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 Replies: 23 / Views: 3,071 |
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Pillar of the Community
United States
1348 Posts |
So I recently had saved up around $22k. Some from reenlistment bonuses and some from buying cheap at auctions. While I was at an auction the lady's house who was deceased was also to be sold. It was worth about $25-35k in its present condition. The bid was $12,500 so I bid $13k I ended up winning the auction and was pretty happy. I know I need to put about $12k into it and i'll be up to date and legally safe. The house is located right near the Air Force Base so I know I will be able to rent it out easily after I fix it up a bit. I planned using the remaing $9k in savings to do most of the updates. Then rent it out
Here is where the wrench comes. Just yesterday I found another home on the market for just under $10k and I know its a steal, so I put in a bid on it. I figure I will get it because no other bids have been submitted yet. With the $13k I just spent and the $10k I'm putting in on a bid for this house, I will be House broke (no money to fix the first one up)
So I am deciding to sell some of the high dollar coins in my collection. I figure they are worth about 6500-7k retail and I hope to get 6k out of them. I know its the best move because I will be able to instantly start earning income from the properties where the coins will never amount to a sale until I die or would finally decide to sell them.
I really don't want to take a loan out because then I will be paying interest on the money and to me that doesn't makes sense when I have the money in my hobby.
How did you get past selling some of your prized possessions?
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Pillar of the Community
Mexico
1304 Posts |
w1a9c8k5, I recently had to liquidate everything I owned and that included my meager coin collection that I had been working on since childhood. The simple fact of the matter is that it was a hobby, not my first born. My priorities were forced into a different direction, so I focused on the reason I was selling, not the heartbreak involved. Since then, I have been able to come back to the hobby with a vengeance and the only regret is having sold the ASE that my deceased father gave me. I'd give good money to get that back. Edited for spelling Edited by harrison2
12/28/2011 2:26 pm
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Pillar of the Community
United States
7840 Posts |
Sell one of the houses now (with increased advertising than before), and keep enjoying your coin collection...and you can work on the other in between periods of enjoying your collection. Been there, done that (not with houses). You have to weigh your options very carefully before you jump in. I have held short as recent as last night on a potential steal, but it was my (in)action that I have to deal with. You have to deal with your action. It seems (to me) that you wanted (valued) the house(s) more than your collection. I have done the same thing with my coins versus my antique railroad grade pocket watches.  I know what others will say on the Forum, but IMO, it would be best to put them out on ebay, single type auctions. Yes there are the fees, but coins do not seem to move very well here as of late. And you have the world-wide audience of ebay.  My wife has been telling me for years that I will never be satisfied with what I have, and she is right. It's one of my inner-demons.  Someone mentioned in another thread that they are holding off til February to list anything on ebay. Makes sense, people are recovering from the holidays and getting geared up for tax season. However, if you are buying, this may be the best time! Success! Edited by oih82w8
12/28/2011 4:06 pm
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Valued Member
United States
123 Posts |
You prioritized that second rental house over your prized coins when you made the decision to purchase the second house. So you get past selling your prized possessions two ways:
1.) Keep reminding yourself that this was your choice to make and that you made it.
2.) Keep looking ahead to the benefits of this choice (rental income) and specifics of how this will benefit you in the future (more financial security/passive income stream/opportunity to purchase more coins)
In other words, focus on the positive and on the future reward rather than the current sacrifice.
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Pillar of the Community
 United States
1348 Posts |
Those are all great peices of advice. I figure with the rental income maybe i'll be able to buy the coins back in a few short years. Thanks all
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Pillar of the Community
United States
3540 Posts |
w1 - I don't think I would buy the second house. The first is NOT making income and is NOT ready to make income. Yes, this is called the "bird in hand....".
You will end up with 2 houses that are not making income.
Trust me. No different than the 4 muscle cars that I owned. All 4 are righteous cars, but none were finished. All ran, drove, licensed, insured, but none were finished. Yes, they are worth a pretty penny, but were not fully functional for me. So, they were sold. I am actually relieved that they are sold.
Concentrate on one house, get the income coming in, THEN, go look for another.
FYI - if you have never been a landlord before, you have some HARD times dealing with people in your future. Hire a lawyer and have an ironclad contract drawn up. Do NOT be afraid to charge a little extra either.
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Pillar of the Community
United States
7840 Posts |
acloco, curious, what cars did you have? I miss my '70 Mustang...and my dad's '62 409. Edited by oih82w8
12/28/2011 4:03 pm
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Bedrock of the Community
Canada
10743 Posts |
My advice... buy both houses, keep your coins, take out a loan on the second house, then rent it out, the rent should probably cover your payments.  |
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Pillar of the Community
3352 Posts |
=> $10,000 houses!? ... seriously? Man, I live in Northern butt-pooch Canada and I'm paying $200,000 for my dojo! If I were you, I'd buy the two houses and then try to make/keep them in good enough shape => "eventually" your two $10,000 houses are gonna buy a few good coins, once the economy rebounds, yes? => historically, property/housing is a sound investment ... => however, just try wrestling "my" coins away from me! (yah, you're between a rock and hard place) Roll dem dice!   |
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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
9399 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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Replies: 23 / Views: 3,071 |
Posted 12/28/2011 2:32 pm
