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 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 a 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 keep breaking down in this property. 1st is the AC, The the Water heater, then the Garage controller, bath tub, 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.