All Forum Posts by: Amit G.

Thanks @Jay Dewberry. Some very good points! 

This is a motivated seller and has given a ballpark figure.  

I guess I should  probably reach out to a realtor for comps. Thanks for explaining the way to determine comps.

Lets see if someone wants to chime in for zoning.

Thanks @Thomas S.

I know its suggested to approach a realtor or get an appraiser to determine the fair selling price of Real estate.  But as it has been mentioned in some of the other posts also, that it is not always feasible to approach these professionals for every property that you are trying to analyze, so my question here is how do you evaluate it at the beginning of the deal so you don't find yourself crossing your fingers at the time of appraisal while selling your property! 

So I am looking at a property that I can probably get for around 69k and straight out the bat, the zestimate for it is 184k.  I trust that it has a max rehab cost of 40k which I am going to know for sure the next weekend when I inspect the property with my GC.  Now my confusion lies with the fact that the nearby comps are nowhere near that zestimate and are averaging out to be around 110k. Now I also know that even though this property is currently zoned as Residential, it was zoned as Commercial before that and is also designed as a split. 

Do you think the flexibility with zoning justifies the higher zestimate?  Pardon my lack of understanding how zoning works!

Thanks @Cooper Bert. Appreciate your in-depth analysis.  It gives me something to go by to set my targets.  The catch as you said would be to try and find something matching the criteria.  

Thanks @Cooper Bert and @Christian Bors

@Cooper Bert looks like a hard one to get!

Thanks @Christian Bors. so what is the expected cash flow like in this area for rentals?

@Christian Bors Thanks for your comments! I am not going to try to defend the people involved here as I don't know the GC personally but obviously I am not planning to go in this partnership blind. That's why I was trying to understand what the contract terms should be.  

From your comments, I get an indication that sticking to rentals for our area is safer, is that correct? 

Thanks @Cooper Bert and @Jesse Holshouser for your inputs! I am meeting the GC next week and will try to gauge the expectations to make a hopefully wise decision!

@Cooper Bert It's nice to see south central penn investors active on this site! I don't know the GC personally but through my mentor who I have known for a long time.  It's not that he has some properties ready and is looking for investment.  From what I understand, he has been doing it for a very long time, i.e. managing properties and enhancing rental values through additions and other means to be able to raise rent for my mentor's properties. Of course, I have to do my due diligence to vet him out before I can trust him and vice versa. 

Tax on flip is a bummer! I am glad you pointed it out.  But aren't there any ways to legally bring it down?

Regarding your startup model, is it something similar to Fundrise but local to south central PA?