Everyone who knows me knows that I am not exactly the sharpest knife in the drawer. I am not exactly sure if it was a nature or nurture problem, but somehow I have always seemed to be a little late to the good-ideas-parties that other people have.
I stumbled on something this week that I suspect I am not too late on – and so being the suddenly-enlightened-genious that I am, I thought I would share.
Did you know that there are unbelievable deals out there on Phoenix area homes?
Sure, you read about it in the paper – or maybe you have heard of someone who is making money by investing in real estate now… but for whatever reason, you have been on the sidelines.
It might be time to get into the game.
Case in point:
This home was bank owned. The investor bought it for $24,000 in cash directly from the lender.
The investor then hired a Phoenix trashout company to remove all of the debris and do some remodeling so that the property is move-in-ready.
Total cost for the remodeling and trashout?
Somewhere around around $6,000.
$24,000 + $6,000 = $30,000. Let’s say that he decides to get a mortgage for the $30,000. His total PITI payment for a $30,000 mortgage assuming a higher than normal rate and estimating high for taxes is around $350.
Think you can rent out a 3 bedroom 2 bath house for more than $350 in Phoenix, Arizona?
I know you can.
The biggest decision you might have to make at that point is whether you want to rent it out or sell it for more than $30,000.
Phoenix Mortgage Rates for May 1 2009