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exnzpat buys a rental!

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  • exnzpat buys a rental!

    While all this scintillating Property Talk (pun intended) has been going on I have been looking at foreclosed properties here in the States. Just two weeks ago I finally purchased a property. 30 year fixed at 5.5% (Conventional Loan) not as good as I had hoped but I got such an incredible deal on the home. Almost 80% below market value and at least 20% less than other similar foreclosed homes! I couldn’t believe my luck! Even the seasoned investors in the area missed this one. The house is in another town from the one I currently live in (about one hundred miles away). Many years ago I lived in this town as a newly-wed so I know the area pretty well.

    The home was constructed in the seventies – 3 bedroom, 2 bathroom, brick; Ranch style. About 1800 square feet – only needs some simple cosmetic work. The most expensive part will be the kitchen: new cabinets, appliances etc. The house may need a new roof – but I’ll look at that in more detail when I get there. I can probably do all the work for under $6000 (excluding the roof). I’ll do most of the work myself over the next two weeks (I have vacation).

    This is a great little project that I have decided to share with you. Over the next 14 days I’ll be working on this thing so I thought it would be nice to give you a blow-by-blow account of the “action” so to speak.

    Even though the market is down you can still make money from real estate!

    So, here the numbers:

    Purchase Price: $45,000

    Monthly Mortgage: $255.51

    Monthly Insurance and Tax: $160.00

    Current Market Value: $170,000 (or thereabouts)

    Now, this house is an exception. Normally, I would do a quick rehab and have it on the market the moment I got it into “showable” condition. But, because the market has taken such a dive I believe that this area will not even begin modest value-regain for at least five years. So, as much as I hate to do it – I’m going to have to get renters in for the next few years until things begin moving again. And with the price I purchased this place for – I can’t lose. But then this is real estate investing – anything can happen – and probably will!

    Last edited by exnzpat; 15-06-2009, 03:48 PM.
    Erewhon is still erehwon, I don’t see it changing anytime soon.


  • #2
    Well done, I wondered why you were on this site when you seemed to hate everything property with a passion.

    I have been watching the "Flip this House" series on TV last month, the americans certainly have there own way of doing things


    • #3
      Congrats NZExpat - that sure is a bargain.

      I love 'Flip this House'... I have a little crush on Richard..

      I was so disappointed when the second series didn't include the Trademark team - I believe Richard Davis is suing the Network...
      Last edited by rueben; 15-06-2009, 04:04 PM.


      • #4
        Flip this House is all BS isn't it? Hasn't that been proven before?

        Anyway, good buying Exnzpat. Post a photo so we can see what you're talking about.
        Squadly dinky do!


        • #5
          Originally posted by rueben View Post
          I love 'Flip this House'... I have a little crush on Richard..
          I hope for all our sake's you a woman Rueban

          But they have different people on it, the rude grumpy texan guy Armando is funny...

          But there is also a black couple and the "Lady" is kinda hot


          • #6
            Davo - the first series wasn't - with Richard Davis - but the second series with the other turkeys was/is rubbish - it was proven that one of the purchasers was a mate of the Armando's and just went through the motions of buying/showing the profit when in fact he hadn't.

            Richard Davis has a new series called "The Real Estate Pros" which I'm am gonna try and find on Youtube.


            • #7
              Nice one expat.
              What will it rent for and are there other state taxes etc. to pay?


              • #8
                I think ExNZPat is having us on... there are far too many cliches in his/her post....I smell a rat...


                • #9
                  The numbers sound right based on what I see on the net in the USA.
                  A lot of stuff is selling 20 to 40 cents on the dollar.


                  • #10
                    Originally posted by Bluekiwi View Post
                    I hope for all our sake's you a woman Rueban
                    Why? .......
                    Jo Birch
                    Looking for someone to manage your next project or event? Then call now!
                    +61 450 148 678


                    • #11
                      Speaking from total ignorance here, how come foreclosed places are selling so far below market value? How are they determining market value?

                      Sure sounds like a great deal - good one!


                      • #12
                        Originally posted by exnzpat View Post
                        foreclosed properties
                        constructed in the seventies
                        Ranch style
                        1800 square feet
                        I have vacation
                        quick rehab
                        I’m going to have to get renters in
                        You're no expat, you're are full flown convert!
                        Premium Villa Holidays in Turkey


                        • #13
                          March alone posted record highs in foreclosure activity, with 341,180 properties receiving foreclosure filings,


                          • #14
                            yep expat is up to something.

                            What would expat say to any of us if we said we had bought a property for $45,000 but the market value was $170,000?

                            No deposit Expat?


                            • #15
                              Well done, expat.
                              Signing up with RM,PJ for a bit of coaching was an excellent move.
                              You'll be driving a red Ferrari in no time (leased of course).