January 2010

In this episode we attend a real estate auction where we are interested in a 4 bedroom 1 bath single family residential property.

Runtime: 19:55
A quick rundown of the episode:

• Welcome and info on how we find properties that are being auctioned
  • LoopNet
  • Auction Zip
  • Williams & Williams Auctions
• We attend the auction of 4 investment properties each being sold absolute
• We break down our investment criteria in detail
• BOOB Update – Book reports
• New BOOB Challenge – Geocache
• Chalk Talk – Virtual Assistant Referrals
• Next Episode – We interview Adam Baker of ManVsDebt

Watch. Learn. Comment.

Numbers Breakdown:

$72,000 – Loan to Value (LTV) – House must appraise for amount
$54,000 – Loan Amount – 75% of Appraisal ($72,000) – Instant Equity
$14,000 – 10% Cash Reserves, Closing Fees, Company Expenses
$40,000 – Total for Renovations and Purchase Price
$17,500 – Improvement/Renovations
$22,500 – Purchase Price

Monthly Rental Breakdown:

$450 – Principal and Interest payment on 20-year term at 7.25%
$150 – Taxes
$ 50 – Insurance
$600 – Monthly Total
$150 – Minimum Positive Monthly Cash Flow
$750 – Monthly Rent Needed

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