ksncinci
02-13-2008, 06:29 PM
Hey guys this is my first post, I decided to give some of my starting strategies a test drive here on the forums and see what kind of feedback i get so honest opinions are appreciated.
I have about $20,000 saved up for a down payment on a house. I have been house hunting recently and since it's a soft market there have been some pretty nice deals around. There is one house that caught my eye, it is a 5 bedroom house with 2 baths and 11 rooms total. It's a 40 X 125 lot, and overall a very nice house. It has had some renovations to it on the inside and the outside is very decent, nothing that would really turn away a buyer. The LP is 199 but my Realtor thinks we can get it for 180. Assuming I were to get it for 180 and put 20 down, I would pay mortgage on 160 which i think is roughly around 1,000 a month.
Ok so here is the question. Would it be smarter to try and find as many people as possible to fill the house which would be five which would allow me to live in the house for free (if not maybe make a small profit), but even in such a decent sized house 5 people would be pretty crowded. 4 wouldn't be so bad, I wouldn't be able to make a profit but I'm pretty sure I'd be able to live in the house for real cheap. So that would be strat A, in which I buy the house and try and get it to be a true asset. Or B, only take on one or two roomates in which case I'd have to chip in decently on the mortgage payment but in which case I'd be able to install an extra bathroom on the third floor where there are two of the five bedrooms which would prolly boost the price of the house a decent amount come sellers market which would yield a profit there as well.
As for the neighborhood breakdown. It's pretty nice, it's near a developing plaza which I think the benefits will spillover into the street the house is on which could also boost the value.
This is a pretty general break down so if you need more info let me know. If you live in Cincinnati let me know and I can give you the specific neighborhood information if it helps you out. And if either one of those strategies suck let me know and maybe suggest one of your own. Thanks again everybody.
I have about $20,000 saved up for a down payment on a house. I have been house hunting recently and since it's a soft market there have been some pretty nice deals around. There is one house that caught my eye, it is a 5 bedroom house with 2 baths and 11 rooms total. It's a 40 X 125 lot, and overall a very nice house. It has had some renovations to it on the inside and the outside is very decent, nothing that would really turn away a buyer. The LP is 199 but my Realtor thinks we can get it for 180. Assuming I were to get it for 180 and put 20 down, I would pay mortgage on 160 which i think is roughly around 1,000 a month.
Ok so here is the question. Would it be smarter to try and find as many people as possible to fill the house which would be five which would allow me to live in the house for free (if not maybe make a small profit), but even in such a decent sized house 5 people would be pretty crowded. 4 wouldn't be so bad, I wouldn't be able to make a profit but I'm pretty sure I'd be able to live in the house for real cheap. So that would be strat A, in which I buy the house and try and get it to be a true asset. Or B, only take on one or two roomates in which case I'd have to chip in decently on the mortgage payment but in which case I'd be able to install an extra bathroom on the third floor where there are two of the five bedrooms which would prolly boost the price of the house a decent amount come sellers market which would yield a profit there as well.
As for the neighborhood breakdown. It's pretty nice, it's near a developing plaza which I think the benefits will spillover into the street the house is on which could also boost the value.
This is a pretty general break down so if you need more info let me know. If you live in Cincinnati let me know and I can give you the specific neighborhood information if it helps you out. And if either one of those strategies suck let me know and maybe suggest one of your own. Thanks again everybody.