My Scheme
I would just like to say, the reason why this blog came to a screeching halt was because I gave up using the internet for pleasure during lent. This included reading blogs, etc. Since I can only read on Sundays, I have not had a sufficient time to really post anything...so there...
Anyway, here is my scheme. I want to buy an apartment. Well, actually, I just want to own our own place... This whole paying rent thing is rather a scam, don't you think? I do not like paying money to increase someone else's equity. So, I propose that several like-minded people get together and buy an apartment complex together. We could either get some kind of group ownership thing, or find a way to split up the deed of the building. There are a good number of small apartment complexes available in Whittier/La Habra/Fullerton area. In the little research I have put into it, it looks like if one gets a 8-12 unit, one could get about 150000-190000 per unit. The smaller the complex, the higher per-unit costs it gets. I have seen several four plexes for around $900,000. Just to get a bearing on the cost of this: A 30 year, $170k loan, at 6% runs just about $1000/month (plus taxes and insurance). There would also be up-keep expenses. But, these apartments are almost always 2 bedroom, some of the smaller ones even look like houses and are in residential neighborhoods. When you outgrow it, you can sell it, or keep it and rent it out and make money (in a couple years rent will definitely increase).
Major problems I could see:
finding a location that would make all the buyers happy
getting together a reasonable downpayment(since we would need to be dealing with commercial property)
finding a lender who would do such an unconventional loan at a decent percentage
finding out the legal details
splitting upkeep costs, etc.
However, if I could find 4-5 other people seriously interested, I would be willing to pursue whether these could be over come. If the complex had an extra apartment or two, we could rent them out to Biola students and help cover costs that way as well...Anyone interested? Seriously, let me know if you are. We are going to be in the area for a while, and this looks like one reasonable way to get out of tenentdom sooner rather than later.
Anyway, just a crazy thought I've been having recently...
posted by Secretwallaby @ 10:59 PM
7 comments
7 Comments:
Definitely an interesting idea. I can help with the research, well, as much as I can do in Illinois. Depending on what turns up I might commit too.
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We would DEFINITELY be interested. Lemme know!
Very interested. I am obessed with real estate investing. Catherine and I will take up residence and turn it into the great American Novel, or at least a darn good sitcom (her idea).
It's fate! I know that Dustin and Werner are dying to live in the same place as Katie, me, Caryn, and Catherine all together.
This is going to make a crazy good tv show: Computer Geek and Philosopher gnerating facts; the middle school teacher, the dog trianer and their baby Ryan; Doug and his string of ladies; more of D&K's friends (Libby and Jon?, The MKs? Torrey People?) and Catherine and I and our stream of guys. Emmy here we come.
Maybe you could ask Grampa McVittie for help, since that's what he does.
Because you don't like paying rent to increase someone else's equity, don't you think it'd somewhat hypocritical to buy an apartment and then rent it out to someone else if you didn't want to live there anymore? But then again...who's in any place to point out hypocrtical things.
I personally would not be interested in this because I probably wouldn't stay in the place for very long. That's just me, and maybe my view would change if I wasn't a single guy with nothing tying me down to one spot.
Good luck if you seriously pursue this, though.
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