All Forum Posts by: Account Closed

Michael,
You are correct in the 1 or 2 block statement, as the high levels of distress span over many miles.

You mentioned, "If you were able to acquire a lot of the properties in the area and rent/develop them over time, it may be a lucrative endeavor." And also, "being the first guy on the scene in a run-down part of town will probably not get you very far " I somewhat agree with your statements but would like to make a few comments.

Although risky, being the first investor on the scene can have its advantages. Two in particular which I think are very nice, are the surplus of inventory and rock bottom prices. I understand that I am taking a risk by having a 40K investment in one of these homes after rehab, but with a desired sales price of say 60K am I really being that optimistic. With the recent increase in home purchases and the ability for buyers to obtain an FHA loan much easier compared to the past I think offering a 60K Turn Key Property may work. Even though it is not the greatest area I can guarantee you there are people that would like to be in that area as well as own their own home.

I know I probably sound a little crazy with all my speculation but I have to look at all strategies with the level of competition going on right now. Its a risk Im may be willing to take

Today I was driving around looking for potential investment properties to buy-rehab-and sell. I have recently been having a tough time getting anything under contract due to the lack of inventory and the level of competition in my target market.

Anyways, today I was given a lead on two properties that I could acquire for 15k a piece. Since I have come to the realization that I will have to expand my approach and may have a hard time finding something in my desired areas I decided to go check out the houses and scope out the surrounding homes. As you can imagine the area was very run down and many of the houses were very distressed. I was hoping to find other houses nearby that had been rehabbed and flipped for a profit. Unfortunately there were very few homes that appeared to be renovated. The nearby comps were no very promising either.

It is very sad to see homes located in such a prime spot only miles away from the city and other desirable locations that are so run down and low in value. The area is filled with SFH's that have the potential to be extremely beautiful with large lots.

I am debating on if I would like to take on a project like this, especially since other investors have steered clear of this market and see no potential for profit. One of these houses I looked at has a very solid base that has not been vandalized and would require an estimated rehab of about 25k for what I would like to sell the house for.

What I would like to know is do you all think Investing in certain areas can have a domino affect and attract other investors to the area? In my opinion I feel that all it takes is one investor willing to take a calculated risk on one of these homes to cause a chain reaction and bring value to the surrounding market. When people mention a certain area is becoming trendy it always seems to correlate directly to the housing value in that area. So if someone can afford to take on a risk and is willing to take the chance, then why not? Someone has to start the trend, right?

Very nice work Aaron. It looks great

Dell Schlabach

Thanks for your response. I have read a few articles that mentioned if the house gets flagged for any reason, like the ones you listed above, the loan will not pass and the inspector will come back after it is fixed. Im sure this can delay the process a month or so. A first time sale to an FHA loan seems like it would be quite the learning experience.

Wayne Brooks
Wayne-You mentioned structural/safety Issues. What all would fall under this category? Would something as simple as a cracked window make the house unable to sell or would this have to be corrected by the seller? Also, how strict do the FHA Inspectors/Appraisers get when they come look at the property?

Thanks

Currently I have a rehabbed property that I am trying to sell. It has been on the market for <3 days and the offers are rolling in like crazy. All offers that have come in have been FHA loans.

I am trying to decide if I should wait for cash buyer or a conventional loan. I have been reading about the FHA appraisals and hear they can be tough as well as hold you up for at least a couple of months.

I would love to hear from anyone who has had any experience selling to an FHA loan and how difficult/long the process took?

Thanks

Good evening.

A good friend and I are in the process of creating a business partnership. Our business will be Flipping Houses. We will each be putting up an equal amount of cash to form this business. We would like to have the same amount of liability, responsibility, and risk.

Our business will be set up in the state of Georgia. What we would like to know is, should we set up our business as an LLC or an LLP?

So if anyone has any advice and what would be the advantages/disadvantages of each I would greatly appreciate it.

Thanks.

This is where I started buying my properties two years ago. I never paid over 27k for a single property and never put more than 5k into a single one. So even though the prices have doubled, your rate of return is still high.

The large investors have really driven up the prices in that area. I am wondering what the ceiling is on this area. I would like to see my houses get into the 75-85k range, but I don't know if they ever will.

As far as tenants go, you have to be pretty selective and my average rental rate is about $825

Pat L.

How much do you pay for your granite? Not just the granite itself but everthing including install and cuts, etc.

I am paying 28 sqft and $100 to add an undermount sink. The granite looks great.

Im just curious on which store you all use for your rental property material and why and what you buy there?

For me it is a combination of the two.

Homedepot:
For paint I use Kilz Pro-X dead flat, all fans and light fixtures, all plumbing(bigger selection)

Lowes:
I use there tile and backspalsh. I feel they have a much bigger selection.

Im missing a few but these are my major ones.