Author Topic: Bought another house  (Read 8219 times)

kathrynd

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Bought another house
« on: March 12, 2016, 03:15:48 PM »
Close next week on another rental property.
Its a 1941 storey and a half.
3 bedrooms, one bathroom...a garage and a shed on a 1/4 acre lot, in a small town.
Asking price was $19,900...yes that is right.
We offered $15,000...and it was accepted.

What is wrong with the property?
Nothing...not a damn thing.
We will spend about $3-5k because we are going to change the heating system.

Why didn't someone who  actually lives in the area buy it?
Oh well...still more in the same town to buy....
maybe another  day :)

With This Herring

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Re: Bought another house
« Reply #1 on: March 12, 2016, 03:56:42 PM »
Congratulations!

Did you ask the neighbors if they know why it was priced so low?  That is really bizarre.  It would make me think drug/murder house.

Tjat

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Re: Bought another house
« Reply #2 on: March 12, 2016, 04:18:00 PM »
Or in Flint Michigan


awesome grab. Any idea what rent you can charge?
« Last Edit: March 12, 2016, 04:33:16 PM by Tjat »

Another Reader

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Re: Bought another house
« Reply #3 on: March 12, 2016, 04:30:13 PM »
OP is Canadian and previously mentioned the Maritimes as having inexpensive real estate.  With the exchange rate, now might be a good time for US residents to consider buying rentals up there.

expatartist

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Re: Bought another house
« Reply #4 on: March 12, 2016, 04:41:41 PM »
Congrats OP!

Another Reader, thanks for providing context for the OP's purchase.

kathrynd

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Re: Bought another house
« Reply #5 on: March 12, 2016, 04:57:32 PM »
OP is Canadian and previously mentioned the Maritimes as having inexpensive real estate.  With the exchange rate, now might be a good time for US residents to consider buying rentals up there.

You are correct, and there are plenty of houses  at this price in the Maritimes :)
People on minimum wage could easily afford it....one problem is, they would rather be on welfare, and thus, would not qualify

Of course we also have the 1 Mil properties, as well :)
« Last Edit: March 12, 2016, 04:59:57 PM by kathrynd »

Another Reader

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Re: Bought another house
« Reply #6 on: March 12, 2016, 05:14:55 PM »
Those same people form your tenant pool.  Probably makes it challenging to find high quality tenants.  Not sure if your provincial laws favor landlords or tenants.  No way would I be a landlord in Quebec.

randymarsh

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Re: Bought another house
« Reply #7 on: March 12, 2016, 06:19:49 PM »
It would make me think drug/murder house.

That's how you score the best deals!

bobechs

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Re: Bought another house
« Reply #8 on: March 12, 2016, 09:10:19 PM »
No need to go all that way for cheap houses.  Lots of similar all up and down the high plains.

Regardless of the quality of the tenants, achievable rents are reflective of the oversupply of cheap habitations.  One, two, three hundred a month and plenty of vacant months too.

kathrynd

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Re: Bought another house
« Reply #9 on: March 13, 2016, 08:59:32 AM »
No need to go all that way for cheap houses.  Lots of similar all up and down the high plains.

Regardless of the quality of the tenants, achievable rents are reflective of the oversupply of cheap habitations.  One, two, three hundred a month and plenty of vacant months too.

We have been landlords for 12 years...so we have seen lots, over the years.
Here, it is always cheaper to be a home owner than a renter....

We will easily get $700-$800 a month rent for this house.

FrugalFan

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Re: Bought another house
« Reply #10 on: March 13, 2016, 11:05:40 AM »
You've got me curious! We own a rental in our current location but I am originally from the east coast. I'm curious about where you are buying and renting if you don't mind sharing?

startbyservingothers

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Re: Bought another house
« Reply #11 on: March 13, 2016, 01:45:26 PM »
Do you do everything yourself or use an agent for buying and/or property manager for renting the house?

I'd like to do rentals, but it's a little expensive to get into in my area.

kathrynd

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Re: Bought another house
« Reply #12 on: March 13, 2016, 05:35:03 PM »
You've got me curious! We own a rental in our current location but I am originally from the east coast. I'm curious about where you are buying and renting if you don't mind sharing?

One of the Maritime provinces :)

kathrynd

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Re: Bought another house
« Reply #13 on: March 13, 2016, 05:36:30 PM »
Do you do everything yourself or use an agent for buying and/or property manager for renting the house?

