New Investment Property

[b116757]

My oldest boy graduated college in Dec with a bachelors of science in automotive tech with an emphasis in diesel. I offered to pay off his students loans he sent me a link to a property in town he would rather buy than have me pay off his loans. It’s a small 900sqft house with 30’x96’x10’ shop with six overhead doors on about an acre with 6’ chain link fence around nearly the entire lot. Brick/block House is very rough will need a bit of work for sure roof is shot inside is rough needs a new electrical service. Shop was full of auto parts old guy bought cheap cars and stripped them down sold any parts he could and scrapped the rest. So the building was full of car parts. We have taken out 4 trailer loads of scrap one trailer load of engine blocks 9 of them, transmissions 7 of them and enough heads for about 15 engines. One load of tires/wheels. One load of car doors and about 42 drive shafts. Four loads of just trash. We still have 6 rear axles to move. We have moved the good stuff to one of the farm barns for long term storage. He plans to either run a shop out of the building or just rent the house and shop out as an investment property. He already has a job with the UP railway starting March 23rd so he will likely rent it out. They where asking $125k we bought it for $90k mostly do to the rough nature of the house and the kids lived out of state/area and didn’t want to attempt to clean out the shop so it was sold with all the personal property as is. It came with three trailers a 1999 GMC 2500 and two gantry cranes also. We have been very busy cleaning up over there the last three weeks. Sort of a before and after photo here the shops not empty yet but it’s much better than when we started.

 

[Telemark]

Nice! With a little time and effort, you should have positive equity in it pretty soon. If he lives in it for a few years, he wouldn't have to pay taxes on it if he decides to sell. I see a lot of cars online for sale at almost giveaway prices because they don't run. He could have a side business flipping cars he fixes up.

It's really nice as a person his age to not have a mortgage.

 

[BC Buck]

I would love to have a place like that. Need pics of house. Do they have access to 3 phase service?

 

[b116757]

I gave him the 20% down payment so he has a payment on $72k cleaned up and fixed up I’d say the place would sell for $140k-$150k his student loans totaled about $27k so I’m into it for about $20k so far I’ll flip the bill for most of the materials to fetch up the house getting my portion back to around his student loan debt of $27k. It a good deal for him with and real learning experience. He told me one day after he had signed contract that he was freaking out a little bit to much adulting. I had told him when he put in the offer not everyone can grab the tiger by the tail and he looked at me strangely when I had said that. After his comment about freaking out I elaborated about my grabbing the tiger by the tail comment. When my brother and I started buying properties in our early 20’s my brother told me one day “I feel like I’ve got a tiger by the tail but all I can do is hold on tight so the tiger can’t eat me” my boy then understood my comment because he was feeling it.

 

[b116757]

I would love to have a place like that. Need pics of house. Do they have access to 3 phase service?

I’m not sure on three phase but the shop does need a meter service. Old man that owned the place ran an extension cord from the house to shop I’ve been told I believe it because the shop wiring if you call it that is half ass at the best.