Guest Magnum Rockwilder Posted January 9, 2005 Share Posted January 9, 2005 I have a chance to buy some property in St Petersburg, FL and I'm trying to decide if it's a good idea. Description: 65' X 130' lot (the narrow side faces the road) Currently in the County, but soon to be annexed to the city(or so goes the rumor). Low crime area, but there are quite a few run down houses and mobile homes in the area. A developer is actively buying properties and building new houses. There are at least 7 in the neighborhood so far. Dead end street w/ 5 homes on one side and 2 on the other side. Currently has a '76 model 2br/1.5ba 1000sq/ft mobile home w/ an add-on carport. Needs a good cleanup and new floors in 2 rooms but is liveable. Home has been rented for $500/mo for the last 3 years, and that's cheaper than similar homes nearby by $100-$150. Neighbors across the street have a wooded lot (citrus trees and cottonwoods) with two houses owned by the same family, houses aren't even easily seen from the road. Houses to the left are two nice brand new homes that sold for $150k, both on the same 65' x 130' lot with a fence dividing them. The developer paid $50k for the lot 3 years ago. Houses to the right are all mobile homes. The one next door is a new $65k "modular home" owned by a couple in their 70's with medical problems. The other 3 down the street are run down older mobile homes inhabited by a large family of about 10 rednecks that all drive 5.0 Mustangs and love burnouts and revving. Lots of activity. The house behind is on a 65' x 65' lot and isn't finished yet. It's a nice new house and is supposed to sell for $150k. The lot sold for $40k 2 years ago. The current owner of the property I'm interested in is in his 80's and lives in Canada. He's offering to sell me the whole shebang for $50k. He wants me to give him $10k down and he'll finance it for 10 years at $475/mo. I'm thinking I can buy the place and live in it for a little while and fix it up, then rent it out to an older couple with no kids to cover the mortgage payment. After a few years of this, after the neighborhood is better developed and the value takes a jump I can sell it to a developer or individual. I could also rent it out for 10 years until it's paid off, then sit on it until either the property value takes a huge jump or the neighborhood is developed and I have the money to build my own home on the property. I currently am renting a home in Tampa Bay and planned to move to Arkansas in May/June to buy a dirt cheap house. Any advice? Quote Link to comment Share on other sites More sharing options...
mark Posted January 10, 2005 Share Posted January 10, 2005 It sounds like a good deal. I own a couple of commerical places right now. Cost really doesn't matter if the numbers work. It sounds like property values are on the way up and the rental income will cover most of the payments. Also need to consider the cost of property taxes and insurance and the inevatiable repairs. When was the last time the HVAC was checked? Another thing to consider, If you are not around to keep an eye on the property you need some one that can, a friend, trusted family member or a management company. What is the interest rate the current owner will give you? If he dies, do you make payments to the estate, his heirs, or is the loan due? Food for thought. Mark Quote Link to comment Share on other sites More sharing options...
dr_hunt Posted January 10, 2005 Share Posted January 10, 2005 Do it. You can't loose. Fix it up and sell it if nothing else for 75K or more and then move. Real estate is very profitable if you do it right and find folks like this who'll sell on contract. Jew them down on the down payment, be a horse trader, life is short. Quote Link to comment Share on other sites More sharing options...
Guest Magnum Rockwilder Posted January 10, 2005 Share Posted January 10, 2005 How do I find out about property taxes and insurance? My plan was to rent the place out for about $600 a month, and that would leave about $100/mo after the mortgage payment that I could put into an account for repairs and taxes. Basically I wouldn't be pocketing any money off the property, but it would be paying for itself. The next door neighbors are elderly and are friends of mine. They offered to help with property management if I buy the place and rent it out. I also have a few other friends in the area that could help out if necessary. Basically I'd need a handyman to do small jobs while I'm in Arkansas (if I move there), and I'd need someone to help collect if rent is late, but a lot of that can be prevented by careful screening of potential renters, or so I'd like to think. Then once it's paid off, I can either keep renting it and pocket all the rental income, or sell it for a lump sum. Repairs needed: 2 rooms need plywood laid on the floors because the original particle board fell through, cost is about $200 for the plywood. Needs new carpet, $250 for the cheap stuff. Needs paint inside and outside, estimated $200 for supplies. One small roof leak needs to be sealed, should only cost like $10 for some epoxy. A/C has a freon leak and needs a line repaired and needs to be recharged($250), or I can get a new scratch and dent unit for $600 and install it myself. ...and the yard needs to be landscaped and have some junk hauled off, all fo which I can do. I'm supposed to call the owner Monday and give him a yes or no. If I don't want it, he's selling it to the developer, but he wanted to give me first shot because he likes me and my wife. Quote Link to comment Share on other sites More sharing options...
dsommer Posted January 10, 2005 Share Posted January 10, 2005 I'd jump on it for the price!!! BUT this won't be happening in my area of NW Arkansas Quote: planned to move to Arkansas in May/June to buy a dirt cheap house. Quote Link to comment Share on other sites More sharing options...
Guest Magnum Rockwilder Posted January 11, 2005 Share Posted January 11, 2005 The area of AR that I'm considering is NE AR, and I've found houses for as cheap as $6k for extreme fixer-uppers, and $35k for nice houses that need nothing. Check out this site: http://www.century21-mcwaters.com/ You should see quite a few houses for dirt cheap. Quote Link to comment Share on other sites More sharing options...
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