I'd like to do rentals, but it's a little expensive to get into in my area.

We do everything ourselves.
No one else will ever look after your interests.

Murdoch

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Re: Bought another house
« Reply #14 on: March 14, 2016, 03:10:14 AM »
Great work Kathrynd.
Sounds like a great little earner.

mm1970

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Re: Bought another house
« Reply #15 on: March 14, 2016, 04:11:43 PM »
okay, I had to use Google to figure out "The Maritimes".  Now I know!

bobechs

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Re: Bought another house
« Reply #16 on: March 14, 2016, 04:24:26 PM »
okay, I had to use Google to figure out "The Maritimes".  Now I know!


Just watch any season of Trailer Park Boys if you want to know more.

2Birds1Stone

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Re: Bought another house
« Reply #17 on: March 14, 2016, 06:54:57 PM »
okay, I had to use Google to figure out "The Maritimes".  Now I know!


Just watch any season of Trailer Park Boys if you want to know more.

LOVE that show haha! I wonder if this house has a "smokable" driveway ;)

kathrynd

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Re: Bought another house
« Reply #18 on: March 14, 2016, 08:03:54 PM »
okay, I had to use Google to figure out "The Maritimes".  Now I know!


Just watch any season of Trailer Park Boys if you want to know more.

over the years...some of the cast and crew have been our tenants..

MrSal

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Re: Bought another house
« Reply #19 on: March 15, 2016, 05:52:20 PM »
Close next week on another rental property.
Its a 1941 storey and a half.
3 bedrooms, one bathroom...a garage and a shed on a 1/4 acre lot, in a small town.
Asking price was $19,900...yes that is right.
We offered $15,000...and it was accepted.

What is wrong with the property?
Nothing...not a damn thing.
We will spend about $3-5k because we are going to change the heating system.

Why didn't someone who  actually lives in the area buy it?
Oh well...still more in the same town to buy....
maybe another  day :)

huh?!? how is that price??? and where do u buy it from? curious to know... that is ridiculously cheap!!

kathrynd

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Re: Bought another house
« Reply #20 on: March 16, 2016, 08:40:10 AM »
Close next week on another rental property.
Its a 1941 storey and a half.
3 bedrooms, one bathroom...a garage and a shed on a 1/4 acre lot, in a small town.
Asking price was $19,900...yes that is right.
We offered $15,000...and it was accepted.

What is wrong with the property?
Nothing...not a damn thing.
We will spend about $3-5k because we are going to change the heating system.

Why didn't someone who  actually lives in the area buy it?
Oh well...still more in the same town to buy....
maybe another  day :)

huh?!? how is that price??? and where do u buy it from? curious to know... that is ridiculously cheap!!

real estate multiple listing sites aka MLS
available to everyone...these are not secret

Mr.Tako

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Re: Bought another house
« Reply #21 on: March 16, 2016, 09:49:51 AM »
Wow, that's crazy cheap.  We haven't seen prices like that out west since the 1970's. 

You'd easily pay 10-20x that amount for a house out here.

kathrynd

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Re: Bought another house
« Reply #22 on: March 16, 2016, 04:48:44 PM »
Wow, that's crazy cheap.  We haven't seen prices like that out west since the 1970's. 

You'd easily pay 10-20x that amount for a house out here.

all the houses aren't this cheap, but there always seems to be some...everywhere

webguy

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Re: Bought another house
« Reply #23 on: March 17, 2016, 08:09:17 AM »
We have been landlords for 12 years...so we have seen lots, over the years.
Here, it is always cheaper to be a home owner than a renter....

We will easily get $700-$800 a month rent for this house.

That seems too good to be true. It seems pretty crazy that someone would pay $800/month to live in a house they could purchase for $15,000. After just 18 months they could have paid it off in full and live rent free, or they could get 15-30 year mortgage for $100 a month. Who has $800/month to spend on rent in what sounds like a low cost of living area but isn't bright enough to realize this?

kathrynd

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Re: Bought another house
« Reply #24 on: March 17, 2016, 02:47:55 PM »
We have been landlords for 12 years...so we have seen lots, over the years.
Here, it is always cheaper to be a home owner than a renter....

We will easily get $700-$800 a month rent for this house.

