Profiting From Rent To Own Situations

I don’t know about you, but I’m a nut for digging up good profitable income streams I can build without putting in too much time or effort.

In this post I want to tell you about one of my recent favorites, which is taking advantage of great rent to own real estate deals to buy property with very little money down, and turn that into cash in your pocket every month.

It’s surprisingly easy to do, if you know how to find the right deals and a seller who is willing to work with you on the terms of the investment.

With the right seller, you can use a rent to own structure to give you time to buy in to the property, and then refinance the purchase with a bank, once you’ve built up a little equity in the house.

real estate profits

Let me give you an example of a deal I did recently.

Last year, I was browsing around on Homeowner’s Guides, and I found this great rent to buy house in Charlottesville, Virginia, and snapped it up. I ended up paying only $5,000 down as a deposit, and convinced the owner to finance the rest of the purchase.

For the next 12 months I “rented” the property from him, but during that time 90% of my rent payments were actually going towards the price of the house, so that 10% difference is just a small premium to build equity in the property.

At the end of the year, I then had 20% equity built up in the house, and could use that equity to qualify for a bank loan and traditional mortgage at a good rate, without needing to pay the extra PMI insurance that is commonly required when you don’t own 20% of the house itself.

Meanwhile, i’d spent that year living part time in the property, and renting out one of the rooms. At the end of that first year, I then found a second person to rent out the other bedroom, and now I have a stable rental income stream coming in from the property, which more than covers the mortgage.

On an average month (if there are no major repairs or anything to be done), I make $560 after paying the mortgage. That means I make $560 on a deposit of just $5,000!!!

That’s a pretty incredible return for not very much money, and while it isn’t enough to let me retire quite yet, it’s definitely a step on the path. I just need to find a few more deals like this and I’ll be good to go!

Building a Home on Wheels

Some of the coolest cars I’ve seen recently haven’t really been cars at all. SInce I’m normally struck primarily with speed, it’s a shock that I was so taken by some of the innovative designs that creative individuals (yes, mostly hippies and hipsters, so not exactly my kind of people, haha) are coming up with.

Specifically, I’m talking about tiny home, and especially the ones that are built on wheels.

What Tiny Homes on Wheels Are

tiny home in a busIf you’re like me, you probably hadn’t heard much about this concept until recently. Apparently, there’s been this tiny house movement that has been gaining in popularity, as people look to find cheap ways to live that also help them have less of a carbon footprint.

Given the engines I usually build, you probably know I don’t think too much about carbon footprints on daily basis!

At any rate, these people are building small houses, known as tiny homes, and many of them are built on top of trailers that can be moved easily (with a pickup truck, for instance), or within older, larger vehicles, like revamped 18-wheelers or school buses.

This is a pretty cool idea, so thought I’d share it with you.

How To Build It

When a person is beginning to prepare for his tiny house build, he first digs through one of the many design ideas or books out there on the topic. He’s looking for inspiration, but let it be known that no two tiny homes are exactly alike.

These aren’t your mass-manufactured mobile homes that are shipped off to an RV park, but are generally creative spaces for middle class, or even wealthy young individuals and couples.

Some of the best design ideas include aspects of the environment they’re living in. For example, many West Coast homes don’t have a need for extra insulation since they have mild winters, or might take in a large open view of a secluded property instead of walling off all aspects of the house.

This one is actually one of my favorites, because it looks like a normal house, just…smaller.

Check out more concepts at hgtv.com.

The Best Electric Cars

Hybrids

hybrid carThough they’re not truly electric, hybrid cars have won the popularity contest every year for the last decade whenever anyone talks about electric cars.

The main reason? They’re practical, since they run half on a gas-powered engine and half on electric power generated from the gas-engine itself, these cars cater to the common fear that electric cars will leave you stranded and out of power. With hybrids that’s never the case! Just fill up at your local gas station.

But, that doesn’t even come close to putting them at the top of our list!

