Need some help with real estate, who is edumacated?

[Nexus1155]

Ok, sooo I am broke and honestly can't think of what i want to do with my future and i need something to atleast have a secure foundation on. I have a 710 as a credit score, and even bums less fortunate than me can afford a damn house... but im just looking at this as an investment property.

The house
$200,000

3 Family, 9 rooms, 2 bathrooms(makes no sense! guess the 3rd floor doesn't have to poop)

The house is in a crap area, but is down a dead end side street which no one goes down... Mortgage is roughly $1100 per month.

I want to charge $1000+ per rent depending on the area its in(need to research) so that leaves me with an extra 1500+ a month profit.

With the area that it is in i might have to hassle to get paid for the rent. Does anyone know how i can turn it into a Section 8 Housing unit so i get paid by the government instead. Or if anyone just has any general ideas

Thanks Everyone!!!

[firemachine69]

You won't get the mortgage. End of discussion.

Unless you forgot to tell us about the 40K you have sitting in your bank account...

[Nexus1155]

with a cosigner?

[Bob_VT]

30 Year mortgage @ 5,5% w/no money down is $1135/month

Add in taxes, utilities, repairs, insurance ........... you need to keep 2 units rented at $900/month just to break even and it would be close. You will probably have to live in the 3rd unit to make it work. If you live in the 3rd unit and keep it working for a few years then you can move out and move on.

Keep this in mind..... what is the cost of a furnace or boiler..... roof replacement ..... these are things that will bite you in the ass. If you can not get a renter @ 900 would you settle for 650? When the renter gets laid off or fired..... and can't pay the rent.

Being a landlord can be both risky and rewarding..... do a bit more research. If it is a legal aptartment house you are entitled as the buyer to know it's rental history. You would want to get a professional inspection too.

[firemachine69]

Originally Posted by Nexus1155

with a cosigner?

Does your co-signer have about 40% of assets sitting around? I.E. their own house paid in full, stock options, bonds, etc?

[Nexus1155]

I'm 21 and still live with my parents and am planning to open a shop in the future, im just looking for some added income.

Half of my family are contractors and my dad does HVAC work, If i ever needed anything done i think i am covered at cost....

I think i might outsource the landlording to a secondary company as that seems to be the smarter thing to do nowadays.

lol firemachine do you not live in the land of dreams i do.....Boston.

[Bob_VT]

Originally Posted by Nexus1155

I'm 21 and still live with my parents and am planning to open a shop in the future, im just looking for some added income.

Half of my family are contractors and my dad does HVAC work, If i ever needed anything done i think i am covered at cost....

I think i might outsource the landlording to a secondary company as that seems to be the smarter thing to do nowadays.

lol firemachine do you not live in the land of dreams i do.....Boston.

Outsourced companies get 10-15% of the rent collected plus charge for repairs. That could be a real bad idea and cost you more than you think.

Want to buy at that young age and you will need a downpayment. Start small and just consider a single family when you budget yourself.

[Nexus1155]

ahhh, i thought it would only be so much a month and not a % wise, hmmm yeah i guess ill have to rethink that.

As of being this age, being in college, i currently own my own auto business, and am also a co-owner of a tanning salon... it's just that most of the money goes back into the businesses smartly, and not to me... So i consider it an investment into my future...

The funny thing around here, is that i might end up paying the same if not more for a single family. This one caught my eye, in a decent/crappy neighborhood, but on a dead end so its somewhat safe, i thought id atleast check it out and see if it has anything going for it...

[dvlnblkdrs]

if you want to become section8, i recommend looking at hud.gov thats the govmt housing website.. my mom works in mortgages, quality control for a mortgage company(csi, loan style.. lol) she works directly with hud as well in reviewing their loans.. im sure theres something on their site about how to become section8.. i know theres specific requirements...

[putt_putt]

You won't get the mortgage. End of discussion.

Unless you forgot to tell us about the 40K you have sitting in your bank account...

youre a fucking prick. id get that dildo out thats shoved up your ass.

[dvlnblkdrs]

putt.. he was correct.. may have said it bad, but accurate nonetheless

[jkuchta]

I too think getting a mortgage at his age with little (or nothing) down will be pretty much impossible. The cosigner might help, but you're still going to need 10-20% (minimum) cash for a down payment, around 4-6 months worth of payments sitting in a bank account (for at least the last 3-6 months), as well as enough of a credit history. No Doc loans don't exist anymore.

