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A 14-year-old buys house, rents it out

~ BunnyliciouS ~~ BunnyliciouS ~ MumOregonPosts: 26,309Friend of Soompi

SUPERSTAR

edited March 2012 in current events
This 14-Year-Old Girl Just Bought A House In Florida

willow.jpg

Meet Willow Tufano, age 14: Lady Gaga fan, animal lover, landlord.

In 2005, when Willow was 7, the housing market was booming. Home prices in some Florida neighborhoods nearly doubled from one month to the next. Her family moved into a big house; her mom became a real estate agent.

But as Willow moved from childhood to adolescence, the market turned, and the neighborhood emptied out. "Everyone is getting foreclosed on here," she says.

After the collapse, Willow's mom started working with investors who wanted to bid on cheap, foreclosed homes. Sometimes Willow tagged along.


One day, she went to a house that an investor wanted to flip. "It was filled with all kinds of stuff!" Willow says. "I was like, 'I can sell this stuff if he'd want to let me have it.' "

That was fine with the investor. So Willow sold the furniture and appliances from the house on Craigslist. She did the same thing with a bunch more houses. After a while, she was clearing about $500 a month, and saving a lot of it.

One day, Willow's mom, Shannon, saw a two-bedroom, concrete-block home on auction for $12,000 — down from $100,000 at the peak of the bubble. Shannon was telling her husband about the house, when Willow piped up.

"I was like, 'What if I bought a house? That would be crazy,' " Willow says.

Willow wound up splitting the house with her mom. Willow plans to buy her mom out in the next few years, and put her name on the title when she turns 18.

The place was a mess when they bought it — "like there was a riot or something," Willow says.

They cleaned it up and rented it out to a young couple for $700 a month.

As I was working on this story, I kept thinking that when a 14-year-old kid can buy a house, the market must have hit bottom. I kept saying this to Willow, and she'd sort of vaguely nod.

But it's hard for Willow to see herself as symbolic of anything. To a 14-year-old kid in Florida, the housing collapse is basically the only world she's known. It's the landscape. It's a Craigslist hobby.

She's thinking she may save up for a second home.

willowhouse.jpg
Willow and her tenants, in front of the house Willow bought with her mother.

Credit: http://www.npr.org/blogs/money/2012/03/09/148218539/this-14-year-old-girl-just-bought-a-house-in-florida?ps=cprs



Any young soompier here wants to follow her steps? =-3

katemonpupluvgurlfabrications.superhumanchichi1minute1second
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Replies

  • Poop-Shoop-A-LoopPoop-Shoop-A-Loop ^ xoxo esoteric. <3 Posts: 5,510Friend of Soompi
    holy moly haha.
    i wonder if the people who are letting her sell the furniture in the foreclosed homes are gonna let her continue to do that now? maybe they'll want to do it for themself lol. iono why they didn't. thats like getting some of your money back after you buy the foreclosed homes.

    $12,000 for a home. omg thats only as much as a car. the market reallyy must have hit rock bottom.
    I, Poop-Shoop-A-Loop, are King of the [stupid people] world [which does not exist].
    [ theSHOP ]
    .tumblr // redballoon
    Y G F A M I L Y : O N E LV E
    superhumanchichiblush
  • HERMITHERMIT Posts: 10,531Friend of Soompi

    EXALTED ONE

    Poop-Shoop-A-Loop wrote on 20 March 2012 - 03:34 PM:

    $12,000 for a home. omg thats only as much as a car.  the market reallyy must have hit rock bottom.

    No kidding.  My car costs more than that and I'm living in it.  I should move my Richard Simmons to Florida.  Maybe trade in my wheels for a nice double-wide.

    superhumanchichi
  • TuffcoreTuffcore Karmic RedemptionPosts: 5,204Member

    IDOL

    Rented $700 a month?
    That's $8,400 a year which is 70% ROI in the first year.
    WTF, these numbers are unreal.

