Man! I want to go back and edit this post so bad. My writing is so funny couple years ago but I decided to leave the old post below unedited. I actually enjoy reading and get a crack out of it.
This property is appraised at $135,000. My sister wants to cash out her investment. Instead of selling it and get taxed. I decided to refinance it out since the rate is still super low this year. After everything said and done. I ended up making a win-win deal with her. getting the fund out to cash out my sister and took over this property. With the PITI at around $900 and rental income at $1300. This thing is sitting pretty on cashflow.
Here are some updated pictures: This is now another #infinitereturn deal.
And you guys know me, of course, I did some upgrade to the property. over the year This is how you get a good tenant and keep them. The House is not your asset, your tenant is your asset, treat them kindly, treat them well, be a good landlord.
Ok I admitted. I totally messed up on the order. I have no idea when i bought this house. All i remember was after I purchased my primary resident.
This one was actually an interesting and quite a story to tell. I have two older sisters. One of them has money from her business in Vietnam. and I have been buying house with one them left and right. The other one had no cash to purchase. I reminded myself that investing is a team sport and if i get rich, the people i love will also have to get rich with me. I told my other sister to give me the down payment and I will just simply go out there, do all the hard work, even get a loan under my name for me. That’s what i did
I found this house for her on http://www.homepath.com. I got emotional during the bidding and bid way over priced for this property. The property asked for only 60k something i bid the sucker up all the way to 90k something. Guess what? The house of course didn’t appraised at 90k :). it appraised at 76k….
SURPRISINGLY! The bank accepted my counter offer of 76k. we went through a little bit more drama during escrow but the deal finally closed.
Renovation Cost: $2000
Financing: 20% down using a conventional mortgage
What is happening to this property?
2013 update: I hired a property manager for this house and it turned out to be a disaster. They put in the wrong type of tenants into the house. the tenants always late on rent and the property manager is not the best person in the world to deal with. I ended up fired them and took over the management. i dealt with the tenants for a year until they decided to pack up and leave un notice and leave a mess behind.
2014 update: We have to repaint the house and clean up after the tenants move out. I have my newly hire property manager took over and thing seem to be fine so far. The house is currently leased for $1200
2015 update: For whatever reason, thing keeps breaking down in this property. 1st is the AC, The the Water heater, then the Garage controller, bathtub, etc… I spent what needed to be spent to keep the property in tip-top shape and keep my tenants happy. I even gave her a free stainless steel dishwasher upgrade I bought during Black Friday shopping. The property now appraised for $110,000
What do i get in return for helping?
I actually never asked that question. I charged my sister a super small amount of fee every month to oversee the operation and that’s about it . All the money go to her account.
I want to put this question out here because i encountered with a lot of people and unfortunately this is the 1st question they asked before everything else.
Folks, I trust that if you help someone and with the mindset of getting some sort of return or benefit out of it. I don’t think you will survive in this business very long. I help my sister simply because she is my sister and I want her to get rich with me.