You should ask your lender about an assumable loan. This means that if you sell your house in the future, you can pass the loan to a qualified buyer. Typically, FHA loans are assumable.
The market conditions are great to buy a house right now. Interest rates have risen a little, but can still rise a lot more. If you have an assumable loan, you have the option to offer a qualified buyer today’s market conditions by giving them your low-rate mortgage along with your house.
An assumable loan can make your home easier to sell with more buyers and at a higher price in the future.
As I branch out into other sectors of the real estate industry, I first want to take an honest look at my first major investment.
The following P&L is for 1Q 2017. See the adjustments below that convert the Net Income to a realistic monthly cash flow. It shows my vision for the property, and hence my enthusiasm since I purchased. I can finally show it on a P&L.
1st Quarter 2017 Actual
Adjustments to Net Income:
+$2500: taxes. This Q’erly P&L includes an entire half year payment.
-$1500: principle payments are not cash flow, just equity.
-$1000: one quarter of insurance paid at once in July. -$525: 27 rent payments instead of the 28 shown.
= -$525: total adjustments to Net Income.
= $3,945 of actual realistic cash flow for the quarter.
= $1,315 of cash flow per month.
With $102,280 of total cash invested, that is a ~12.8% annual return. That is not a “home run,” that is a “single.”
So why am I happy with this “single”? In the sense that I want to do better in the future, I am not happy with it, but here are some mitigating factors:
I have been absent for much of the ownership of the property, and have solved many of the problems with cash, not with my own time. It has truly been passive.
I learned to hire a good manager. Much of that $102,280 cash is bumbling around with poor management. I have learned from my professional manager, Panzera Realty, about landlording and management since hiring them in Nov 2015.
The property continues to improve. The condition is better every year
We continue to cut expenses and raise rents with the market. This year we will sub-meter the water, and new units will rent without wall air conditioning units included. Even with these changes combined, we expect the same rent from the new tenants.
My original goal was to learn.
9% matches the market.
We are well positioned for an economic downturn with a quality property at reasonable rental rates.
Columbus, Ohio Occupation
Real Estate Agent
I love it so far. It puts you on the inside. A must for full-time real estate career. New website! …
Fun. More than pays for gas, but a waste of time. I drive a couple times a month still. I hope I always do. I do enjoy it.
Handyman
I will probably always do some handyman work. I enjoy it.
Kineomen
The holding company in North Carolina is positioning to invest in some sector of the real estate industry. Probably non-performing mortgage loans (NPLs).
We have a shareholder meeting at the end of this month. There is investment opportunity currently. Your only commitment is to sign an NDA. I do recommend.
Vino de Coco
I still plan on going there in person as soon as possible.
The Franklin Soil and Water Conservation District will rebate you on the purchase of a rain barrel, compost bin, “native plants or trees,” or soil testing. City of Columbus and New Albany residents can receive $100 on the purchase of trees. The link above has the details!
Under 4101 of the Ohio Administrative Code, there is “Ohio Building Code,” “Ohio Plumbing Code,” “Residential Code of Ohio,” and within the building code and residential code there are electrical and plumbing sections, but not one place for electrical and plumbing codes. If getting inspected, best to talk to inspector.
You have probably heard that the real estate market is hot. I set up my first showing for buyers at 1648 Gardenstone Drive in Worthington. It went on the market Monday, we set up the showing Tuesday, we received notification Wednesday before the showing that there were 60 showings scheduled for Thursday, so be respectful to the sellers’ home. Sure enough, it was practically a revolving door of buyer groups at the house.
The home is listed for $199,900. It is certainly a difficult market for buyers, but there is a reason for that. Interest rates are still low and the economy is good.
“It is always a good time to buy a house that you want to live in.”
Part 2
We looked at a house today, Tuesday, that went on the market yesterday, Monday. I arrived at the house, checked my e-mail while waiting for my buyers to arrive and I had a new e-mail saying the house had already gone into contract. Disappointing. We weren’t alone either. There was another group arriving also who didn’t know yet that the house was in contract.
Part 3
A house went on the market Thursday before Easter for $225K. I looked at it with buyers Saturday. They liked it so we put in an offer over asking price on Sunday, Easter Day. They had 9 total offers and accepted one at around $237K with the buyer willing to pay cash over appraisal if necessary.
Next week, renovations will be complete on apartment A3 of 695 Riverview Drive. I will live there from 1 May until I find a great deal on a house. Until then, it will serve as an office from which I plan to find this great deal on a house.
I am seeking people who want to work out of this office doing real estate in the listed fields. The fields do not compete with each other. Rather, each one strengthens the others. This can be part-time or full-time and you will use the skills and experience you already have to succeed.
Payment will be negotiated on a deal-by-deal basis, beneficial to all parties. There are industry standards from which to start negotiations.
I provide the place to work and gather.
1. Choose the Right Market Location
Right now, Columbus is the market that I know. Therefore it is the right market for me.
2. Wholesaling
We need sources of good deals on properties.
A real estate agent cannot ethically or legally broker a deal with a large profit without work like with typical wholesaling. However, I can seek a good deal on a property to live in, which is what I intend to do to start out.
3. Real Estate Agent
I am an agent now with Signature Real Estate. That doesn’t stop others from working in this office.
4. Retailing
This includes renovating and selling great deals. (flipping)
5. Landlording
We can’t legally manage properties for pay without a broker, but you can get support in managing your own.
6. Lease-Option, Rent-to-Own
One of the more creative segments. It has its place. (Linden?)
7. Be the Bank, Invest
All deals need funding, and the guy with the money deserves to be paid. Non-performing loans coming soon.
There has been much talk about the re-districting that will take place. That decision was finalized this March 2017 and the results directly from the Olentangy Local School District are available at the link above. It includes information about the elementary schools, middle schools and high schools.
This is a fun video. Even better, you can turn on subtitles and see what he is saying. Even better, you can print the transcript and read along what he is saying!
TED Talks are a great source of English language.
This is a popular song with good lyrics! There is one error in the video. She says “Come on. Come on.” She does not say, “Come one. Come One.” “Come one” doesn’t make sense.
