Posts Tagged ‘fixer upper houses’

Avoiding Pitfalls When Buying Fixer-Upper Houses

Wednesday, May 25th, 2011

Pitfalls to buying fixer-upper houses, such as broken plumbing systems, worn out electrical wiring, and cracked foundations can be avoided with the help of a professional inspector prior to purchasing a house. Once identified, these conditions can be laid before the seller, who must either fix the problems to the satisfaction of the buyer, or the buyer can pull out of the deal.

Of course, it takes hard work to find a house, make all of the repairs, and learn how to deal with tenants. If it were easy, everyone would be doing it. You’ll learn not to take life, or tenant problems, too seriously. Shakespeare said, “A light heart lives long.”

The good news is that you learn valuable technical and people management skills that are useful in many other aspects of your life. You are also rewarded with a feeling of satisfaction in your accomplishments, a stronger sense of financial security, and the peace of mind that accompanies it.

The Secret to Success (video)

Friday, January 21st, 2011

The secret to success in life and business (even the fixer upper house business), according to Napoleon Hll and Ralph Waldo Emerson, is to be persistant and to follow your intuition.

 

 Related Posts

Remove that Garbarge Disposal Now!

Hit a Holiday Home Run for Your Tenants

Wednesday, December 15th, 2010

Remember your tenants during the holidays with a gift card. This shows them that you are in it for more than the money.

When I was a Peace Corps Volunteer in Honduras, the people I worked with went out of their way to make me feel I welcome and cared for. I try to do the same with my tenants.

Be kind to your tenants and treat them the way you would like to be treated and they will return the favor by taking care of your property, and by providing you with financial security for years to come.

Joe Sabah, Get the Job You Really Want, and fixer upper houses

Monday, July 26th, 2010

In the book How to Get the Job you Really Want and Get Employers to Call You, author Joe Sabah says,

Are you willing to pay the price to have your life be the way you really want it? We all know there is a price to be paid for everything in life. If we stay in the same circumstances we are now it may cost us our life. Serious illness can be caused because of stress, the stress of being in a job we hate. Take the time to consider what price you are paying now for what you have in your life.

For me, the perfect job was buying fixer-upper houses and renting them out. It provided me the independence and financial security that I desired, and I could do it while still working my 8:00 to 5:00 job.

If you don’t like your job, if you are having your hours reduced, or if you lose your job altogether, it may be time to consider establishing a business that will provide you with some additional economic security.

How would you answer Joe Sabah’s question, “What price would you be willing to pay to have the life you really want?”

Welcome to my new ‘fixer upper and rental house’ blog home!

Friday, May 7th, 2010

Welcome to my new website.

Make yourself right at home. Pull up a chair, have a cup of coffee, and check out some of my articles, useful links, or previous posts. Hopefully, you’ll discover some useful investing information.

To keep you in the loop, I am developing some new resource materials to help you get started in the house fixer-upper and rental business.

First and foremost, I am putting the finishing touches on my new book entitled “Never Sell Your Home! How to turn your home into a rental house.” Watch this space for further developments.

Even with rising interest rates, now is still a good time for do-it-yourselfers to start a new income stream with a rental house or two. House prices are still at rock bottom lows, but before too long they will start moving up again.

The key is to find a good fixer-upper house in a location where people like to rent. It’s still the best way to start your own business, and establish some long-term economic security!

Sometimes going through tough economic times is just the push that we need to start on a new path.

When tough times hit, I like to reflect on Lincoln’s saying, “We can complain that the rose bushes have thorns, or we can rejoice that the thorn bushes have roses.”

Trouble with Bad Tenants? Use a month-to-month contract

Friday, October 16th, 2009


One of the best ways that I have found to protect yourself from bad tenants, and we all know that a few will always slip though our “infallible” screening process, is to use the month-to-month contract.

If you have a tenant that you need to get rid of, for whatever reason (and I can think of a lot of them, such as painting a picture of a human face on the side of an outside wall, but that’s a story for another whole post), take the easy road.

If they have signed a month-to-month contract, you just need to send them a form saying that you are canceling the contract and they must be out by end of the next month. You have to give them a full 30 days to move, maybe more if they pay on the first and you are in mid-month when you notify them. In that case you would give them 45 days to move, at the end of the following month.

