My husband and I brought a house from an invester in philly about 3 years ago. We paid $15,000 for the property. We fixed it up for about $7,000. We rented it out immediately to a tenant for $750.00 a month. We took out $23,000 from the bank on this property. The tenent was a cash tenent (although we were advised to put a section 8 tenent in there because this house has 5 bedrooms and can collect $1500monthly from the government)however, the tenent only made a few rent payments. We had to evict her for non-payment. My husband and I don’t talk about the property much because the tenent thing was a nightmare. When I can find the nerve to address this issue with my husband, I say fix it back up put in new section 8 tenants and enjoy the cash flow. He say’s "Where are we going to get the money to fix the dam property? Our credit isn’t all of that great! He has a good point, our credit isn’t good, although we do make good income. He quickly says I just want to sell the dam place. I say, How are you going to sell it if you don’t have the money to sell it if you don’t have the cash to fix it up? He says, “good point” so the property continues to sit while the neighbors watch it and we pay $230 a month for the mortgage. Please, any suggestions? (also the comps in the area are about $50,000 last I checked). Can I be a new invester breaking into this field with this property. If so, what might be a good way to start with this property, so I can show your opinions to my husband. Thank you in advance.
Sell it as is at a discount and move on with your life, it seems to me you aren’t cut out for landlording since you can’t even talk about it with your husband. If you can sell it for $40k (more than you paid and still below market to move it fast that’s you best bet.
the property is in phila…where are you? also you should be open to owner financing.
I’m pretty close to philly. I still need to fix it up with no credit. Owner financing that’s a thought. However, I still have to fix it up since the last tenant destroyed it. I’m not afraid to talk to my husband, not at all he is a loving man. My venture (with him by my side) annoyed him because I sent him to collect the rent. It left a sour taste in his mouth. However, landlord isn’t for us. However, do you think we should put it in the paper to attract investors?
Fixer upper, must sell. $35k.
Call xxx-xxx-xxxx
Tiredtm,
Your experience is the way that most new landlords end their career. However, unlike most new landlords, YOU MADE AN EXCELLENT PURCHASE from a money standpoint. You should easily be able to sell the property to another investor and make a profit. I would suggest going to your local REIA (real estate investors association). Find out who the SUCCESSFUL landlords are and offer it to them - AS-IS. If the Section 8 rents really are $1,500, then you should easily be able to get $75,000 less repairs needed. So, if it needs $25K in repairs, you should be able to get about $50K for it. This will be a good deal for whoever buys it!
Good Luck,
Mike
El Dumpo. You fix.
$35,000.00
555-555-1212
Thanks guys truly. All of your answers were extremly helpful. Oh, my husband thanks you guys also! He is back motivated!