Investing
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Foreclosure: 3291 Barrington Drive, Harrisonburg |
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 Property To Be Sold: 3291 Barrington Drive, HarrisonburgDate/Time of Sale: Thursday, February 21, 2008 at 11:30 a.m. Original Principal Amount of Deed of Trust: $262,000 Assessed Value: $369,000 Currently For Sale: $379,900 (more details here) Deposit: $26,000 or 10% of the sale price For Information Contact: Glasser & Glasser, P.L.C. Crown Center Building, Suite 600 580 East main Street Norfolk, VA 23510 Fiel No. 61932 757-321-6465 (call between 10a and 12p) Per the Daily News Record, February 8, 2008 | |
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Foreclosure: 202 Kensington Drive, Elkton |
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Property To Be Sold: 202 Kensington Drive, Elkton Date/Time of Sale: Tuesday, February 19, 2008 at 9:00 a.m. Original Principal Amount of Deed of Trust: $292,500 Deposit: $12,000 or 10% of the sale price For Information Contact: Draper & Goldberg, PLLC 803 Sycolin Road Leesburg, VA 20175 703-777-2448 http://www.drapgold.com Per the Daily News Record, February 8, 2008 | |
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Foreclosure: 2388 Hopkins Drive, McGaheysville |
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Property To Be Sold: 2388 Hopkins Drive, McGaheysville Date/Time of Sale: Wednesday, February 27, 2008 at 9:45 a.m. Original Principal Amount of Deed of Trust: $450,000 Assessed Value: $338,300 Terms of Sale: A deposit of $20,000.00, or 10% of the sales price, whichever is lower, cash or certified check, will be required at the time of sale with settlement within fifteen (15) days from the date of sale. For Information Contact: Samuel I. White, P.C. 5040 Corporate Woods Drive, Suite 120 Virginia Beach, VA 23462 757-457-1460 Call between 9:00 a.m. and 11:30 a.m. 0512-08/CONV Per the Daily News Record, February 4, 2008 | |
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Foreclosure: 9212 Rawley Pike, Hinton |
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Property To Be Sold: 9212 Rawley Pike, Hinton Date/Time of Sale: Friday, February 22, 2008 at 9:00 a.m. Original Principal Amount of Deed of Trust: $179,100 Assessed Value: $180,700 Terms of Sale: A deposit in the form of certified funds in the amount of $15,000.00 or 10% of the successful bid, whichever is lower, is required of any bidder at the time of sale. Closing within fifteen (15) days of sale. For Information Contact: Stephen B. Wood Friedman & MacFadyen, P.A. 1601 Rolling Hills Drive, Ste. 125 Richmond, VA 23229 (804) 288-0088 Ref #213213 Per the Daily News Record, January 30, 2008 | |
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Foreclosure: 388 Ridge Court, Timberville |
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 Property To Be Sold: 388 Ridge Court, TimbervilleDate/Time of Sale: Monday, February 11, 2008 at 10:00 a.m. Original Principal Amount of Deed of Trust: $125,600 Assessed Value: $121,100 Most Recent Sale: $157,000 (1/6/2006) This property is currently on the market for $169,000. Terms of Sale: A bidder's deposit of $12,500.00 or 10% of the sale price, whichever is lower, will be required in cash, certified or cashier's check. Settlement within fifteen (15) days of sale, otherwise Trustees may forfeit deposit. For Information Contact: Professional Foreclosure Corporation of Virginia C/O Shapiro & Burson, LLP 13135 Lee Jackson Highway, Suite 201 Fairfax, VA 22033 703-449-5800 Per the Daily News Record, January 30, 2008 | |
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Buy vs. Rent --- Harrisonburg Townhouse on Vine Street |
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 There are many perspectives on whether it is better to buy or rent --- let's pick one property type, in one imaginary buy vs. rent scenario, and start with a monthly cash flow perspective . . .The townhome pictured to the right, located at 904 Vine Street in Harrisonburg, is listed for sale with a price of $149,000. Since homes sell on average at 97% of their asking price, we'll assume that it may sell for around $144,530. We'll also assume that one might be able to rent it for around $825 per month.  If we just consider monthly cash flow, we will discover that it takes a $17,000 down payment (plus closing costs) to keep the monthly mortgage payment in line with the projected $825 per month rental payment. Many buyers of townhomes in this price range do not have $17,000 to put into the transaction --- some only have the closing costs ($3,000 - $4,500). Let's take that angle --- which increases the monthly mortgage cost to $922 per month, or $97 extra each month. So why might someone consider purchasing this townhome rather than renting it? Let's assume, for a moment, that the conflicted buyer-tenant will stay in the townhome for three years. Here's the comparison: 1. The buyer pays $3,492 extra in monthly housing costs ($97 * 36 months) 2. The buyer pays down their mortgage $6,176 during the three years. 3. The buyer pays $23,366 of interest, which saves them approximately $5,841 on taxes (assuming 25% bracket). So far, the buyer is ahead of the tenant by $8,525 by the third year. If we then include a modest 3% per year appreciation, the buyer has gained an additional $13,402. (They don't get this until they sell). Thus, by buying, rather than renting, the net gain comes out to be: - $4,000 purchase closing costs - $3,492 extra monthly housing costs + $6,176 principal reduction + $5,841 tax savings + $13,402 appreciation --------------------------------------------------- + $17,927 net gain after three years One important note --- if the buyer then decides to sell after three years, some portion of their gain will be expended in seller closing costs. | |
