06-15-2011, 01:52 PM | #1 |
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buying a house for 8k
im speaking of inner city row homes, 2 floors, two to three bedrooms, around 900-1100 square feet that get anywhere from 500 to 600 a month for rent average house price is 35-50k in the neighborhood, however, there are some houses that are really super-duper cheap (under 10k)...one property was listed for 5k.
ive never bought a house before, however i can access a liquid 30k. is an agent needed for a property this cheap? if i can buy with cash, will closing be within a week? is it like buying a car...sign title and hand over keys? do i need to clear the title with the city to check for back taxes or liens? who would have these answers, the listing agent? the city? ( i would assume a listing agent would say anything to sell the house regardless if his information is correct?) im thinking buy a house for 5 to 7k, drop 3 to 5k into the property with a totally investment under 15k....i can rent the property for 500 a month til the market comes back then sell.... |
06-15-2011, 01:55 PM | #2 |
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well for something that cheap, i wouldn't use an agent. you'll want to use a title insurance company, though. they'll make sure that all liens are clear and paperwork is done properly at closing, or you could get fucked on something terribly small. it'll probably be pricy compared to the small purchase price, but worth it if something adverse were to come up with the deed.
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06-15-2011, 02:22 PM | #3 |
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what blake said, but make sure you do some research into the house and even what it takes to rent.
That cheap could mean foundation problems which could lead to a massive lawsuit on you. Basically do your research on the property and the reason WHY it's selling for so cheap |
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06-15-2011, 02:23 PM | #4 | |
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06-15-2011, 02:26 PM | #5 | |
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06-15-2011, 02:30 PM | #6 | |
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Either that or use an attorney. |
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06-15-2011, 03:12 PM | #9 |
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If OP can seriously buy a house for 8k and make $500/month renting it, that's the best return on money you can find. Go lease a BMW or something for $500/month on 8k! haha
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06-15-2011, 03:25 PM | #10 | |
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zip codes...19133, 19134, 19140 north philadelphia...my home away from home haha.. i work here, been here for ten years, people are happy to rent and regardless of crime and poverty there is still pride in ownership on some blocks. |
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06-15-2011, 03:26 PM | #11 |
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zillow is not accurate. (at least in my area)
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06-15-2011, 03:33 PM | #12 |
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First, have the house inspected by an EGNINEER, not a home inspector. You want someone with P.E on their business cards. This is done once you put your offer and the seller accepts. He will give you a full report on the condition of the house inside and out. Then, use your judgement if you want to get involved. A house for this low price? gotta be something wrong. look into it, you can use the engineer report as leverage to lower the price of the house later at closing.
What company is selling the house? real estate agency such as Re/Max or Cent. 21? If your buying all cash it makes the process much easier and quicker. You want to make sure the seller does not have Color of title which is where it appears that they own the house, you buy it, give them the cash, and then come to find out a month later you dont own anything because the person never had the title, but it appeared like they did. lots of scams these days, use a trusted realtor. I recommend highering a Re/Max agent as a buyer agency, have them represent you in your best interest. Good luck OP, pm me with any further questions, I would be glad to assist you And yes, the seller does pay for YOUR broker. So it doesnt hurt your pocket to get a licensed realtor/broker to represent you. Its alot more hassle than you think, let them handle it.
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06-15-2011, 03:37 PM | #13 | |
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You will not be able to negotiate the price at closing, that is all done through the negotiation part in contracts. You should use a realtor and get a "abstract" of title (you can get from an attorney or title company) to show if there are any liens etc. Also purchase a title insurance policy that will insure you of any problems. |
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06-15-2011, 06:16 PM | #14 |
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The only issues you have to consider about renting out a row home in philly and this may not matter to you. You are not going to rent to the most reputable people and the can care less about your property and will trash it at a drop of hat. So they can pretty much crew up any money you made from them. Lastly, do not ever rent to a single mom, incredibly hard to get them out once in.
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06-15-2011, 06:31 PM | #15 | |
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06-15-2011, 08:09 PM | #16 |
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Go section 8 on a place like that guaranteed $$$$
the renter pays anywhere from 18 bucks to 100 a month and Uncle Sam pays the rest. Section 8 laws have been changed so you dont have to worry about damage and non payment like years past. The renter will lose section 8 priveledge FOREVER if the do not pay or damage your property. Go ahead and use an agent or atty whats 3-5% in 8 grand anyway |
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06-15-2011, 09:32 PM | #17 | |
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06-15-2011, 09:55 PM | #18 |
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06-15-2011, 11:06 PM | #19 |
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The properties for $8k on Zillow with the zipcodes you listed are vacant land. They are $8k for a reason. Check zoning and cost of permits before you buy.
If you are looking for a cheap cash property try researching county tax sales. |
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06-16-2011, 07:34 AM | #20 | |
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I would only go section 8 on a property like this because you are going to have a nightmare trying to collect rent from someone who can only afford to live in a slum,credit issues,etc. |
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06-16-2011, 11:41 AM | #21 | |
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It depends on the situation, but I just try to get whats fair for both seller and buyer. Each situation is different, as long as the house is sold at a fair price according to its condition. The seller will state what condition/warranties go along with the title. Make sure you get a general warranty on the deed. Make sure to look for state tax liens as they will take priority over mechanics liens. if you hear the words "quitclaim" run the other way. Good luck op, and take ear to E90SoFlo's advice as well
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06-16-2011, 12:13 PM | #22 |
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hmm north philly...the ghetto, a house for 8K might sound like a good deal but keep in mind the area the house is it. Also your tenants will be low income, which means you will probably have to deal with him being late on rent or maybe even going one or two months without paying. Buyer beware.
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