All Forum Posts by: Account Closed

The TO cost is in the maintenance budget, I also have not added in deposits to the rental income. Can you explain the CapEx to me? I know what capital expenditures are, but I did not budget them on my other rental. Our goal is to find something that needs work so that once we have completed all renovations we have 25% equity, then refi to get our full amount back out. We have not budgeted it in on our flips or our rental we already own.

I ran the numbers on it and have posted them here. I overestimated on things I will be paying (insurance, utilities, etc) and underestimated on rent (I should be able to get 25-50 more a month than I expected. When we purchase the property we will be renovating all of the units 100% so new applicances, kitchen, windows, doors, cabinets, bathrooms and balconies. We are also putting in a new boiler for the steam heat. Thats all included in the 80k price. We know the roof is less than 10 years old too, so hopefully any large expenses will not arise for a few years, thus giving us a large amount of reserves after a few years.

Here is the data:

Cost of unit 40k

Renovations 40k

boiler:6800

windows&doors:5000

unit renovations: 16k (they are small and with them being low rent we do not want to go nice)

Per unit:

carpet &pad:1k

kitchen and bath floor: 300

appliances:1100

cabinets/counters/sink:800

Bath:500

Paint:100

Doors:200

balconies:4k

drywall work:3200

misc expenses: 5k

Annual rent 19,200

Annual Budget:

property tax: 1800

vacancy:800

insurance:1030

repairs & maint: 2400

utilities:3600

advertising:100

grounds keeping:600

misc:500

Annual Debt service:5756

I found a 4 fam that needs some work, after all repairs I will have ~80k into it and it will have a 100-110k ARV. I would buy it cash and then refi the 80k I invest, so in the end I would have almost nothing out of pocket. It looks like I would make about 250 a month overall after getting a mortgage and applying the 50% rule. I know that most everyone shoots for $100 a door, but given the fact of close to 0 out of pocket would it be worthwhile?

We are hoping, just due to the time on the market, its 49k and we are offering 25k, hoping to get it for 30k. This one will just be a flip not an owner occupy.

We did not get it in the end, I am low balling a home path that has been on the market for 120 days tomorrow. I am going to offer 50% of list...

So there is an hud home that we have put 5 bids on. The home was priced 108k and we put our first offer in low, we kept coming up and they told us is the minimum net would be 75,600. We saw the price had dropped at 45 days on the market. It dropped to 95,040, we thought this was our chance to get it at what we wanted our price to be around. We put an offer in that netted hud 71k and they countered at 75,600 again. If they dropped the price why didn't they drop the minimum bet as well? We are the only ones bidding on the property. Should we keep submitting the same bid or just give up at this point? Our max we want to go on the property is 72k net to hud because its going to lived in my us, needs 40k worth of work and will be worth 130kish fixed up. There is little profit in the home, but it is in a perfect location for us as it near childcare and family. I am just trying to figure out if its normal for the threshold to drop at any time or if it has a set time to drop. Any help is appreciated.

My agent does not know where to go with this one either. We normally see HUD and homepath homes listed at 60-80% of what arv would be this one is around 90% and needs about the same amount of work.

Where would you start your bid? I am at a loss on this one. The only other hud home we have bid on was priced right this one seems to be priced over market value

Do you think the sale price on the auditor site has any relevance?

So this is a flip that we will live in for a year or two (likely 2). It in an area we like and is close to our rental property. It has been on the market for a little over a month and seems to be priced poorly. It needs the have redone, some decent work on the living/dining/bath and plumbing work. If you pull comps on the area the median is ~150k due to some homes in a historic neighborhood around the corner. Given that I know the area well I would say it is a sub 120k home with some decent updating and sprucing up. I want to put an offer in but I feel like a good deal is getting it for 60-65 and an ok deal is getting it for 70-75k. Does anyone have experience with hud and low offers? Here is the county auditor info with foreclosure sale price and the listinghttp://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=411-475067&sLanguage=ENGLISH&zipCode=45150&city=&county=&sState=OH&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1

http://www.clermontauditorrealestate.org/datalets/datalet.aspx?mode=sales_clermont&sIndex=0&idx=1&LMparent=20