    Why didn't that couple just buy the house for $12,000 themselves instead of renting for $700 a month?
    Pain is temporary
    Glory is forever
    superhumanchichiblush
  • monkeyinabarrelmonkeyinabarrel Posts: 1,371Member
    Tuffcore wrote on 20 March 2012 - 07:34 PM:

    Rented $700 a month?
    That's $8,400 a year which is 70% ROI in the first year.
    WTF, these numbers are unreal.

    Why didn't that couple just buy the house for $12,000 themselves instead of renting for $700 a month?

    Maybe they're in there for a few months? I've had several neighbors in and out of my life because tenants stayed at a house next door at the best 1 year
  • ronniexieronniexie Posts: 113Member
    wtff? Even i can afford that.. i got 16k right now and im unemployed 20 y/o college student. the rent prices are way out of proportion to the house prices. iuno why anybody would rent at that price when you can own it for so little.
    superhumanchichiblush
  • TuffcoreTuffcore Karmic RedemptionPosts: 5,204Member

    IDOL

    ronniexie wrote on 20 March 2012 - 05:47 PM:

    wtff? Even i can afford that.. i got 16k right now and im unemployed 20 y/o college student. the rent prices are way out of proportion to the house prices. iuno why anybody would rent at that price when you can own it for so little.

    Dude, i make $12,000 a month.
    Pain is temporary
    Glory is forever
  • zantac_2zantac_2 sydPosts: 3,191Member

    IDOL

    ^damn. thats pretty impressive. but surely you would know that house prices in some areas of the US can be quite low now?
    superhumanchichi
  • ~ BunnyliciouS ~~ BunnyliciouS ~ Mum OregonPosts: 26,309Friend of Soompi

    SUPERSTAR

    edited March 2012
    ronniexie wrote on 20 March 2012 - 04:47 PM:

    wtff? Even i can afford that.. i got 16k right now and im unemployed 20 y/o college student. the rent prices are way out of proportion to the house prices. iuno why anybody would rent at that price when you can own it for so little.

    Probably because some people are still living paycheck to paycheck, minimum wage, and/or have bad credit score, so they don't have the $12k cash to buy a foreclosed house

    superhumanchichiSaseumiblushFireDragonmakelovenoises
  • JulieXDJulieXD Uk &lt;3&#33;Posts: 348Member
    Oooo I saw her on the Ellen show!
    ~^____________________________________________^~
  • TuffcoreTuffcore Karmic RedemptionPosts: 5,204Member

    IDOL

    zantac_2 wrote on 20 March 2012 - 06:22 PM:

    ^damn. thats pretty impressive. but surely you would know that house prices in some areas of the US can be quite low now?

    Yea but surely rental prices can't be that high?
    Pain is temporary
    Glory is forever
  • fabrications.fabrications. i'm a ghost Second PlacePosts: 3,469Member

    IDOL

    this story and these posts are making me depressed :(
    pervertSaseumi
  • zantac_2zantac_2 sydPosts: 3,191Member

    IDOL

    Tuffcore wrote on 20 March 2012 - 10:14 PM:

    Yea but surely rental prices can't be that high?

    i think they were just lucky in acquiring the house for so cheap. i assume the rent is on par with the current market in that area.

    im curious. is it quite common now in the US to find housing with such rent or even cheaper?
  • ~ BunnyliciouS ~~ BunnyliciouS ~ Mum OregonPosts: 26,309Friend of Soompi

    SUPERSTAR

    edited March 2012
    zantac_2 wrote on 20 March 2012 - 11:00 PM:

    i think they were just lucky in acquiring the house for so cheap. i assume the rent is on par with the current market in that area.

    im curious. is it quite common now in the US to find housing with such rent or even cheaper?

    crappy house in crappy neighborhood probably.
    Orig price of the house was only around $100K after all.

    The houses in my area (quite, rednecks, small town), 3-4 bedrooms, worth about $200-250K, the rent is around $1800/mo.