Electric and Rechargeable

rechargeable carNext up are electric and rechargeable cars. These cars run 100% on battery power, which means they’re not releasing any carbon emissions while you drive.

The downside is that most of the technology still only allows for you to drive around your own city, since you would need to spend time recharging before taking on any long drive, and battery replacement centers aren’t exactly common…at least not yet.

It’s also important to keep in mind that while these cars bill themselves as “green,” they’re really only as eco-friendly as the grid you use to charge them with. That could mean you’re getting 100% sustainable energy from solar or wind, or gas or coal powered energy, depending on your power grid situation in your city.

Cars with Solar Panels

car solar panel installationAlthough we’re currently limited to having only larger cars and RVs with solar panels that can help to recharge batteries or generators when the car is stopped, I don’t think we’re too far away from adapting this technology to apply to engine batteries as well!

That means that we could potentially develop DIY solar panels for our own cars, and skip filling the tank altogether! For more information on how you might be able to adapt this idea for your own car, check out solarpanelinstallationguide.org.

And The Winner Is…

Finally we’ve gotten to the winner of it all. It may come as no surprise to any you, in part because you might know we’re huge fans of speedy cars, and in part because they’re the elephant in the room no one has mentioned yet, but our pick for the top electric cars comes to…Tesla!

These guys are truly innovating in the field, with cars that can travel significantly faster and farther on a single battery, and recharge or replace the battery in a shorter period of time, than anything else available on the market.

Right now, Tesla still has the luxury market, but we expect they’ll be releasing some less expensive models sometime in the next couple of years.

Watch Elon Musk, Tesla’s founder, as he unveils the latest model!

Tips for Engine Hobbyists

diy engineAre you a hobby engine builder? If so, you know just how difficult it can be to sort out where all of your parts are coming from and how to put them together correctly (if you need helping sourcing parts, let us know!) but you also know that it can be extremely fun and challenging to take on projects and do them yourself.

Here are a few tips to keep in mind for your next project, or to help you pull off your current swing without a hitch!

Do It Yourself Cars

If you’re building a car, be sure you know what you’re getting yourself into before you begin. If you’re just starting out, I recommend you go with a car kit for hobbyists, which will help you get through many of the harder aspects of assembly, like molding doors and siding, and let you focus on putting together the engine, which, let’s face it, is why most of us got into this hobby in the first place!

While this is definitely one of our areas of expertise, there’s no way we could possibly go into enough detail in a single blog post. For starters, you might want to check out the how-to beginner’s guide from Popular Mechanics, which takes you through the basic steps you’ll need in order to be successful.

Do It Yourself Boats and Jetskis

If you’d rather stick to a watersport, you also have a difficult time ahead of you. Assembling a boat or jetski engine is no easy task, although the process is a lot simpler than trying to build a drag racer.

The main reason is that most marine engines are based on a simple diesel system that has fewer components, and doesn’t require you to have mechanisms to change gears and other more advanced techniques.

If you’re building a boat, you should also consider whether or not you want to do everything from scratch or, like the car example above, use a pre-fabricated kit to help you get started.

Though our primary focus is auto, we also usually carry everything you would need for most small metal boat kits. Click here to learn more if you’re interested.

Regardless of your project size and scope, the number 1 most important thing to keep in mind is to make sure you’re adequately prepared for every aspect of your project, which means knowing what you’re getting into, before you get into the midst of it! Safety should always be a top priority, and managing expectations and planning correctly goes a long way to making sure your project gets done the right way, with no hiccups along the way!

 

MSU Racing Car Expo 2015

Earlier this year MSU put on a totally spectacular show for all street rod fans.

Check out the video below for a tour of the expo and get a glimpse at some of the hot rod style street cars we pulled together for the event. In the video below you get to see what it’s like behind the wheel of some of these babies as we take them for a spin, and then get an up close and personal look at the cars themselves, with more information on what makes them street rod spectacular!

We’re planning on doing this show again in 2016, but are still looking for a date and location for the event! So for now, this will have to be a quick teaser for what’s to come!