Paid $3K / Sold for $37K
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Paid $3K / Sold for $37K (by Roy [AL]) Jun 12, 2019 7:33 AM
       Paid $3K / Sold for $37K (by myob [GA]) Jun 12, 2019 7:45 AM
       Paid $3K / Sold for $37K (by Roy [AL]) Jun 12, 2019 7:58 AM
       Paid $3K / Sold for $37K (by Deanna [TX]) Jun 12, 2019 8:11 AM
       Paid $3K / Sold for $37K (by Roy [AL]) Jun 12, 2019 8:44 AM
       Paid $3K / Sold for $37K (by myob [GA]) Jun 12, 2019 8:46 AM
       Paid $3K / Sold for $37K (by Roy [AL]) Jun 12, 2019 9:03 AM
       Paid $3K / Sold for $37K (by S i d [MO]) Jun 12, 2019 9:16 AM
       Paid $3K / Sold for $37K (by DJ [VA]) Jun 12, 2019 9:24 AM
       Paid $3K / Sold for $37K (by MikeA [TX]) Jun 12, 2019 9:32 AM
       Paid $3K / Sold for $37K (by Roy [AL]) Jun 12, 2019 9:34 AM
       Paid $3K / Sold for $37K (by Sisco [MO]) Jun 12, 2019 9:48 AM
       Paid $3K / Sold for $37K (by NE [PA]) Jun 12, 2019 9:50 AM
       Paid $3K / Sold for $37K (by S i d [MO]) Jun 12, 2019 9:52 AM
       Paid $3K / Sold for $37K (by Oregon Woodsmoke [ID]) Jun 12, 2019 9:54 AM
       Paid $3K / Sold for $37K (by Beth [WI]) Jun 12, 2019 9:54 AM
       Paid $3K / Sold for $37K (by Steve [MA]) Jun 12, 2019 10:13 AM
       Paid $3K / Sold for $37K (by RB [MI]) Jun 12, 2019 1:04 PM
       Paid $3K / Sold for $37K (by elliot [RI]) Jun 12, 2019 1:30 PM
       Paid $3K / Sold for $37K (by Roy [AL]) Jun 12, 2019 1:57 PM
       Paid $3K / Sold for $37K (by GKARL [PA]) Jun 12, 2019 2:07 PM
       Paid $3K / Sold for $37K (by Live The Dream [AZ]) Jun 12, 2019 4:22 PM
       Paid $3K / Sold for $37K (by Deanna [TX]) Jun 12, 2019 5:35 PM
       Paid $3K / Sold for $37K (by Sean [OR]) Jun 12, 2019 6:02 PM
       Paid $3K / Sold for $37K (by Roy [AL]) Jun 12, 2019 9:43 PM
       Paid $3K / Sold for $37K (by Live The Dream [AZ]) Jun 12, 2019 10:21 PM
       Paid $3K / Sold for $37K (by BRAD 20,000 [IN]) Jun 17, 2019 1:19 AM
       Paid $3K / Sold for $37K (by WMH [NC]) Jun 17, 2019 7:51 AM
       Paid $3K / Sold for $37K (by mike [CA]) Jun 17, 2019 2:22 PM

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Paid $3K / Sold for $37K (by Roy [AL]) Posted on: Jun 12, 2019 7:33 AM
Message:

In 2012, I paid $3,0000 for a fixer-upper that turned out be more of learning experience than anything else. In hindsight, I wish I had never bought it, but I did, and just had to deal with all of the problems that came with it. Yesterday I sold this house for $37,500 and I feel relieved to have this monkey off my back.

Not that it really matters, but I will provide my 'numbers' here and maybe someone can tell me if the 'show was worth the price of admission',...LOL.

2012: Paid $3,000.00 cash

Improvements: $18,000.00

My Cost Basis: $21,000.00

7 years of Depreciation: $5,000.00

Adjusted Cost Basis: $16,000.00

Total Rents (7 years) : $44,000.00

Closing Costs: $2,500.00

Capital Gains Tax: $3,000.00

--68.63.xxx.xxx




Paid $3K / Sold for $37K (by myob [GA]) Posted on: Jun 12, 2019 7:45 AM
Message:

Roy let me be one of the first. YOUR a looser!!!!!

Your cups always half full and the instructions on how to empty are under it.

Congrates to you.... --99.103.xxx.xxx




Paid $3K / Sold for $37K (by Roy [AL]) Posted on: Jun 12, 2019 7:58 AM
Message:

Myob,

The primary reason I put this house up for sale was the crummy neighborhood. This hood is 100% white trash. I could fix the house (I did) but I could not fix the neighborhood.