The credit score is good, though I'm not sure he's had enough of a credit history to qualify for a home mortgage.

He might qualify for First-Time-home-buyer loan perks through the FHA, though I'm pretty sure he will still need to live in the home to qualify.

I say give it a shot. Nothing ventured...nothing gained!

My wife and I are in the process of researching areas in which to buy our first home, and all I can say right now is that I'm glad home prices are tumbling here in So Cal! The cash-in-hand needed to buy a home is pretty daunting.

[Bob_VT]

http://www.fha.com/calculator_afford.cfm

Remember since this is a first mortgage you may be required to pay mortgage insurance too......

keep in mind in your first line you said you were broke....

[Nexus1155]

Thanks for the responces, i will check out the hud, the only reason i am opting for this location is because it is somewhere local to me and i will be able to monitor it.

with section 8 kind of gives me some backup in terms of rent from the government, even if they do get laid off...

i've heard of places giving out mortgages for some time on easy standards just to watch you fail, or based on many reasons, but you are right nothing ventured nothing gained, the key is to shop shop shop...

But yeah, even though the economy wasn't in such a scare as it was, the market is still crap in some areas....I wish you luck with your search as well!

i just tried to do the calculator, and it said i needed to make 60299 a year for a 30 year mortgage on 200k with a 4000 anual tax amount which seems a little obsurd... anyways, im not that broke, but borderline... i always have some things to back me up...which i think would allow me to get some kind of mortgage, maybe a 10/1 arm in case they thing the economy will get better then...but i will be putting more in to pay of interest on top of payments so i do not get raped bad

[dvlnblkdrs]

thank the govmt for those.. the gov told mortgage companies that 80% americans needed to be homeowners within 10 yrs and to do whatever needed to make it happen.. so came sub prime and stated/stated.... just fyi

[TLyttle]

Lots of problems there... Renters are a real crapshoot: if you are lucky enough to get a good one, consistently pays the rent, looks after the place, you would be one of the lucky few. Otherwise, you could get bit to a point where you wouldn't ever get out, and someone lives for virtually free in YOUR house.

Don't think so big; start small (like your income), and try to be in debt to no one. If you have two businesses now, and are "virtually" broke, you best check your spending habits. You have some interesting backup, but ten times nothing is still... nothing...

[Nexus1155]

http://boston.craigslist.org/rea/ anyone can be my guest lol

I've found some places that are condos, but i dont think you can rent a condo after purchasing it, it kind of defeats the purpose and i would be tempted to live in it... And yeah i see where you are coming from, most renters don't know how to manage their money and thats why they rent to begin with!

but yeah im virtually broke from when i was younger and like all people misused their..... third credit card?... first and second were still in check good, but the third one went overboard somehow, and i didnt feel like using a card to pay a card...I like stuff :(

[Nexus1155]

UPDATE:

So i went by to check out the house today, its borderline good/bad neighborhood being about a mile away(but this seemed like a safe little street). The house in the pictures was not what they advertised and can use some work, in which i will offer them a much lower value than what is expected from that unit...

I attempted to send the realtor an e-mail in hopes of a responce, but i doubt i will get one....so i will just have to call in a day or two...

Didn't get to go in, but the visual issues are... Disgraceful yard, boarded up busted windows, theres a police notice sign in a coupld of places, part of the vinyl siding is ripped off on the second floor. Pet peeve was that the fence surrounding the house that the companies own are totally mangled...if i ever do buy this property, i would need to fence the whole house in, or have them do something about their property...if i can get this place for $125K i would be content..

I live close by and was looking for an investment property, so i took a ride down to see the house. I am interested in it, but there are a couple of questions I do need to ask.

Is it a 3 unit place, or a 2 unit because there are 3 mailboxes, yet a few listings only say 2 liveable units.

Also, the house looks condemned, is it up to code on everything or did someone just bust up the windows after the fact and labeled it as such?

And just wondering if any offers have been made so far. I would be interested to see the house sometime in the daytime. Being of the young age that I am, I even don't want to be hanging around there at night time.

Thanks for taking the time to read this message, and could you please include any more information you have about the house in terms of HVAC/Plumbing/Electrical,lead,asbestos etc.

Sincerely
Nicholas Goyuk