First off, I love forums. This one is my new favorite. Thank you all for the great insight I have snatched from your replies.
Here is where I was:
27 years old. Car nut, pumping all cash into my hobby, good with my hands and little to no debt, a small salaried position and the realization that unless I made a change soon, I would be poor forever. Great credit just not a ton.
Here’s what I did:
Cleared out all debt. Sold off car assets. Saved $ like crazy. Simplified my life. Cut costs. My lifestyle cost me about $500 per month. That’s it. That’s with rent.
I had some Retail Brokerage experience and had always loved the idea of real estate as a life catalyst. I began buying audio books on the topics and listening to free podcasts and voraciously hunting down informational sources online and locally. Got an IPHONE. Best choice ever for productivity. Plus it was free.
Hunted my area. Walking with the dog, looking at property searching them all on the IPHONE is a great way to kill 3 birds with one stone.
I found a foreclosure less than 2 blocks from where I live that has been with the bank for over 6 months now and had one old offer rejected months ago. Details:
City appraisal = $69k
NOW asking = $34k
Rejected offer of $24k when property was at $42k months ago
Decent area, next to a bar, by public transport and major thoroughfares. Adjacent houses appraised at $80k-$150
I am working out family financing with an out of state aunt and uncle who are willing to put up the CASH offer offer to prove funds to tie up the property. I was going to offer $25,500 or 75% of asking price. Inspection is next.
Any initial thoughts? recommendations? You should do this/that? Don’t do this? Anything really. I’m just trying to flush out all the potentials on my first foreclosure, hell, first home.
I would live there for roughly 1-5 years then rent it once paid off and in good shape. My full rent is $700 and this should fetch $600 per month.
If after the inspection, it is sound enough to rent right away, I would potentially do that.
My ultimate goal is to rent and hold with occasional sales.