All Forum Posts by: Brett Jackson

Hi all, I'd like some seasoned opinions on a deal that is now at my fingertips. I've measured this from every angle i can think of, but i'm still nervous about overlooking something. Here's the specs

2 duplexes sitting back to back of each other. these were built in 2004 and remodeled within the last 2 months. new tile, paint, and replaced some bath fixtures. ( i walked through them about 6 weeks ago when the repairs were underway and talked to the contractor) these have been for sale for several months and though they aren't in a rough neighborhood, it isn't the most desirable one either. while under rehab, all of them were vacant but 3 of them now have tenants with one yr. leases so they rented quickly, and i would have no rehab costs initially.

one duplex is 3/1 and rents for 550/mo. each (1 of these is the vacant unit) the other, with identical sq/ft is 2/1 and each is rented @ 485/mo. these are listed @ 75k each.

I made an offer today on both @ $120k, and split closing costs and they countered @ 130k. i will use conventional 30 yr. financing with 20% down so my PITI will be right at $900/mo. combined- these are separate properties, so i would have 2 loans @ 65k. max income would be $2,070/month but i'm thinking i should still only count 70% of that in my cash flow calculation which is $1,450 leaving $550 monthly cash flow. I have spoken to the local housing authority about sec 8 and may consider that if i don't have some good applicants in the first few weeks. The housing authority told me they have plenty of demand for units like these.

please disect and tell me what i'm missing. TIA

Thanks everyone for your input; much appreciated! We spoke today about this, and next week will hammer it out formally. So far everything is amicable and this doesn't surprise me, but as noted above, things can change over time and its best we do everything formally to keep everything above board.

hello BP , I'm hoping for some seasoned advice on an idea. My brother in law wants to partner with me but just as a financial partner with no other interests in the property. Since we will be combining cash for down payments, would he necessarily need to be included in the ownership? our thoughts are that I would pay him back over time and then he would have no interest at all in any deals we get. I do plan to purchase an umbrella policy to help protect me. THe deal we are considering is a pair of duplexes. im sure there are some things/angles I havent considered here due to my I experience. thanks for your time.

@ Brandon Turner- i'm driving over in the morning to look for myself and will take a few pics to send you.

@ Mark Ferguson- that's what i'm worried about. Thanks for the info. my realtor just told me we had till Monday to reply since we didn't receive notice until after hours tonight.

Howdy all! longtime lurker, first time caller..

First, a big thanks to all who contribute to BP & that awesome podcast!

I'm Brett, from Arkansas. relatively new to the R/E scene. I have a flip under my belt and one sfr so far.

Now, to today's events and the reason for my post.

I currently have a sfr under contract from HUD. 3/2, 18 years old that needed, until today, about 8K worth of upgrades & reno. to flip, LTO, or rent if it didn't sell quick enough to suit me.

I just received an email from my realtor that a truck drove through the privacy fence, the kitchen and laundry room this afternoon.. yep, it now has a drive thru.

According to the info i have from HUD, i can A. walk away and get my earnest money back. B. close as is (as if..) or C. obtain 2 bids from licensed contractors for repair estimates within 72 hrs. HUD will compare these 2 bids with the estimate from their field services company and, I suppose, pay the lesser of the 3 - not clear on this yet, and I need to be.

they want an answer in 24 hours. I have asked my realtor to gather more info asap. I am using an in house loan from my banker for this deal, and wont be able to reach him till monday at the earliest. so now i have to wait for the contractors repairs to be complete before closing.

Optimistically, I'm thinking i might get a credit from HUD, and a house with a new kitchen, etc.. sans appliances. I would apparently pay for the repairs and HUD issues a credit at closing.

Any comments or suggestions, and especially similar experiences with HUD are appreciated.

Thanks