But, no matter how you slice it, it sure beats going through an eviction process, particularly if they are inclined to fight it. And, why wouldn’t they fight it since they at this point they have probably developed aggravating us into a science.

So, if there is any doubt in you mind about whether your tenant will go to the tenant dark side at some point, play it safe and have them sign the month-to-month lease.

New Product Announcement

I am in the process of developing a audio Course entitled “Fixer Upper and Rental Business Starter Kit.”

The course will include 3 audio recordings, electronic copies of forms, a Workbook, and a copy of my book Fix em Up Rent em Out.

I will be providing extensive information to guide you through the process of starting your own business. I will show you the quickest way to reach your goals, and protect you from the pitfalls.

Want to claim a sense of security when the walls of financial security seem to be crumbling all around?

Then this course may be for you!

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MP3 of Interveiw with Sam Bushman on All Things Real Estate

Monday, June 1st, 2009

Here is my interview with Sam Bushman, on his great show Real Estate in Focus (KHQN 540 AM, Delta, UT), May 23, 2009.

http://www.arnaudio.com/rif/shows/rif20090523.mp3

Here is the promotional blurb from Sam’s site:

Real Estate In Focus 95
Saturday, May 23, 2009 10:46 AM
5/23/09 – Interview: Terry Sprouse Terry Sprouse buys fix-up houses, repairs them and rents them out in his spare time. He is author of the book “Fix ’em Up, Rent ’em Out: How to Start Your Own House Fix-Up and Rental Business in Your Spare Time.” This blog discusses aspects of buying, repairing and renting out fix-up houses. Practical advice from someone who does it every day. His web site is a how to blog. You can even ask him questions for free.iseswww.fixemuprentemout.com

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Breakdown of townhouse purchase costs

Friday, February 13th, 2009

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Here are the final numbers on the rental property that I purchased.

Price: $106,000
Interest rate: 5.125%
Term: 30 years
Down payment: $21,200
Principal & Interest: $457.37
Taxes & Insurance: $128.87
Total monthly payment: $586.24
Estimated rent: $770

The townhouse is 1100 sq.ft., 2 beds & 2 baths, washer, dryer, carport, and small back yard. It has a great central location and should rent easily. I have another property nearby that is very easy to rent.

It needs some cleanup and repair work in the kitchen, fire alarms, blinds in the windows, new toilet sets, etc. There is nothing big that we have to do to it. With my wife and kids pitching in, we should have it ready to go by the end of the weekend.

Here are a few more photos of the kitchen, the living room, and the back yard.



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Townhouse Offer Details & Presentation to Am. Businesswomen Assoc.

Friday, January 16th, 2009

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Update on Investment Property Purchase Offer

Last week I made an offer of $105,000 on a 1100 sq ft townhouse that was being offered in a range of $115,000 to $125,000.

I asked for sellers to pay 2% of the the value of the house to help with closing cost (about $2,000)(see my previous article about a key phrase to include in your purchase offer to reduce closing costs)

The sellers countered with an offer of $112,000. I sent a note to the sellers saying “in order for this to work for us as a rental property, we have to stay pretty close to our original offer.” And I replied that we wanted to stay at $105,000.

After a little more back-and-forth we finally settled on $106,000 and they paid the 2%.

Other townhouses in the complex rent for $775 and my monthly mortgages payments should come in below $600 per month.

Presentation to American Businesswomen Association

Last Tuesday I made a presentation to the ABA about how I got started in the house fixer upper business. I’m trying to get out a little more to make presentations to various groups to promote my book.

It was really a warm and friendly group. They treated me to dinner and asked a lot good questions about the fixer-upper business, and they purchased many copies of my book.

Info on Terry’s Book

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"Fix em Up, Rent em Out" Featured in Newspaper Article

Friday, December 5th, 2008

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I was recently interviewed by the Arizona Daily Star and responded to a variety of questions related to my house fixer-upper business, such as:

Why did you write the book?;
How did you get into the fixer-upper business?;
Can you give away one secret of success?;

as well as several other questions that inquiring minds want to know the answers to.

Here is the complete interview, entitled “UA researcher fixes up houses on the side, writes about it.”

See also:

For yet another newspaper interview that I did see: Fixer Upper Business Highlighted in Newspaper Article.

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