How did you buy the house for so cheap?
The average Joe can find great RE deals if they are patient but I feel like even the most seasoned stock investor can easily get burned.
ROI for real estate smokes any of the stock gurus here.
I'll try to break it all out later but my last deal wasn't near the homerun. Still better than the market though...
Bought a townhouse for 45k
Put 10k down
3k in new floors, interior and exterior paint.
Current value is 65k
It rents for $600 a month with my monthly at $300.
quote:I'm becoming increasingly convinced that smart money should start looking at hard assets. 95 percent is alot but I get what you're saying. The profit from selling a hud house is tax free? And are you just talking about picking a foreclosed house up cheap and making it look respectable before selling it?
95%. Foolish or not, I don't like to invest in things that are not tangible.
I'd be willing to bet my ROI for real estate smokes any of the stock gurus here. I bought another house this year as my primary residence. I utilized a $100 down payment program offered by HUD. The house was picked up for $52,000 with $12,000 more dedicated to repairs(new windows, refinishing the hard woods, new appliances, etc.)
I could sell the house tomorrow for $125,000 or wait a few months and get closer to $135,000.
So I only put $100 of my own money into a tangible asset that I can sell tax free in two years or less (if certain requirements are met) and make a profit of near $50,000 - $60,000 dollars.
I've done numerous deals like this and so can anyone else. The average Joe can find great RE deals if they are patient but I feel like even the most seasoned stock investor can easily get burned.
The profit from selling a hud house is tax free?
quote:It's an interesting market.
Go to areas that have been in a downturn and are starting to come back. I'm closing on a rental house this week that is selling nearly 40% below its original price and only 9 years old and in great shape.