3 potential properties in Jacksonville Beach

[Michael Abernathy]

If any of you have been following my recent posts you'd of read that I am ready to find my first deal.  I spent the weekend driving around an area I used to live in.  I was looking for signs of a distressed home (old chipping paint, lawn/yard in disarray, etc...).  I wrote down all of the addresses and these three look the most promising.  They all seem to be occupied by the original owners (Late 60's) and all of the original mortgages have been paid off.  One property the owner has taken out several loans but she also has paid most of them off.

I calculated the Est. ARV by simply taking the average of Zillow and Redfin. I know that if any of these start to play out that I will need to get a more accurate estimate.

My question is.....Now what.  Do I knock on their doors, do I send them a letter, etc....

Also what about financing. I have around $50K but even if I can get any of these properties for below 70% of the ARV, that is more than I have. I would assume I would need to find a private lender and leave the banks out for now.

House 1

• 3/2
• 1,288 SF
• Est ARV $288,011
• Delinquent taxes: 2016 $1,156.12

• Notes:  I have never seen a car in the driveway and the trash can has never moved.  The lawn is mowed each week though.  I also cannot find where the original loan was paid (county records).  Zillow shows as the house being purchased in the early 80's so with a 30 year note, it should of been paid. I also don't see any failure to pay or 2nd mortgages. 

House 2

• 3/1
• 1,401 SF
• Est ARV $330,012
• Original Mortgage paid off in 2002
• Home owner has been taking out loans against home.
  • 5/1/2002 -$50,000.00
  • 6/4/2004 $50,000.00
  • 6/15/2004 -$46,291.00
  • 12/7/2007 -$25,000.00
  • 5/17/2013 -$22,900.00
  • 5/31/2013 $46,291.00
  • Outstanding Mortgages -$47,900.00

House 3

• 3/1
• 1,344 SF
• Est ARV $288,025
• Original Mortgage paid off in 2001
• Needs the most work