All Forum Posts by: Benjamin Hedden

Still looking for management iTrip Birmingham is run by one of my agents and they do a tremendous job. 

@Tom Gimer  This is exactly what my understanding was before making this post. Other responses were making me second guess what I had already researched. \

Thanks

Okay so A little backstory. 

This common area he is referring to is a subdivision that was never built. Others have gone in and purchased up lots of the smaller lots in this situation. 

Why would the owner HAVE to purchase the property back?

Why couldn't the new owner with the tax deed just continue to hold the property?

I have myself purchased many common areas of random home owners around the area. When I said common, I have seen it happen 5 or so times. When the HOA management company changes, sometimes these parcels are forgotten. I was under the impression that when a property is clarified as common area for an association there is very little you can do with this purchased property.

I’ve received an email of the following.

I am confused as to why he’s thinking I have to buy back my own tax deed. 

also the part about him restricting common elements of a subdivision can’t possibly be accurate right? 

I feel like it’s fairly common for HOAs to miss paying the taxes for their common elements.

Any clarification would be wonderful.

Thanks

https://galmls.paragonrels.com...

-Address: 2725 Southbury Circle, Vestavia AL 35216

- Price: $125,000

- Note: A+ area, condo in need of a bit of work

- Rent: $1,500

- ROI: 18.03%

-CoCR: 10.03%

-CF: $209

-Address: 1056 Apple Street, Adamsville AL 35214

- Price: $70,000

- Note: BRRRR opportunity, havent been to the property only an estimate

- Rent: $1,150

- C area

- Repairs $30k

- ARV: $120,000

- ROI: 18.26%

-CoCR: 13.72% before refinance all equity out

-CF: $503/mo

-Address: 2007 Patton Creek Drive, Hoover AL 35226

- Price: $134,000

- Note: Turnkey

- Rent: $1,500

- B+ area

- ROI: 13.10%

-CoCR: 5.69%

-CF: $128

-Address: 508 60th Street S, Birmingham AL 35212

- Price: $160,000

- Note: B+ area, STR Possible and Long Term, Will be majorly competitive

- Repairs: $20,000

- ARV: $265k

- Rent: $1,800

- ROI: 14.51%

-CoCR: 10.66%

-CF: $462

- CoCR Short Term: 27.79%

- Short Term Rent: $3,650

- CF Short Term: $1,667/mo

-Address: 722 4th Avenue NW, Alabaster AL 35007

- Price: $165,000

- Note: Good schools B area,

- Repairs: $30,000

- ARV: $230,000

- Rent: $1,600

- ROI: 8.36%

-CoCR: 5.18%

-CF: $272 /mo

-Address: 1410 18TH STREET S, Birmingham AL 35205

- Price: $205,000

- Note: B+ Area, Very college student housing heavy

- Rent: $1,600

- ROI: 7.61%

-CoCR: 3.76%

-CF: $163 /mo

Short Term

- Rent: $2750

- CoCR: 14.28%

- CF: $797 /mo

-Address: 5145 5th Avenue S, Birmingham AL 35212

- Price: $250,000

- Note: B+ area, barely cash flows on long term, better STR

- Rent STR: $2,841

-CoCR: 8.79%

-CF: $461 /mo

-Address: 4158 Seabrook Lane, Birmingham AL 35216

- Price: $250,000

- Note: B+ Area, Very young prof heavy

- Rent: $2,000

- ROI: 9.81%

-CoCR: 5.81%

-CF: $242

Short Term

- Rent: $4,291

- CoCR: 32.59%

- CF: $1,792 /mo

Investment Info:

Townhouse buy & hold investment in Birmingham.

Purchase price: $215,000
Cash invested: $20,000

Simple Cosmetic flip on a townhouse in a great area. Is buy and hold, recently rented for $1,900/mo. Thought I could've gotten a bit more but needed the property rented. 1 thing to note that I learned is we shouldn't have cut costs on tub replacement, Should've just bit the bullet.

What made you interested in investing in this type of deal?

Cheaper way to get into a really good market. Low point of a expensive market, No HOA. Young professionals area, good schools central location

How did you find this deal and how did you negotiate it?

On market, I probably paid more than I should've

How did you finance this deal?

Conventional

How did you add value to the deal?

Cosmetic fixes, Counter tops flooring and removed popcorn and painted

What was the outcome?

Highest rent in the neighborhood

Lessons learned? Challenges?

Don't out price your competition. Try to keep work to a bare minimum like just floors and counter tops if possible.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I handled the real estate deal and we have a good relationship with a great lender when it comes to investment properties.

Investment Info:

Townhouse buy & hold investment.

Purchase price: $44,000
Cash invested: $0

Bought this Town home off market for 44k, Recent comps in the area 80-100k, return is great and I bought it in good condition with a renter paying 850/ mo

What made you interested in investing in this type of deal?

44k in Crestwood, its in the path of growth and was returning 16% net of costs. Its a no brainer

How did you find this deal and how did you negotiate it?

I just called all the neighbors, I asked him what price her wanted and had to call him 100 times to finally get it sold but Took me about 2 months of following up to get the place.

How did you finance this deal?

Cash

How did you add value to the deal?

I didn't the value was there just from getting someone who wanted to get rid of the apartment

What was the outcome?

I got a great deal and Its paying for my car currently.

Lessons learned? Challenges?

Always ask them what price they want, never make an offer

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No I am an agent