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      06-15-2011, 12:52 PM   #1
08rookie
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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....
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      06-15-2011, 12:55 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, 01:22 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, 01:23 PM   #4
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Quote:
Originally Posted by Blake View Post
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.
my friend has a title agency, but would i be able to look into the title through the city's recorder of deeds agency? any idea if they would be able to give out information to a buyer? i guess a title agency is going to be included in one way or another
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      06-15-2011, 01:26 PM   #5
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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
foundation problems would be a turn off...however, these are not free standing properties so a foundation problem would also effect the property to the right or left of the selling property...
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      06-15-2011, 01:30 PM   #6
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Quote:
Originally Posted by Blake View Post
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.
Why would you not use an agent? The seller pays for everything? Then everything is done correctly and you have something to fall back on when there are problems.

Either that or use an attorney.
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      06-15-2011, 01:32 PM   #7
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8k?!

I'd hate to be the seller.
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      06-15-2011, 01:33 PM   #8
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damn that's crazy you can buy a house that cheap, and it doesn't sound like a bad idea.
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      06-15-2011, 02:12 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, 02:25 PM   #10
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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
check out zillow...

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, 02:26 PM   #11
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Originally Posted by 08rookie View Post
check out zillow...

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.
zillow is not accurate. (at least in my area)
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      06-15-2011, 02:33 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, 02:37 PM   #13
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Quote:
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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
You have to have contingency's in your offer for right to inspect

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, 05:16 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, 05:31 PM   #15
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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.
All low income housing is that way.
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      06-15-2011, 07:09 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, 08:32 PM   #17
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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
i can only imagine the red tape surrounding the application process when it comes to state funds...whats the criteria for a section 8 property? any idea? can any property in a certain zip collect section 8?
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      06-15-2011, 08:55 PM   #18
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i can only imagine the red tape surrounding the application process when it comes to state funds...whats the criteria for a section 8 property? any idea? can any property in a certain zip collect section 8?
Contact an attorney
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      06-15-2011, 10:06 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, 06:34 AM   #20
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i can only imagine the red tape surrounding the application process when it comes to state funds...whats the criteria for a section 8 property? any idea? can any property in a certain zip collect section 8?
It has become easier as of late due to the housing shortage for low income families. You need a section 8 inspection which is very simialr to a HUD inspection, go to your state housing site and look at the application process.
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, 10:41 AM   #21
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Quote:
Originally Posted by E90SoFlo View Post
You have to have contingency's in your offer for right to inspect

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.
I would never have a client buy a house without an engineer report, and 70% of the price reductions are rooted in their findings. Its extremely helpful, and if you had a buyer agency with an agent they will def. make sure everything goes as well as it could.

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, 11:13 AM   #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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