 2010, 02:07:43 pm »
That's a really nice deal tatertot!

This thread was not meant to be a bragging post.  Simply a matter of curiosity.  I was not trying to be the one with the best ever deal or the cheapest ever deal.  Just wanted to share the story and appreciate the others that share their stories.  I understand that they are not bragging. 

Not trying to start an argument here.  Just wanted to say thanks to the people that are willing to share and discuss.  That is what we are here for isn't it? 

This was not my best deal, just my cheapest, hence the POST TITLE.     :biggrin

Thanks for the comments Bluemoon and for sharing tatertot. :bigthumbup

Danny Johnson
San Antonio, TX
http://www.dannybuyshouses.com

Offline justin0419

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Re: Cheapest House Bought (Total Price)
« Reply #8 on: February 19, 2010, 05:45:14 pm »
Cheapest one so far has been $9100 purchase price.  About $15k total in the property after rehab.  Successfully rented for $490/mo over the past year.  ARV is probably 30k even in the bad current market.
Might have another one even better soon.  Just bought it for $10k.  Needs maybe 2k or so of work.  Already approved an applicant to rent it at $500/mo.

Not homeruns, but solid cash flowing deals.
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Offline Danny(TX)

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Re: Cheapest House Bought (Total Price)
« Reply #9 on: February 19, 2010, 05:50:59 pm »
Those are great deals.  Especially that second one, only needing 2k in work.  Nice. Thanks.
Danny Johnson
San Antonio, TX
http://www.dannybuyshouses.com

Offline davewindsor

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Re: Cheapest House Bought (Total Price)
« Reply #10 on: February 20, 2010, 05:35:37 am »
The cheapest for me would have been $30K an apartment and cleaning them up and fixing up the financials to get them up to $40-$45K reappraised in a year or two.  What I spend per apartment varies.  After the first apartment building, it's fairly easy to find no money down apartment buildings in decent areas that I can reappraise down the road.   

The cheapest building I've ever bought was $135K.  I don't even get involved in buying another building unless I can see it increasing my net worth by at least $150K within two years.  I love apartment buildings.  Commercial building materials are to a much higher standard so you don't have to maintain them as often as houses, you can get better tenants and they are easier to manage, and there are many ways to raise the financials, and if I'm selling them in a year or two, I'm paying half the tax (through capital gains instead of income tax) and I'm making as much if not more than a house flipper who's really busting his ass and hustling with more expensive repairs and carrying costs

Ten years ago, a former client of mine got into real estate, sold his expensive house, and started rehabbing and flipping $25K houses in Chatham.  He had a lot fun dealing with all the city inspectors one they saw his name on title. 

Forward to a few years ago.  He was telling me he moved outside of Kingsville and found even cheaper bulk reos.  He was breaking up packages of buildings and mobile homes, fixing them up and renting them out and selling them individually.  A couple months ago, I got a phone call about his funeral date--he died of a failed cancer operation.  I wonder if the stress of dealing with the kind of tenants who'd live in these cheap homes and the carrying costs of holding properties he's not collecting rent on did him in.  I personally don't think that cheap houses are better.  But, each to their own I guess.
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Offline jmd_forest

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Re: Cheapest House Bought (Total Price)
« Reply #11 on: February 20, 2010, 07:36:51 am »
Best deal I've bought so far is $80K for a 3BR/1.5 BA ranch in a nice suburban neighborhood. It needed about $20K in repairs and rehab is nearly complete (another 3 weeks or so until finished for a total of 5 months full time rehab) ARV is about $220K. I expect to rent it for $1600/month.

It doesn't sound like much compared to some of the deals on this thread, but it was a really good deal for this area.

jmd_forest

Offline Summit

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Re: Cheapest House Bought (Total Price)
« Reply #12 on: February 20, 2010, 12:06:35 pm »
Bought 3 lofts for what the owner paid for them new in 1972 so that he didn't have to will them to his kids that had not come to see him in over 17 years.

Bought biggest one for $146,000 Appraised at $987,000 Rents for $4,200

Second I got for $77,000 Appraised at $688,000 Rents for $2,900

Third I got for $33,000.00 Appraised at $296,000 and rents for $1,300

This was about 5 years ago I still have them there now almost free and clear. HOA Fees are a little high yet I won't complain.
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Offline dwoolleyjackson

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Re: Cheapest House Bought (Total Price)
« Reply #13 on: February 20, 2010, 01:16:47 pm »
You guys have found some really great deals. Not the best on the thread but here is mine:

2/1 single family - 19k purchase, 7,500 repairs. Currents rent $670 mo.

Offline justin0419

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Re: Cheapest House Bought (Total Price)
« Reply #14 on: February 21, 2010, 12:29:34 am »
jmd_forest,
Wish I could find a deal like yours here.  I can find cash flowing rentals all day long, but ones where you can do a moderate amount of improvements and make that much of a difference in the value of the house don't seem to be in my area.
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