  • bombb_bombb_ BOMbb_ california, usaPosts: 1,283Member
    oh, she wa son Ellen. ellen gave her $10k in ace hardware money too.
    f101fs.jpg2uhbtow.gif
    superhumanchichi
  • TuffcoreTuffcore Karmic RedemptionPosts: 5,204Member

    IDOL

    zantac_2 wrote on 21 March 2012 - 12:00 AM:

    i think they were just lucky in acquiring the house for so cheap. i assume the rent is on par with the current market in that area.

    im curious. is it quite common now in the US to find housing with such rent or even cheaper?

    I don't know. I'm a Canadian living in Canada. There was no mortgage crisis here.

    It's too bad i live so far away from ground zero (a.k.a. Las Vegas, Phoenix, Florida, etc) or i think i would make an investment in the States. I know a lot of people in Canada here inquired about investing in real estate in the States but found the tax headaches to be an obstacle.

    Firstly, being Canadian, it's almost impossible to get a mortgage from a Canadian bank to buy a house in the States. US banks likely won't lend to a Canadian either. A Canadian basically has to buy the US house outright with cash. A lot of houses can be had for $25k to $50k so cash isn't an issue but those houses usually require renovations right away. Property taxes also can be like $10k per year. You also have to file taxes in the States and the US withholds like 20% of your rental income or whatever. Overall, coming up with the money is not an issue. It's the overall process that is such a deterrent. If anybody here knows how a Canadian can invest in the US real estate, please PM me and let me know. Thanks!
    Pain is temporary
    Glory is forever
    superhumanchichi
  • Naked-FanaticNaked-Fanatic Posts: 693Member

    IDOL

    Tuffcore wrote on 21 March 2012 - 12:54 AM:

    I don't know. I'm a Canadian living in Canada. There was no mortgage crisis here.

    It's too bad i live so far away from ground zero (a.k.a. Las Vegas, Phoenix, Florida, etc) or i think i would make an investment in the States. I know a lot of people in Canada here inquired about investing in real estate in the States but found the tax headaches to be an obstacle.

    Firstly, being Canadian, it's almost impossible to get a mortgage from a Canadian bank to buy a house in the States. US banks likely won't lend to a Canadian either. A Canadian basically has to buy the US house outright with cash. A lot of houses can be had for $25k to $50k so cash isn't an issue but those houses usually require renovations right away. Property taxes also can be like $10k per year. You also have to file taxes in the States and the US withholds like 20% of your rental income or whatever. Overall, coming up with the money is not an issue. It's the overall process that is such a deterrent. If anybody here knows how a Canadian can invest in the US real estate, please PM me and let me know. Thanks!

    Wow! I hope the property tax for an American isn't that high. Otherwise, I don't see any point in owning a home unless I gain money from renting out multiple homes.
    NaFa-1.jpg
    Naked Fanatics
  • bnz38bnz38 Posts: 33Member
    That kid is awesome! Future Donald Trump right there lol
  • SaseumiSaseumi Juliette Posts: 216Member
    edited March 2012
    It just shows what having forward thinking and supportive parents can do when children see oppourtinities they could take. :) She's making a lot of money on a house that doesn't even look like it's in that nice of an area.. >__>

    Property is always good. I'm personally saving as soon as I get a job. You can work your way up from even a one bedroom apartment, it really doesn't matter. Buy cheap, work on it yourself and sell it on. There may be downturns but property is the safest way to make money one way or another.

    superhumanchichi
  • superhumanchichisuperhumanchichi Chichi~licious New YorkPosts: 2,420Moderator

    MODERATOR

    I wish one of my parents was a real estate agent in Florida or some other place hit hard by the mortgage crisis. Because now I have an idea of what to do if given the opportunity...
    Diamond Stardust  
  • HERMITHERMIT Posts: 10,531Friend of Soompi

    EXALTED ONE

    I'm going off on a tangent here, but this kid reminds me of a female version of Jake from "Two And A Half Men".

    Saseumimelkimx
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