All Forum Posts by: Brandon Pearsons

There is nothing around here in Northern California that meets the 2% rule. This is as close as it gets.

The details
-The bank counter is 119k
-Rents for 1k-1100 per month
-Built in 2004
-1500 sq ft 3/2

Financial:
-25% down

(+)'s
Good neighborhood and surrounding area
Newer home so hopefully not many repair
Some Curb apeal
-Good size

(-)'s
-Tiny lot (backyard maybe 6 foot long)-
-The builder put a lot of these home in one area so the
street is one lane
-low end fixtures etc, not the best layout.

Goals:
Some Cash flow
Solid Investment
Appreciation

Photo: (Tan colored house)

Buy from somone who bought it in ways 1-3
Is there a place on this board where you can find this?

The ending auction price was 226k

Hello Ty, and J

Thanks for the info. The auction is actually in about 30 mins, so I got to jam over there soon.

I just went inside the house. It needs paint, all the rooms are different colors, the carpet has been pissed on by the dog, the owner kicked a couple holes in the wall. The furnace does not work, I tested it. It needs a stove,fridge and washer and dryer as well.

Im factoring 10-12k for all those things..

Others looking at the house could not find any good comps either unfortunately the range looks like 180k-250k after rehad

Please help friends.. The auction is in a couple hours...

Thanks.. .This is a college town as well, but this property is outside of the college area.

I guess the bottom line of my question is... current property tax a good way to determine the value of the property?

There is an auction tomorrow in my local area. I am trying to assess the property value of it.

I can't find a good comp. In the Foreclosure auction, there is a property tax value in 2009 of $1700, which puts around 140k which seems like an extremely low price for the property.

Zillow puts the property at 306k which seems high.

I looked what is on the local MLS and it varies from 170k-400k for the same square footage.
When I look at the same year built it looks like around 280k, but those house look nicer.

Below are the annual property taxes for the house from Zillow

Fewer entries
2010 $1,693 -- $163,713 -0.2%
2009 $1,693 6.6% $164,103 2.0%
2008 $1,588 -- $160,886 2.0%
2007 $1,588 1.3% $157,732 2.0%
2006 $1,567 -1.0% $154,640 2.0%

Question: Should I base by bid on these rates which equates to a current market value of 140k?

The outside of the soon to be auctioned house good. I walked around the front and back yard. It was was built in 1999. I will go in the inside tomorrow pre-auction.

So I am thinking something like this tomorrow.

(.7x140k)-5k =93k
Typically max price = (70% * ARV) - repair costs.

I just know the house will get bidded for well over that price. The last auction I went to in this town had a large turn out and was a dump and sold for 156k. It was smaller and built in 1900.

Please help.

Thanks

John

Thanks for the reply and the analysis of the buy. It doesnt sounds like a good one. Im not sure why these duplex sell like hotcakes...Its got to be people seeing some form appreciation...

The way I think about things after the recent boom is dont bank on appreciation, and I need some sort of steady income right now.

Unless something has decent instant equity or cashflow... Im not sure its worth it for me.

I wish there were 80k deals with $1300 a month income. I would jump on such a thing!

It sounds like you have some rule of them ratios formulas....

Thanks

Hi Chris,

Thanks for the info...I need to start with something a bit on the low end, because I do not have a whole lot to work with.

Can you link me to that thread. Im new to BP

Thanks

I have been to one. It seems like more of like a game show. Two guys working to together.. One trying to get every last bid out of the bidder harassing them. It seems like all the auctions were bumped up by some mysterious person on the internet bidding...