--68.63.xxx.xxx




Paid $3K / Sold for $37K (by Deanna [TX]) Posted on: Jun 12, 2019 8:11 AM
Message:

I like how you got $44k out of it before you cut it loose! :)

Congrats on being able to put your ($32k?) somewhere that's less stress. --107.77.xxx.xxx




Paid $3K / Sold for $37K (by Roy [AL]) Posted on: Jun 12, 2019 8:44 AM
Message:

Deanna,

You are correct, $32K after the tax man gets his share.

This house taught me more of what "not to do". Like don't get seduced by a cheap price,...there is a reason for it. And don't buy a house that was built on re-claimed swamp land. I had to install a french drain just to drain off the water that would pool up in the crawlspace. I could continue here but it is getting embarrassing. --68.63.xxx.xxx




Paid $3K / Sold for $37K (by myob [GA]) Posted on: Jun 12, 2019 8:46 AM
Message:

Roy cry me a river!!!!! At least al the way tot he bank.

Those neighborhoods are gold mines as you have demonstrated. Maybe not for the old at heart-- but profit centers.

So let me get you more cheese to go with that whine?

Deanne notice how he skimmed over the 44K? Roy maybe had you put that 44K toward more of the fixer uppers you'd be crying about only 100K profit.

YUP half empty! --99.103.xxx.xxx




Paid $3K / Sold for $37K (by Roy [AL]) Posted on: Jun 12, 2019 9:03 AM
Message:

Myob,

Skimming? You mean like 'milking the cash cow here'? This house was a cash cow but it was also a bum magnet. My last tenant was a Section 8 ($675/month) and she trashed it after 1 year. I booted her out just so I could sell the house.

I have leave here and take my cashiers check to bank. I will check back with you later. --68.63.xxx.xxx




Paid $3K / Sold for $37K (by S i d [MO]) Posted on: Jun 12, 2019 9:16 AM
Message:

Congrats, Roy!

I think any time you can make money vs. lose it in this game you've done the right thing. As you said, you learned a lot from this house. Often, "learning" = loss of money. So you did well, especially if that was one of your first "Roy houses".

If my math is right, you cleared about $11,500 on the sale of this beauty after cap gain taxes, plus you have your rent profits. Not too shabby, my friend.

--173.20.xxx.xxx




Paid $3K / Sold for $37K (by DJ [VA]) Posted on: Jun 12, 2019 9:24 AM
Message:

Money is good. A peaceful life may be better.

As has been said, most of us lost money if we say it was a "learning experience". You still made money in the process - so GOOD JOB!!

Only you will ever know if it was worth it to you.

I can't get over being able to take $5K depreciation on a place that cost $3K.

Crazy tax laws... --68.10.xxx.x




Paid $3K / Sold for $37K (by MikeA [TX]) Posted on: Jun 12, 2019 9:32 AM
Message:

Congratulations on both a good investment and in simplifying operations by unloading it. Not sure where you are going to re-park the cash and continue to get 30% return. --50.26.xx.xxx




Paid $3K / Sold for $37K (by Roy [AL]) Posted on: Jun 12, 2019 9:34 AM
Message:

DJ,

Depreciation is what it is. It is a paper deduction only. It is the Depreciation Recapture aspect that irritates me though. --68.63.xxx.xxx




Paid $3K / Sold for $37K (by Sisco [MO]) Posted on: Jun 12, 2019 9:48 AM
Message:

7 years of expenses are missing from the tally sheet, care to share? --72.172.xxx.xx




Paid $3K / Sold for $37K (by NE [PA]) Posted on: Jun 12, 2019 9:50 AM
Message:

That's all you made? --174.201.xx.xx




Paid $3K / Sold for $37K (by S i d [MO]) Posted on: Jun 12, 2019 9:52 AM
Message:

Roy, I feel your pain on the Depreciation Recapture. That said, I take the good with the bad. The fact is if we are doing our part to maintain our buildings (and I know you do!), they are NOT going down in value, but the IRS allows us to claim a paper loss as if they were.

This is why I have stated and will continue to state that depreciation is a TAX concept with no basis in reality. So if you have to sell a few and take the hit...take it, knowing that you're still shielding other income with the remaining properties.

I think you can get out of the depreciation recapture if you hold your properties in a self-directed ROTH IRA? Maybe Brad 20K or Mike Todd could confirm for us.

--173.20.xxx.xxx




Paid $3K / Sold for $37K (by Oregon Woodsmoke [ID]) Posted on: Jun 12, 2019 9:54 AM
Message:

I notice that you didn't add anything in there for the value of the education. That has to be worth a nice bit.

$18,000 in improvements is a lot of money to put into a house that only sells for $37,000 seven years later. Still, you did fine with it.

