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 Replies: 23 / Views: 3,077 |
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Valued Member
United States
424 Posts |
LOL I'm with Steve!
Sell the first house...now. You said it's worth 25, but you only paid 13, so put it out for 20, make some money fix the second house, and keep the coins...
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Pillar of the Community
Canada
1554 Posts |
 NEVER give up the Hobby, you must never surrender, never! Glenn  |
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Pillar of the Community
Australia
9461 Posts |
I can't believe that you can buy a house for $10K! Where I live you can't even buy a block of land for under $275,000, and then it would cost you the same to build a house. Steve  |
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Valued Member
Sweden
71 Posts |
A house for 10k? The zero on his keyboard must be stuck...  |
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Moderator
 United States
16679 Posts |
Quote:
$10,000 houses!? ... seriously?
Come to bankrupt Southern California. That will buy you the tool shed that goes out back. swcoin.ecrater.com
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Rest in Peace
United States
9104 Posts |
For those who don't believe $10,000 houses, ebay Akron house. Back to the OP. Don't sell the coins unless you feel they've peaked. If you can borrow money, rates are so ridiculously low you can't help but make money, and you'll make more on two hice than one. If you're a handyman, housing is a great way to make money. Military renters are great. Any problem, you tell their CO, and after a few rounds of "pushup 'til you puke", they get solved real quickly. |
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Valued Member
United States
85 Posts |
Why not find the right renter? What I mean by this is find a CE airman who is handy and able to fix it, offer him the house to rent at a set monthly price, but caveat the rental agreement so that it includes provisions for repairs. A CE airman will have the skills necessary to perform most of the labor required, and the rental agreement will provide him the ability to get reimbursed for expenses such as material.. So, Let's say you set the rental price at $500 a month, He discusses it with you and you both conclude it requires new wiring and the material will cost $800. He pays for the material out of his pocket, performs the required work and passes inspection, provides you with receipts. That month he doesn't pay you any rent, and the following month he only pay's $200. You don't have rental income for the month, but the new wiring increases the value of the home and you get out of paying labor.
The numbers were completely hypothetical but the point is come up with alternate solutions, you don't necessarily have to sell your collection, and you also don't have to take out a loan. In fact taking out a loan against the house for repairs is a risk. When you take out a loan and you have renters paying the payment everything works out great, but as soon as you lose a renter or two and you find yourself having to come out of pocket for the payments that's where you can really start to get in trouble.
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Bedrock of the Community
United States
20753 Posts |
Quote:
I can't believe that you can buy a house for $10K! Where I live you can't even buy a block of land for under $275,000, and then it would cost you the same to build a house.
Steve Similar all over the Chicago area but most people are really afraid to spend $0.10 on them. Many, many around this area are dirt cheap and no buyers. AND here is the worst part. NO RENTERS EITHER. And that is where you well may fall flat on your face. I suggest getting rid of one of them as fast as you can. If you don't and spend money fixing even one up and can't find a renter, then what? A friend of mine did that once, when he finally got a renter, they distroyed so much of the house, he had to start all over. Sue them? How? They just fled back to the country they came from. A person around here had a small store. Rented it out. One weekend the renters stripped the place, took off and were never hear from again. Again, I suggest getting rid of one of those houses fast. Work on just one, hopefully you can get a renter worth having. Be carefull in that buisness. PS: Keep your coins. |
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Rest in Peace
United States
9104 Posts |
That's when you sell the coins. They're your ace in the hole.
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Pillar of the Community
United States
666 Posts |
Buy both houses, don't sell any of your coins. Interest rates are at crazy levels. Take out a home equity loan on one of the two (I'd take it out on the lesser of the two). Use that for repairs. On a 10k loan at 5% for 10 years you're looking at a tad over $100 a month. You shouldn't have any problem with the loan since the house would be secured.
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Pillar of the Community
 United States
1348 Posts |
Good points from most of you, and yes I have already bought 1 house for 13k and I jsut got notified today my bid for 10k was accepted by Fannie Mae. I hate to get a loan for all of this but I understand everyones point. I think I will try to sell maybe 1 or 2 of my coins since I got them for such a good price initially.
-My parents are landlords, so I have an idea of what its like to be a landlord.
-Great idea about letting a CE guy move in. I think I might actually try that. Thanks
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Rest in Peace
United States
9104 Posts |
A friend of mine had a property trashed by the previous tenant. She asked if I knew anyone, and I pointed out a poster on another forum.
They agreed on rent, with work equity for deposit. A few months went by with rent on time, but no indication of repair.
"Oh, we figured we had to buy the materials!"
That was over five years ago. Everyone still happy.
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Valued Member
United States
89 Posts |
Too bad the property taxes are sky rocketing it doesn't matter how cheap you can grab the houses.
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Rest in Peace
United States
9104 Posts |
 , Mpc! Property taxes are usually voted for, and if you buy a house for considerably less than it's appraised value, you can normally get it re-appraised at the lower price. Kinda hard for the gubmint to claim it's a $60,000 house if you were high bidder at $10,000. |
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Valued Member
United States
318 Posts |
You and me bought coins to save for a rainy day. And it's raining cats and dogs on your head!
Seriously though, don't be emotional about it. Make an educated business decision. Do you think coin prices are going up faster than rental income will replenish your collection? Don't sell, find another way. If you think coin prices will be stable and housing will soar, sell and fix those houses.
I will offer one word of advice: Fix one at a time. Don't take on too much at once. Get one house generating income, divert that positive cashflow to fixing the next. There is always a chance you made a mistake and paid too much, even though it was super cheap. You will be able to tell after you get the first rented. Don't delude yourself, don't be afraid to cut your losses. There's no shame in making a mistake. It's just business.
But biggest of all darn it, good on ya for taking a gamble and going for the win!
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Posted 12/28/2011 7:27 pm
