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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (82245)	7/27/2007 5:13:20 PM
From: GraceZ	Respond to of 306849

Seems low maintenance too When we bought it back in '91 I called it the "vision test". It was such a wreck that I could use it to tell if various friends or family members lacked the ability to "see" what we saw by watching the horror on their faces as we gave them the tour. What is comical is that back in 1991 we had to put up more cash to buy that place than the guy who bought it from us a month ago. Back in 1991 the banks were closing the barn door (as they always do) after the cows were gone. The house was selling for $50k and residential mortgage rates were about 7%. They made us put down 15k and pay 8.5% as investors, so with closing costs we needed 20K in cash. Then they complained that the mortgage was so small! Well duh! The guy who bought it from us put down 7k and got 7k from us for closing, no income (his Dad co-signed because he's going to medical school) and borrowed more than the sale price, 282K, because he borrowed the FHA insurance premium. At the closing he realized that when he gets out of medical school in three years he'll be in debt to the tune of half a million or more with his student loans and mortgage combined. I sure wouldn't want to be him. The only good news is that he can rent out the other two bedrooms to other medical students for enough money that his share is still a lot less than he can rent a studio apartment in the same neighborhood. He may have to live in it forever...