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How and Why To Buy Property At A Foreclosure Sale |
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 Buying a property at a foreclosure sale (a.k.a. trustee sale) can be a great opportunity to acquire a property under market value, but there are risks that accompany any potential for reward.The Risks:
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Foreclosure: 338 Louisa Street, Broadway |
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Property To Be Sold: 338 Louisa Street, Broadway Date/Time of Sale: Wednesday, February 6, 2008 at 3:00 p.m. Original Principal Amount of Deed of Trust: $180,400 Assessed Value: $193,800 Most Recent Sale: $190,000 (1/20/2005) Terms of Sale: A deposit of $15,000.00, or 10% of the sales price, whichever is lower, cash or certified check, will be required at the time of sale with settlement within fifteen (15) days from the date of sale. For Information Contact: Samuel I. White, P.C. 5040 Corporate Woods Drive, Suite 120 Virginia Beach, Virginia 23462 757-457-1460 (call between 9:00 a.m. and 11:30 a.m.) Per the Daily News Record, January 28, 2008 | |
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Foreclosure: 3210 Danbury Court, Harrisonburg |
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 Property To Be Sold: 3210 Danbury Court, HarrisonburgDate/Time of Sale: Wednesday, February 6, 2008 at 3:00 p.m. Original Principal Amount of Deed of Trust: $460,800 Assessed Value: $394,100 Most Recent Sale: $512,000 (11/17/2006) Terms of Sale: Cash: A deposit of $20,000.00, or 10% of the sales price, whichever is lower, cash or certified check, will be required at the time of sale with settlement within fifteen (15) days from the date of sale. For Information Contact: Samuel I. White, P.C. 5040 Corporate Woods Drive, Suite 120 Virginia Beach, Virginia 23462 757-457-1460 (call between 9:00 a.m. and 11:30 a.m.) Per the Daily News Record, January 28, 2008 | |
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Foreclosure: 16958 Sundance Forest Road, Broadway |
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 Property To Be Sold: 16958 Sundance Forest Road, BroadwayDate/Time of Sale: Monday, February 11, 2008 at 10:00 a.m. Original Principal Amount of Deed of Trust: $154,000 Assessed Value: $101,500 Most Recent Sale: $154,000 (8/17/2006) Terms of Sale: All Cash. A bidder's deposit of $15,000.00 or 10% of the sale price, whichever is lower, will be required in cash, certified or cashier's check. Settlement within fifteen (15) days of sale, otherwise Trustees may forfeit deposit. For Information Contact: Professional Foreclosure Corporation of America C/O Shapiro & Burson, LLP 236 Clearfield Avenue, Ste 215 VIrginia Beach, VA 23462 757-687-8777 Per the Daily News Record, January 25, 2008 | |
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"The Fed" Lowers Rates Yet Again! |
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Yesterday "The Fed," or The Federal Reserve, lowered the federal funds rate by 0.75% --- from 4.25% down to 3.50%. Generally speaking, reducing this rate leads to more economic activity, as it lowers the interest rate for money loaned between banks overnight.  What will it mean for real estate in Harrisonburg and Rockingham County? First, it is important to realize that a 0.75% decrease in the federal funds rate will not equate to a 0.75% reduction in interest rates that home buyers will obtain for their real estate purchases. However -- for most home equity lines, homeowners will see a reduction in their payment as the prime rate decreases. | |
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Foreclosure: 2410 Reservoir Street, Harrisonburg |
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 Property To Be Sold: 2410 Reservoir Street, HarrisonburgDate/Time of Sale: Monday, February 4, 2008 at 10:00 a.m. Original Principal Amount of Deed of Trust: $93,800 Assessed Value: $152,800 Terms of Sale: A bidder's deposit of $9,300.00 or 10% of the sale price, whichever is lower, will be required in cash, certified or cashier's check. Settlement within fifteen (15) days of sale, otherwise Trustees may forfeit deposit. For Information Contact: Professional Foreclosure Corporation of America C/O Shapiro & Burson, LLP 236 Clearfield Avenue, Ste 215 VIrginia Beach, VA 23462 757-687-8777 Per the Daily News Record, January 21, 2008 | |
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Foreclosure: 332 Chestnut Oak Lane, Penn Laird |
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Property To Be Sold: 332 Chestnut Oak Lane, Penn Laird Date/Time of Sale: Wednesday, January 23, 2008 at 11:30 a.m. Original Principal Amount of Deed of Trust: $625,000 Assessed Value: $825,600 Terms of Sale: A deposit of $62,500.00 or 10% of the sales price, whichever is lower, (in certified funds or cash of not more than $10,000.00) will be required of the successful bidder at time of sale. Settlement is to be made within 15 days. For Information Contact: Glasser and Glasser, P.L.C. and/or Atlantic Trust Services, L.L.C., Substitute Trustees, Crown Center Building, Suite 600, 580 East Main Street Norfolk, VA 23510, File No. 61185 (757) 321-6465 Call between 10:00 a.m. and 12:00 p.m. Per the Daily News Record, January 11, 2008 | |
