Sunday, January 6, 2013

Chapter 84 Family Business

We bought another rent house in 1965. It was located north of us on High Vista Lane. It was a nice three-year-old 3 bedroom, 2 bath home. I paid $13,000 for it and rented it right away to a nice couple. We then bought another at 3420 Timberview-about a block away from the High Vista house. It also rented right away but it cost us $14,875.

I had a certain geographic area that I stayed within. It was bordered by Walnut Hill on the south, Marsh Lane on the East, Webb’s Chapel on the West and LBJ freeway on the north. Twice a week I would drive up and down each street looking for For Sale by Owner signs. I would stop and knock on the door and offer to buy their house if it met my criteria. The mortgage had to be assumable, the equity less than $3,000. and the payment low enough to give me a fifty dollar a month spread. The houses were all three bedroom, two bath houses and most all were built by Fox and Jacobs within the last five years. 

I bought about ten of these over the years with an average price of $18,000 giving us a cash flow of about $700 a month.  This was pretty good considering that it equaled my monthly salary from the telephone company at that time. Charlotte and all three kids would clean them up and get them ready to rent. Charlotte and Susie would clean the kitchen and the windows. Tom ran the rug shampoo machine and Chip was in charge of getting the yard in shape. Chip and Tom painted the walls and I did the ceilings

We still had our cows at the farm and I would go out several times during the week in the evening to check on them. I also bought a new Ford Pickup and a few more cows and a new bull. That gave us about 25 head then and they were all doing well. I was looking at my capitol expenditures for 1966 and they were as follows:

1966
2000
High Valley rent house 
$13,950
$175,000
High Lark Rent house    
$14,361
$180,000
Massey Tractor
$2500   
$8,500
Disc Harrow       
$200
 $1,000
10 Cows(Commercial)   
$3700
$12,000
1 Bull    
$450
$1500
Total
$35,161
$378,000
This really shows the affect of the inflation we have gone through since 1966 just 34 years. 

Photo of Massey Ferguson tractor found here.

Photo of Disc harrow found here

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