Feed Back: Welcome to the community

[Brian Bishop]

Hello BP community, after reading J. Scott book and Bigger Pockets Podcast, I decided to post for the first time. So here is my first question for you all

Should I buy this House? What am I not looking at? What should I be looking for? What numbers should make this deal logical?

House Agreed upon price $80,000

Appraised Value Price $140,000

I may be giving too much details, but need to get this off my chest. I know it is a good deal but need the reassurance of the Bigger Pockets Community.

I moved home in July, thought I was going to stay at home for 6 months, thought about the idea of homeownership, I was at my best friend’s house and overhear her was making pictures for their 20 year block party. She commented it would be better, but the eye sore of the block was ruing the party. I saw the floor plans of the house and overheard that it’s the worst hose on the block (!!!!)

So I went on about life, I started saving money while living at home, and Christmas money was great at work , I decided that 2014, I would change my financial life around. I would be in control, I would be informed. So I ordered my Credit Report and cleanup some Items on it. So I started saving for the down payment after deciding which loan program to go with. All the while sourcing a qualified contractor. And, most importantly, thinking about my strategies for this house (Live In. Buy-Hold, or Flip, Partner, and Birddogging the house)

Late December, I was online looking at a MLS App, and saw that he was listing the house for sale! It was 75,000. I learned that he filed for bankruptcy, there were no lien and the taxes were paid on the house. I talked to him about taking the house off the market if I purchased it in 3 months, so that I could improve my credit and start saving money.

Fast-forward, Its April and I’ve found a real estate agent (who specializes in investment property) sent out several mortgage proposals and continued to study and listen to the Bigger Pocket podcast, soaking in every guest’s - wrong and rights. I continue to hear on the Podcast this “Fear” of jumping in an investment, hinders them from starting in real estate.

I’m ready to make the move but I’ve run into some problems, I tentatively have the credit score and have the down payment.

The guy I want to buy the house from is in bankruptcy and wants to move, whom ever buys the house will be buying this at a steal because of what needs to be done, yet it’s still a deal, by running my numbers. My concern lately has been the competing house that just went up went up for 95,000. I haven’t walked it yet, I’m scheduling a visit with my real estate agent but my concern is:

1. House condition/why is it selling 95,000?

2. My offer for 80,000 (To High now)

3. Found comp house that sold on Zillow for $140,000, 20yr difference, but don’t see that as a negative offset, house in a desirable location.

I initial scheduled a house inspection, but he walked out because of the condition of the house , yes the man keep a hoarder type-like hose, but my understand and budget figures are all based on a full gut Reno. I knew this, but wouldn’t expect an inspector to walk out! I reassessed the house with my contractor about what we need and how much it would cost, I’m not comfortable with the wiggle room of only 20,000 and the Inspector’s baulk, along with the house offer of 80,000, feel uncomfortable.

I want to tell the seller, with the inspector walking out, and the sale of the competing house, I will now buy it at 70,000 leaving me with more of a budget. (I will feel more comfortable with the deal being my first investment.

I’ve been think about using a hard money lender, (From J. Scott’s Podcast on Bigger Pockets) but I have no clue about Hard Lending.

I’ve come to a point where I feel like I don’t have any more time, Its month 4 and I don’t know how much I can stall, but I need to walk away if I know my role is not to purchase the house. I’m at a place where I feel I need to start my future and the gains could be the seeds to my future, I’m mentally exhausted and ready to take action.

1. My offer. - (I can’t offer $80,000)

2. Moving in, Rental, Flip, partner, bird dog. - (What should I do?)

3. 95,000 House - (How should this factor a play in my negations?)

4. House Inspector - (How do you explain to him, in regard to negations?)

Overall, I know whomever purchases it most likely will be an investor because of the renovation that has to be done. It’s a great deal, so what should I do?

1. Pros- first flip (Confidence)

   1. Sizable payoff if done right or, long term passive income.

2. Cons- Could go wrong, something unexpected

   1. I could take my down payment and clean up more of my debt, and Improve credit.

Podcast:1;2;3;7;14;17;40;42;44;50;53;57;58;60;63;64;65;&66!