All Forum Posts by: Yu L.

The 9% is after the current tenant move out, if I keep them there, the cash flow is -ve.

I have a deal which I structured owner financing in it, my plan is hold on to it and will either sell it at the end of the loan period or just keep it.

It is a SFR, ARV is ~ $450k, I am buying it at $461k. The deal is actually in the financing. The way to pay it off as follows:

$30k down today.

first 5 years, monthly payment $1100

2nd 5 years, monthly payment $1175

3rd 5 years, monthly payment $1250

At the end of the 15th year, there is a balloon payment for the remaining balance of ~$220k.

The current market rent is about $2200, so excluding the property tax, insurance, cash flow is about $600/ month.

Fix up cost is ~ $50k

So the cash on cash return just on the cash flow is 9%/yr. (the rent tends to go up by 3% yearly in my area, so by the 6th year, rent will go up to $2550/ month and by the 10th year, rent will go up to $2956/month)

And assume I sell it at the same price 15 years from now at $461k and pay off the $220k, I still net ($241k - closing cost / fee) at the end of the 15th year.

However, there is some settling issue in the concrete slab foundation, which I don't plan to fix, I'll just fix the door frame and window frame to make it rentable.

There is another issue, it seems the current tenant is grow pot (they insisted it is for medical use and said they have the license to do so) in the converted garage, which they don't allow me to get in. They are planning to move out though.

1st question is should I close after the tenants move out or just buy it as is and kick them out myself, I don't know what the landlord's liability is if tenants are growing pot in the house.

2nd question is what is the negatives you see in the deal, other than a long holding period and negative equity at the beginning (It will take roughly 11 years to get my down payment and fix up cost back)

3rd question, what is the best exit strategy?

Hi, I wonder if anyone know any flipper who handles historic house in the Bay Area (CA)? I am working on a lead which the seller is willing to sell the property at land value only, however, it is a historic house. Anyone with experience on historic houses?

@Michael Quarles for your #2

2 - Absentee In State 40-100% equity SFR 3-5 Bedrooms 7 years ownership no Corp or trust

Does the distance on where the owner live makes a difference?

Would you just pick owners who are at least certain miles away from the property?

@Shariyf Grevious , you can use google doc to solve that problem, check out this page:

http://superuser.com/questions/92176/can-you-convert-an-address-to-a-zip-code-in-a-spreadsheet

I just tried it out, it worked. The problem is google doc only allows 50 importhtml functions per worksheet, i.e. you can only get 25 zip code each time use this method, so you might need to do a bunch of cut and paste, however, it is possible to get it done in google doc.

thank you @Rick Harmon , @Sharon Vornholt , @Mark Pedroza

@Michael Quarles , you don't have eviction on your top 10, is it on your list at all?

@Sharon Vornholt, I just come across a probate case with 2 executors who happen to live in the same mailing address, however, they don't have the same last name, I assume they are just domestic partners (male and female). In that case, do you send each one a letter or send out a letter to one of them?

Thanks!

I found a subject to deal, the total PITI is around $3000, market rent is around $2800 on the conservative end, $3000 being optimistic.

There are 2 loans on the mortgage (I found these info. Through title co., not from seller)

1st loan - recorded date: May 2005, loan amount $650k, 30 yrs adjustable rate;max. rate 12.6%, current rate – unknown, adjust every 6 months.

2nd loan - recorded date: March 2006, loan amount $77k, 20 yr loan, assume HELOC

According to the seller: total mortgage payment $2200, insurance $100, property tax $700

(However, I did the calculation, the payment on the 1st loan should be at least $3500, assume at 5%, seller will provide more information on the loans later on; my take is if it is adjustable rate loan, forget it; she told me that it is a fixed rate loan though; for this discussion, assume the total PITI is $3000)

According to the seller, the total mortgage owed is $680k.Today’s market price is around $620k, during the last peak, it was around $720.When it peak this time, I expect it to be higher than $720k (based on the information from the nearby market, some area has already gone higher than the last peak)

Seller is willing to sell it subject to.The roof needs to be replaced and probably some sewer problem which costs $7k to fix at most.So the out of pocket $ to buy is < $20k for now and it won’t case flow for the first few years, assume rent go up after that, it will.

My plan is to find a money partner to put up the money to fix the roof and the sewer problem and hold on to it for at least 10 years and wait for the equity to build up, should have at least $300k equity or more in 10 years and sell at that time.(equity partner will pay for all repair and also all the PITI if the property is vacant, assume the vacancy rate is 1 month a year, in 10 years, it will be $30k, plus the remodel cost of before selling, money partner will bring in < $100k.)Of course I will be managing the rental during this time and split the profit with the partner.

Is this a good deal or not?

I want to share my $0.02 here. I use the Compass Tool by Catch.com and the notepad goes with it. It is a tool on Android. The Compass tool will provide you the street address and it integrates with Catch note very well, just open up Compass and then click "Add Note", it automatically put the street address in the note and you can enter the note for the house description.

However, Catch.com is no longer in business, I guess if you look hard enough, you can still find the apk somewhere online.