I made an offer on that house today. They took the house off the market because they rented it out to a tenant, but the realtor said they would be willing to take serious offers. So I made a serious offer, I would have loved to started lower, but I submit an offer for $86,000. Only $3,000 lower than the asking price, but I think its worth it. I’ll tell you why..
I went and talked to my mortgage person today. We went through all the numbers. Here they are, worst case..
Sold - $89,000
20% down = $18000
7.5% interest only mortgage monthly = $575 (this is with insurance and tax)
He said that this are is still at about 5-6% return. That means I make $4,500 a year off my investment of $18,000. That’s pretty good.
The reason I’m interested in this house is because of the great neighborhood and condition of the house is in. The current seller came in and remodeled the house. It has wood floors, new paint, new siding, great yard, and 2 living rooms. I think this is a great investment. But we will see how it goes 
Ok, i’m going to bed, I only got 3 1/2 hours of sleep last night. Night night..
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Ok, hopefully it goes well
sounds like you can’t go wrong, good luck on the purchase
Hey Jon love the blog. Good luck on the investment, but I am a real estate investor and the numbers don’t work. You are only making 5-6% return. If you plan to rent the place you will probably end up loosing money. Their are a lot of cost involved in renting, trust me;). Damage, heater goes out, renters that don’t pay, renter turnover, eviction costs and more. Just a little advice from someone who made all the mistakes.
They didnt take the offer, they said they arnt selling it anymore, I knew it was too good of a deal
5-6% is worst case, stuff is still going up around here. What do you invest in?
just keep on looking you will find one, maybe even a better deal.
mostly homes, my wife is a realtor and when we find a good deal we jump on it. I try not to rent, because in Albuquerque the cost of the homes are so high for the rent to cover costs.
Too bad that you didn’t get it
I’m sure you’ll find a property
I just looked at the traffic stats on Compete for some of your sites like LoserAlliance. It looks like your website traffic is taking a nosedive and crashing while you’ve been spending a lot of time on real estate. Don’t know how true those stats are, but it’s just what I see.
Marc - I know that my websites traffic is slowing down haha. But remember I do stuff other than content sites
The reason that the traffic has been slowing down is because I dont really work on them much anymore, I spend my time doing the other stuff
That’s fine Jon. I just figured that making cash on the web would be a lot easier for you since you have already proved that you know how to make big bucks that way.
Good gosh. Where do you live? That is the cheapest house I have heard of. On the west coast for $86,000 you might be able to find a broken down 1 bedroom shack with an outhouse.
Don’t worry Jon, you’ll have your Mormon room really soon, I’m sure it’ll work out in the end.
86,000 sounds so incredibly cheap for a house! Anywhere within commuting distance of Dublin city means house prices of over €300,000!
So, you are going to be renting this place to someone? or turning it around and selling it? B/c if you are renting, this is pretty good ROI from what I can see. In the long run, you will be making the money back plus more.
Dude, where are you buying?!?! I’m selling a project right now at $750(CAN) per square foot! My cheapest units start at 600,000….. I can’t believe people can still get ahome nowadays for 86,000 US cash or not…
Let us know if they take the offer!
Hope you get your first investment property!