All Forum Posts by: Andrew Bondarchuk

@Greg Scott

Awesome advice, Greg. Thanks so much! I've sent a note out to the listing agent and he's going to be calling me in a few minutes. Is it a red flag that I almost immediately got a response?? Anyway, I'll find out about an inspection period if EMD is required. I appreciate your help!!

View report

I've found a foreclosure in an area that is booming and I believe there will be a lot of interest in this property because of it. This is listed at $51k but comps in the area are valued at $150k. For rental income, there is a home exactly like this one that's renting at $1/sq. ft. so I feel good about $1k/mo. for estimated rent, especially given that the space is so small and the structure seems very good, so I don't anticipate that there will be a lot of structural work to do. I'm estimating $25k in repairs to account for new appliances as well as installing central air (kind of a non-negotiable here in FL). The calculator is showing me that it's less than $80k all in and will cash flow for $500+/mo. I feel very good about this and I want to make an offer, but I've never done that before, so I have some questions.

1) Do I literally just e-mail the listing agent and say "I want to make an offer"? Because the numbers look so good I want to offer full asking price so I have an edge against some other buyers. 

2) If they accept, then what? Am I on the hook for anything at this point? Do I have to have ink to paper to even make the offer in the first place, or put down any earnest money?

3) If I am unable to find someone to help finance the deal, do I just walk away?

They are accepting offers until tomorrow (5/6) at noon and it has only been listed for 4 days. Any and all guidance and feedback is welcome and appreciated!!

LOL, an update is long overdue! Well, not long after my initial activity on this site, we both lost our jobs. We worked for the same law firm that was downsizing significantly (400+ employees to less than 30 in a couple of years). We were in the 5th and 6th round of layoffs. I pretty much walked away from BP and REI at that time because I just had to find work. I thankfully landed with a great company and over the past few years I've wanted to come back and get serious about investing. In reading back through some of the posts here, I'm realizing just how good everyone's advice was and it didn't look like I was really listening. It's really a shame, I feel like by now I could have really done something but I'm more motivated than ever. I'm less interested now in trying to figure out how to make a couple bucks here and there and my new goal is to get my first deal and figure out how to finance it. I picked up Brandon's book as well - "Investing in Real Estate With No (and low) Money Down". I realize I'm the only person standing in my way and all it really takes is finding an incredible deal and the rest will fall into place!!

@Frank Geiger Thank you for your insight on this. I definitely thought the HOA fees were insane, even broken down across the 4 units it still seems high for the area. This is what is listed on Zillow but maybe it is an estimate for other properties in the area and not the true figure for the building. I'll have to contact the listing agent to determine whether it is legitimate.

I listed PMI because I figure even if I could get someone to lend the money I would eventually need to refinance through a bank and since it would be my first deal, I wouldn't have 20% down. I went high on miscellaneous expenses because if something does go wrong I want to have the funds to address it, so any cash flow that the property generates would go straight into a savings account so I wouldn't have to manage the property out of pocket. Given the age of the building I wanted to account for some bigger ticket items as well that are probably coming up.

I see you are a rental property investor. Did you get started with single family homes or multi-family? On the one hand, to me this seems like this property could jump start my business (going from 0 to 4 units would be exciting!) but it also feels like I might be taking on more than I can handle for my first deal. 

I would prefer to know what my rent is going to be all in so I can budget for it. If I received a notice at regular intervals of an increase with no estimate of when that would end I would probably look for another place to live.

Is there a way to return the deposit on the contingency that legal action from the "tenant" cannot follow?

View report

I think this is a good deal, but based on the numbers I've input into the rental calculator, it looks pretty bad. I feel like I am overestimating what it would cost to hold the property, but I'm trying to be very cautious as well. I would hate to miss out on a great opportunity because I literally have no idea what I'm doing, but I've got to start somewhere, so I'm hoping I can get some advice - maybe I'm overthinking this or maybe I'm missing something huge. 

I'm looking at a multi-family property listed at $161k. It has 4 units: 1 unit is a 2/2, 2 units are 2/1 and 1 unit is an "Efficiency Studio" (I think that means it's very small). I've checked into comparable rents in the area and estimated across all units that I could get around $2,500 in monthly rent if it is fully occupied. If I come in around $140k, put $10k into renovations, hire a property manager at $200/mo. (is that realistic??) and put away $500/mo. to account for CapEx and monthly maintenance, it feels like I would still cash flow at around $500/mo. Am I way off base here??

@Kyle Penland

That's unfortunate about the appraisal, but it sounds like you are well on your way to the goal you and your wife worked out. Keep it going!

@Matt Speer

It doesn't sound crazy to me. It sounds ambitious and your reasoning seems sound. On the damaged property, if going by 70% maximum allowable offer, based on your estimate of the ARV and repair costs, you need to purchase it for $34k. at 75% you could go up to $40k.

You have what sounds like a unique opportunity here - essentially acquiring two undervalued properties based on the condition of one which you plan to improve, thus gaining equity in both.  My only question is how would the financing work? Is there a method of acquiring two single family homes with one loan? Can you get a business line of credit large enough for both purchases? 

@Clint McLaughlin

Welcome! I'm about an hour away in Valrico. I can tell you first hand that there is a lot of opportunity here. I haven't done any REI yet however I have worked in a real estate law firm for 7 years and the volume of foreclosures that have come in during that time has been staggering. Home prices are rising again and people are buying. It's a good time to look for fixer uppers.