REO: Unbelievable Cash Flow right now

I am looking at a townhouse (details purposefully omitted to avoid competition) for a price of 65K near DC. It's not a super great one, of course, needs about 10K in repair/revnovation. I can now rent it out at the lower end of the current market rental rate, $1000/month. To me, this is unbelievable earnings for a mere 75K. You can beat me if you can find a better investment in this world. But I don't think you can. In 6 years, I can use rental income to double my money, not to mention that this price is a fire-sale price discounted from 2005's 300K. I will try to get it financed with 80% loan on 65K, however, I am not sure how I can get a 50K loan, do you know any banks will do that? If I can't get the loan, I will probably pay cash.

所有跟帖： 

• Guess what, the greatest thing for this is: Permanent cash cow -miat42- ♂ (1032 bytes) () 10/20/2008 postreply 13:01:44

• I got the cash snowball rolling now -大家帮我买房- ♂ (421 bytes) () 10/20/2008 postreply 16:03:03

• It's hard -4008- ♂ (147 bytes) () 10/20/2008 postreply 13:01:57

• Maybe that's the way to go, wondering if any better idea? -miat42- ♂ (0 bytes) () 10/20/2008 postreply 13:04:42

• Of course lots of it. That exactly gets the banks into trouble -2526- ♂ (86 bytes) () 10/20/2008 postreply 13:30:51

• No, banks won't do that. -miat42- ♂ (0 bytes) () 10/20/2008 postreply 13:59:39

• Indeed good CF if you can KEEP renting it out for $1000/m, howev -抛玉引砖- ♂ (530 bytes) () 10/20/2008 postreply 14:04:43

• No, problem, I have 300-400 cushion already. Worst case -miat42- ♂ (457 bytes) () 10/20/2008 postreply 14:09:08

• hehe, if you can get it later for 40k-50k, do you still think -抛玉引砖- ♂ (100 bytes) () 10/20/2008 postreply 14:39:22

• The bottom is within 12 months for these prices -miat42- ♂ (485 bytes) () 10/20/2008 postreply 14:57:22

• 回复：REO: Unbelievable Cash Flow right now -huang93- ♀ (119 bytes) () 10/20/2008 postreply 14:07:00

• Yes, that beat my investment. Congratulations! -miat42- ♂ (0 bytes) () 10/20/2008 postreply 14:11:09

• 请问你在哪里？ -92168- ♀ (0 bytes) () 10/20/2008 postreply 16:26:51

• wyoming -huang93- ♀ (0 bytes) () 10/20/2008 postreply 17:37:44

• BrokeBack Mountain country -miat42- ♂ (0 bytes) () 10/21/2008 postreply 07:57:25

• wow, 300k to 65k, that's crazy! -(弹弹)- ♂ (0 bytes) () 10/20/2008 postreply 14:28:39

• Banks don't care, they can sell at any price -miat42- ♂ (0 bytes) () 10/20/2008 postreply 14:53:13

• I join cutuslake urge you to hold a yatch party 2010! -家庭煮夫- ♂ (0 bytes) () 10/20/2008 postreply 14:29:09

• LOL. I want in~ -(弹弹)- ♂ (0 bytes) () 10/20/2008 postreply 14:48:14

• I think you meant 2018 :-) -miat42- ♂ (0 bytes) () 10/20/2008 postreply 15:00:48

• OK, yatch party 2018! All people invited!!!! -家庭煮夫- ♂ (0 bytes) () 10/20/2008 postreply 15:50:13

• One agent told me that I may get non Fannie, Freddie loans -miat42- ♂ (283 bytes) () 10/20/2008 postreply 14:48:41

• if you heard any words, please keep us posted. good luck -blueblue- ♀ (0 bytes) () 10/20/2008 postreply 14:55:58

• Sure will... -miat42- ♂ (0 bytes) () 10/20/2008 postreply 14:58:10

• 回复：One agent told me that I may get non Fannie, Freddie loans -4008- ♂ (582 bytes) () 10/20/2008 postreply 17:56:29

• Thanks, I'll see what this agent can get for me. -miat42- ♂ (329 bytes) () 10/20/2008 postreply 18:11:07

• 这房子怎么降这么多呀,太可怕了 -cocozz- ♀ (0 bytes) () 10/20/2008 postreply 17:48:18

• Great cash cow! -cultuslake- ♂ (0 bytes) () 10/20/2008 postreply 22:17:32

• 这房子有什么特别原因降价这么多吗。怎么我找不到这么便宜的房子呢 -最爱周五- ♀ (62 bytes) () 10/21/2008 postreply 05:27:56