? About paying off a house

[Big Dad]

Do you ever really pay them off , my ding a ling nephew has a keep up with the jones house and he pays $6600 a year in property tax

[LANTIRN]

Do you ever really pay them off , my ding a ling nephew has a keep up with the jones house and he pays $6600 a year in property tax

In that sense no, there isn't any real estate you ever own since the greedy bastards want taxes every year. I think out taxes are around $2,000 per year but that is still damned better than $1200 to $1400 per month. Two months of saving the old mortgage payment solves that. Everything should be taxed by a one time sales tax and it should be done, but for some damned reason a long time ago people voted in favor of annual property taxes and they will never go away. I really don't know how they came to exist that way but I have a better chance of Jessica Biel and Anna Kornikova showing up naked to my house with a note from my wife saying "have a good time" than we do of getting rid of that tax setup.

[svauto-erotic855]

For thousands of years people owned homes without being able to get a mortgage. The only thing a mortgage does is allow for a very large markup on a new home and it creates an entire industry of useless people who want a piece of your pie when ever a piece of property changes hands. Think of how much added productivity there would be in the economy if every assessor, broker, realtor, loan officer, banker, etc were doing something truly productive instead of shuffling paper.

[yellowstang]

Do you ever really pay them off , my ding a ling nephew has a keep up with the jones house and he pays $6600 a year in property tax

Shit, in Texas that tax amount is normal, cheap in some areas!

[David]

People that live in special districts get fucked twice on taxes.

[The King]

Some of us aren't baller enough to carry cash for a vacation or road trip therefore we use a credit card, and hopefully one that does not require an annual fee or $300 credit limit because of a shitty credit score.

If you're able to pay ca$h for a cowskin rug, you qualify as baller...

[akfodysvn]

Yep, my rate is 2.85% on a 7 year ARM. If it resets to a lot higher rate, I'll refi into a fixed rate mortgage or pay it off. I have enough other itemized deductions to not do the standard deduction ever, so I like the mortgage interest deduction.

On a somewhat related note, my brother is building an empire up in Tulsa. He's in his mid 30's, flies for Delta (reserves in F-16's in Air National Guard, lucky bastard), but he has a house flip and renting business on the side. He's up to 6-8 rent houses now. I can't keep up. He buys them on the sheriff auction steps. He has an awesome spreadsheet that he can download data from the Tulsa foreclosure website automatically and then he sorts it and looks for good opportunities. He then buys houses on the cheap. He and his wife fix them up and rent them or flip them for a 5 figure profit in a few months. They really know what they're doing.

Anyway, he has several mortgages at pretty low rates and he is using tenants to pay the mortgage and building equity at the same time. So, he has 5 figure equity in each of his homes already and has pretty decent positive cash flow each month.

So, he'd never be able to do that without access to cheap credit. He is levering the right way. He has a bachelor/masters in accounting and learned from some other guys in his squadron that were doing it and really knew what they were doing. One of the pilots has a property management company with several hundred properties under management. It's pretty crazy when some of these pilots are pulling more money with side businesses than with their pilot salary. Good for them.

What's avg purchase and money spent on rehab? Sheriff auctions usually requires payment in full at the time of the auction... making it very difficult for most.

I too am looking into the buy, rehab, rent, refinance, repeat strategy. I wish I had a local invested who's brain I could pick.

[Big A]

I would Imagine that it's entirely dependent upon the condition of the house being flipped. The key is getting a good enough price on a house, that allows room for the amount of work needed to bring the value up, and some profit. Along with getting a good price for labor and materials and labor, the answer to this is what can make or break a flipper.

[SS Junk]

If you're able to pay ca$h for a cowskin rug, you qualify as baller...

The logic is baffling. Keep a credit card, pay it off every month= stellar credit score.

[akfodysvn]

I would Imagine that it's entirely dependent upon the condition of the house being flipped. The key is getting a good enough price on a house, that allows room for the amount of work needed to bring the value up, and some profit. Along with getting a good price for labor and materials and labor, the answer to this is what can make or break a flipper.

I think we all understand that. Im curious what market he actually has his best luck in. What % is dedicated to repairs and how much equity he builds after the rehab. What's the actual cash flow on rentals after holding back for vacancies, repairs, capital expenses, etc. How did he come up with a large amount of cash to buy his first and did he fo solo or with another investor?

How did