That seems too good to be true. It seems pretty crazy that someone would pay $800/month to live in a house they could purchase for $15,000. After just 18 months they could have paid it off in full and live rent free, or they could get 15-30 year mortgage for $100 a month. Who has $800/month to spend on rent in what sounds like a low cost of living area but isn't bright enough to realize this?

5 1/2 yrs ago, we bought a piece of land, which had an 1970's mobile home on it.
The sellers wanted to get rid of it.
We paid the sellers $1000 a month for 20 months.
in turn
we rented it out for $750 a month...tenant has been there for all this time.

Why?
because he can't get a loan to buy it himself.
Should mention, for this property, we are offering it as a Rent to Own.
He rents it for 10 yrs at $750 month, and does ALL repairs and maintenance.
Should he stops paying rent, he moves, and we have an improved property...and he has not gained any equity.

After 10 years, we sell the mobile to him for $1.00 (one dollar)

we made $90 K in rent, less $20K purchase price...profit $70K
We are pleased :)
« Last Edit: March 17, 2016, 02:52:16 PM by kathrynd »

Gerard

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Re: Bought another house
« Reply #25 on: March 18, 2016, 09:27:13 AM »
That seems too good to be true. It seems pretty crazy that someone would pay $800/month to live in a house they could purchase for $15,000. After just 18 months they could have paid it off in full and live rent free, or they could get 15-30 year mortgage for $100 a month. Who has $800/month to spend on rent in what sounds like a low cost of living area but isn't bright enough to realize this?

It's *very* hard to get a (first) mortgage for under $50K in Canada, at least in my experience. And Atlantic Canada, in particular, has an ossified connections-based culture/economy in which low-income people have been ruthlessly ripped off for years. When I first moved here, I was renting a fairly crappy 2BR apartment for about $700... after a year, I bought a 3BR house, with a yard, in a better neighbourhood, that carried at about $500.

So yeah, it sounds crazy, but around here it's entirely possible!

webguy

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Re: Bought another house
« Reply #26 on: March 18, 2016, 10:36:21 PM »
We have been landlords for 12 years...so we have seen lots, over the years.
Here, it is always cheaper to be a home owner than a renter....

We will easily get $700-$800 a month rent for this house.

That seems too good to be true. It seems pretty crazy that someone would pay $800/month to live in a house they could purchase for $15,000. After just 18 months they could have paid it off in full and live rent free, or they could get 15-30 year mortgage for $100 a month. Who has $800/month to spend on rent in what sounds like a low cost of living area but isn't bright enough to realize this?

5 1/2 yrs ago, we bought a piece of land, which had an 1970's mobile home on it.
The sellers wanted to get rid of it.
We paid the sellers $1000 a month for 20 months.
in turn
we rented it out for $750 a month...tenant has been there for all this time.

Why?
because he can't get a loan to buy it himself.
Should mention, for this property, we are offering it as a Rent to Own.
He rents it for 10 yrs at $750 month, and does ALL repairs and maintenance.
Should he stops paying rent, he moves, and we have an improved property...and he has not gained any equity.

After 10 years, we sell the mobile to him for $1.00 (one dollar)

we made $90 K in rent, less $20K purchase price...profit $70K
We are pleased :)

Wow, that's incredible! Are there a lot of those kind of deals up there?

kathrynd

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Re: Bought another house
« Reply #27 on: March 23, 2016, 08:06:07 AM »
That seems too good to be true. It seems pretty crazy that someone would pay $800/month to live in a house they could purchase for $15,000. After just 18 months they could have paid it off in full and live rent free, or they could get 15-30 year mortgage for $100 a month. Who has $800/month to spend on rent in what sounds like a low cost of living area but isn't bright enough to realize this?

It's *very* hard to get a (first) mortgage for under $50K in Canada, at least in my experience. And Atlantic Canada, in particular, has an ossified connections-based culture/economy in which low-income people have been ruthlessly ripped off for years. When I first moved here, I was renting a fairly crappy 2BR apartment for about $700... after a year, I bought a 3BR house, with a yard, in a better neighbourhood, that carried at about $500.

So yeah, it sounds crazy, but around here it's entirely possible!

You're right,it is difficult to get a mortgage for under $50k.
A few years back, we put an offer in on a house, thinking we had gotten a great deal...only to find it was too low to get a mortgage.
We ended going back and offering more for the house, and asked for the difference to be in a form of a new fridge, stove, etc.

Now, we either pay cash, or borrow against a credit card...whatever to get the deal done.