I'm going to leave that type of investment to someone else. My nerves aren't that strong. --98.146.xxx.xxx




Paid $3K / Sold for $37K (by Beth [WI]) Posted on: Jun 12, 2019 9:54 AM
Message:

And to think that I thought you always paid 5K for your houses... --47.12.xxx.xx




Paid $3K / Sold for $37K (by Steve [MA]) Posted on: Jun 12, 2019 10:13 AM
Message:

Roy it seems to me that several people help pay for your education on what to do & more importantly what not to do when buy, renting & selling property. Since acquiring, rehabbing, renting & now selling this property, I'm sure you've been able to apply this knowledge to your other purchases.

On top paying for your RE education they also gave you a nice parting gift of thousands of dollars. I'd say you did good. --96.237.xx.xx




Paid $3K / Sold for $37K (by RB [MI]) Posted on: Jun 12, 2019 1:04 PM
Message:

Ya got a lot of mileage (bragging rights)

talking about your $ 3,000 deal. --184.53.x.xx




Paid $3K / Sold for $37K (by elliot [RI]) Posted on: Jun 12, 2019 1:30 PM
Message:

some of us parted $30K with no educational value, absolutely nothing to show for it .. You came out in one piece.. I will make that kind of "mistakes" all day long --108.34.xxx.xx




Paid $3K / Sold for $37K (by Roy [AL]) Posted on: Jun 12, 2019 1:57 PM
Message:

I have 17 rental houses left now. I have 5 houses that are worth at least $60,000 each but that is only because the Class C neighborhoods are better. The house I just sold was in a Class C hood that was slowly sliding into a Class D hood. I saw the writing on the wall when someone bought the vacant lot across the street and moved a junky looking MH on it. This is what southern rednecks do.

@ Beth: Not all of my houses were bought at $5K. $5K-$15K would be my average purchase price over the last 13 years. The most I have ever paid was $35K but that house was in MINT condition and located in a good quality Class C+ hood.

@ RB: I hope I am not bragging here because there is nothing to brag about. I had a ton of Sweat Equity in this house which is NOT reflected in the $35K selling price. This house listed at $44,900 and even if it had sold at the list price I would have still come up short on the personal time I spent trying my best to make a 'silk purse out of a sow's ear'. --68.63.xxx.xxx




Paid $3K / Sold for $37K (by GKARL [PA]) Posted on: Jun 12, 2019 2:07 PM
Message:

I'd say you made out well considering. You're right though, cheap is not always a good deal. --172.58.xxx.xxx




Paid $3K / Sold for $37K (by Live The Dream [AZ]) Posted on: Jun 12, 2019 4:22 PM
Message:

Seems like you did ok. So listen have I got an investment deal for you! Just send me $25,000 and it will cover my cruise trip around the world and when I get back I'll tell you all about it and you won't even have to leave the comfort of your home! Such a deal! :D --47.216.xx.xxx




Paid $3K / Sold for $37K (by Deanna [TX]) Posted on: Jun 12, 2019 5:35 PM
Message:

LTD, you sound like you need someone to wrangle your luggage and take photos for you! I usually charge $20/hr + expenses, but for you, I'd be happy to volunteer for $15/hr + expenses! Free photo album included! ;) --96.46.xxx.xx




Paid $3K / Sold for $37K (by Sean [OR]) Posted on: Jun 12, 2019 6:02 PM
Message:

$3k purchase price?!!!

I want to see a picture of a house that cheap.

Good job! --107.190.xxx.xx




Paid $3K / Sold for $37K (by Roy [AL]) Posted on: Jun 12, 2019 9:43 PM
Message:

Sean,

There is problem with my Mr. LL picture page. It will not allow me to Login. I do have a photo to show you.

Remember the house that Uncle Jed lived in when he was 'shooting at some food and up came some bubbling crude'? I paid $3K for that same house but the only crude I ever found were called 'tenants'. --68.63.xxx.xxx




Paid $3K / Sold for $37K (by Live The Dream [AZ]) Posted on: Jun 12, 2019 10:21 PM
Message:

LOL - Deanna, thanks but we have a selfie stick. Just gotta watch that last steppppppp...

--47.216.xx.xxx




Paid $3K / Sold for $37K (by BRAD 20,000 [IN]) Posted on: Jun 17, 2019 1:19 AM
Message:

GO Roy!

$37500 on a $21000 investment. Nice.

Taxes are always with us.

Time to learn how to do this inside your Roth 401K where there are NO taxes to pay!

BRAD --73.102.xxx.xxx




Paid $3K / Sold for $37K (by WMH [NC]) Posted on: Jun 17, 2019 7:51 AM
Message:

Brad, no way could Roy have done this inside a 401k: his sweat equity alone would have negated the deal, wouldn't it? --50.82.xxx.xx




Paid $3K / Sold for $37K (by mike [CA]) Posted on: Jun 17, 2019 2:22 PM
Message:

maybe not the juiciest of plums, but a plum just the same. my pops once told me "you never go broke taking profits".

on those deals i just tell folks "at least it kept me off the streets" --76.176.xxx.xxx



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