All Forum Posts by: Cody Bailey

I purchased a home that was in pretty bad shape.   I put a lot of $$ into bringing the electric, plumbing  up to code.  Put new HVAC system in, carpet paint etc....

I also protested the taxes based on my purchase price, and the market appraisal the bank required and was successful in reducing it ~$20K (only a $65K property on the rolls anyway)

my tenant of 2 years just moved out, and i stoped by to check out the property.  I stopped by the speak to the neighbor and it turned into a very heated discussion with me leaving before things escalated.  He accussed me of cheating taxes, having bad tenants in there, and running the place down....He has my contact information and was very happy to see all the work i did when i purchased the property.

he is mad now

1- i protested and thinks i ruined values

2- claims the tenants were drug addicts (first i have heard of this)

Home was left in perfect shape, tenants paid on time i drove by 3-4 times a year and never saw anything out of the ordinary.

Today he further went on to  going over to someone i had sent by  that was possibly interested in buying.  He was bad mouthing me, the property, and i can tell this will be an ongoing issue.

How have you all handled this before?

Thanks Raymond. I will continue my reading. I am holding about 10% of Gross rent out each month to account for some of the issues you mention ($995 rent = $100 /month)

I actually sweep $447 into my "purchase" fund,and leave $100/mo in my operating account that also holds the deposits and pet fees.

I replaced the toilet, sinks, faucets, plumbing stops, gas stops, full new a/c system (i'm in TX), and rebuilt all parts on HW heater since it was in good shape as well as replaced the ceiling fans. I am hoping to minimize my maintenance issues for the first couple of years on this proerty, since i have a full time day job.

Didn't want to have to deal with a lot of maintenance issues. I am not familiar with the 2% or 50% rules but will be shortly!

gotta love this resource.

have 2nd home under contract trying to figure out which direction to go. I fixed and am renting my first deal. I went conventional with 25% down, plus paid the rehab out of pocket. Very nice returns, but took $28k cash (10 deposit + 18 rehab/utilities/carry). Cashflows $547/mo after note and ins and taxes. Wish they would all cashflow like this, but i realize this was a great deal.

I want to seller finance this 2nd one (like the thought of no ins, no tax, no maint) to preserve cash .... Advice appreciated.

2 bed 1 bath 800 sq feet + detached 2 car + 9x13 finished building that previous owners used a bedroom (has closet, window, cable, elec) Under Contract for $30,000

Appraisal Dist Value $46,60 Market Value with $15,000 Rehab $65 -70K

Rent would be $750/mo with the $15k rehab

Bank Note on purchase $193/mo (5.25 @ 15yr amort, with 20% down)

Tax $100/mo, Ins $73 / mo

Total Exp Mo = $366

Cashflow = $384/mo or $4,608 yr (over 20% / yr)

I am out rehab $$ until i refi cash out which would then reduce my cashflow to about $250 / mo.

If I seller finance I $650 / month at 9% on 15 yr term I would make $457 / mo

Carry that out 15 years and I like that.....My risk is the bank calling the note, or having to foreclose if they don't pay. With a $6,000 down payment the foreclosing doesn't bother me. If the bank calls the note, i just pay them off.

How many of you started off buy and hold and transitioned to seller financing deals? Seems like you get the cashflow + interest and don't have the maint issues to worry with.

I came across an individual who had inherited the property. It was FSBO. I had to draw the contract and do the negotiations myself, which was a learning process.

I am looking to utilize hard money, Just need to find the right deal!

Wanted to Introduce myself. I am a new investor in Fort Worth, Texas.

I have a background in Residential Construction, Consumer Finance, Retail Banking, and currently am a partner in a Land Service Company in the Oil and Gas Industry (I am a Landman).

I purchased my first property in July, did the rehab and put a tenant in it just under a month from closing. My longterm strategy at this time is buy and hold, but i do plan on flipping a few to get some additional cash.

The first deal was financed through a local state bank with 25% down, at 5.25% on a 15 yr, and cashflows $547/month. I got a 2 year lease on the property.

I have realized I am looking to find some motivated sellers that may entertain seller finance as it will help my capital go a little further.

Look forward to my continued education in RE with the help of BP.