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Foreclosure: 2991 Taylor Spring Lane, Harrisonburg |
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 Property To Be Sold: 2991 Taylor Spring Lane, HarrisonburgDate/Time of Sale: January 15, 2008 at 11:00 a.m. Terms of Sale: A bidder's deposit of $13,200.00, cash or certified check, will be required at the time of sale with the settlement and full payment of the purchase price within (15) fifteen days from the date of the sale. For Information Contact: Nectar Projects, Inc 104 N. Bailey Ln. Purcellville, VA 20132 540-751-1267 Call between 8:00 a.m. and 11:00 a.m. http://www.nectarp.com Original Principal Amount of Deed of Trust: $135,000 Assessed Value: $197,900 Comparable Properties For Sale: http://taylor_springs.scottprogers.com Per the Daily News Record, January 2, 2008 | |
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Foreclosure: 2437 Mosby Court, Harrisonburg |
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Property To Be Sold: 2437 Mosby Court, Harrisonburg, VA Date/Time of Sale: January 3, 2008 at 3:00 p.m. Terms of Sale: A deposit of $10,000.00, or 10% of the sales price, whichever is lower, cash or certified check, will be required at the time of sale with settlement within fifteen (15) days from the date of sale. For Information Contact: Samuel I. White, P.C. (41925-07/CONV) 209 Business Park Drive Virginia Beach, Virginia 23462 (757) 457-1460 Call between 9:00 a.m. and 11:00 a.m. Original Principal Amount of Deed of Trust: $100,400 2008 Assessment: $125,800 Comparable Properties For Sale: http://millwood_condominium.scottprogers.com Per the Daily News Record, December 29, 2007 | |
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Harrisonburg Rental Market In December |
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 Many tenants look for new rental property during the summer months --- whether because of a school transition, or otherwise. Thus, many speculate that it is, or would be, much harder to rent an investment property during the winter months. Not this week!?!One of my investor clients closed on two Harrisonburg townhouses a few weeks ago, both of which were vacant at closing. Thus, he has been in tenant acquisition mode for the past few weeks, and he and I have both been surprised at the high level of interest. In the past 48 hours, there have been 11 separate inquiries about one of the townhouses (the other has now been rented). If you currently own investment property, and have a tenant leaving mid-winter, it may not be as much of a concern as you would think! | |
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Buying College Student Rental Property |
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 Lots of people consider buying investment properties -- and in Harrisonburg many people start by investigating college housing. Some don't end up buying, and here is why . . .Limited Choices Most of the student housing that exists in Harrisonburg today is corporately owned --- each unit isn't owned by one or more people, the entire complex is owned by a corporation. Thus, if we look just at housing for JMU students, where individual housing units can be purchased, the choices quickly become boiled down to:
Limited Monthly Cash Flow Many investors aim to at least break even on a monthly basis -- they don't want to be losing money each month that they own an investment property. With this assumption, let's take a look at how the cash flow might work on a monthly basis for 1346-D Hunters Road, one example of a Hunters Ridge condominium for sale as of 12/20/2007. Price of $105k, 80% financed at 7.25%, self-managed Rental Income + $770 Mortgage (Principal & Interest) - $573 Condo Association Fee - $155 Real Estate Taxes - $45 Insurance - $35 Monthly Profit - $38 (a small loss) However, many potential investors call and indicate that they only want to use a 10% down payment, and that they plan to have a property management company take care of the property. Things get worse . . . Price of $105k, 90% financed at 7.25%, property management Rental Income + $770 Mortgage (Principal & Interest) - $645 Condo Association Fee - $155 Property Management - $77 Real Estate Taxes - $45 Insurance - $35 Monthly Profit - $225 (a big loss) Then Why??? With these monthly losses, you might wonder why someone would buy an investment property. There are a lot of possible reasons why someone might buy, or why the numbers might work differently for them:
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Does Remodeling Pay Off? |
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 Each year, Realtor Magazine partners with Remodeling Magazine to deliver a Remodeling Cost vs. Value Report which analyzes the average cost recouped for a variety of home improvement projects. The bottom line of this year's report seems to be that the best place to invest your remodeling dollars is on exterior improvements. However, the thing to notice first is that none of the projects are shown to return the total amount of money invested. As a result, I recommend that my clients carefully consider engaging in these sorts of projects for re-sale purposes. Unless you will experience some interim enjoyment from the upgrade, it is likely not worth investing the money in the project.Here's an overview of the top percentage returns on projects in the South-Atlantic region --- which includes Virginia:
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
Licensed in the
Commonwealth of Virginia
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