All Forum Posts by: Account Closed

I am looking at buying an hud house for 41k and investing another 40+k, I will be living in the home for somewhere between 12 and 24 months. I know after 24 months I have nothing to worry about, but what if I sell before 24mos? Will I pay tax on the difference between what I bought it for and the sale price, or will it be on what I bought it for + the renovations and the difference in sale price?

I assume the house will sell around 115k once complete so will it be...

115-41=76 (paying tax on 76k)

or

41+45=86

115-86=31 (paying tax on 31k)

We are wanting to start buying some single family rentals. Our problem is this, my partner and I have 65k cash to work with. We want to continue to to flip homes and start buying rentals. We dont want to do hard money because of the interest rates. We were hoping that we could buy a flip, rent it out then cash out refi it for 65-80% LTV. We talked to the bank and they said the renters would have to be in the home for 12 months before we could cash out refi. Any way around this?

There are 2 homes coming up on my local sheriffs sale site that I ma interested in. I was wondering if anyone has ever approached these properties on a purchase before it goes to sale and had success? What worked?

I was thinking about sending them a letter and setting up a google voice number.

Thanks! With the liens... Lets say the auction is thursday at 9am, if I do a title search wednesday at noon am I still safe? Or can a lien be applied at 8am thurs? Ben, do you regularly attend ham co auctions? We are looking in eastern ham. co. and cler. co. and I have never been to an auction of any kind. It seems a bit overwheming, but like I said the mls is getting dry.

I am looking for info on Sheriffs sales. I look on my countys sale website and it seems there are good deals regularly. We have been using the MLS for flips to this point and the market is dry right now. I am worried about going to a Sheriffs sale because of liens on a property. Do they make sure the title is clear before the sale? Any info on the whole process would be great. Thank you

With the size it would not be much. We also Have a cheap concrete guy. The only sub out items are concrete, wiring the main electric box up and drywall, everything else is done by us. Our concrete will be 4-5k and the drywall will be about the same. With us living in it for the next tow years we are also not as worried about profits

This is the letter I typed up. Our realtor will be putting in that our offer is cash and contingent on test for meth.

Dear Seller,

We wanted to write a letter explaining my low offer. We did a partial inspection on the home when we walked through. It appears that the home was once used to possibly grow marijuana due to the electric in the basement (there were multiple fluorescents and ballasts). Also the moisture content in the home was high as the paint is separating from the drywall, and this can be a sign of mold growing in drywall. Aside from this issue the items that need to be addressed are as follows.

1). Electrical system needs to be replaced. The incoming line in the home is running to a sub box with a 200 amp main, the line running into the home is not 200-amp line. The original wiring has been cut in multiple locations and spliced into new lines; these are not contained in a junction box. The original breaker box needs to be replaced as it is now running from the sub box. The electrical system will need to replaced from the incoming home line on.

2). The roof, gutters and Header boards need to be replaced. The gutters were replaced 5 years ago per the listing, however they are clogged and the downspouts are disconnected in some locations. The header boards behind the gutters are rotting due to the gutters not draining properly.

3). The HVAC system is very old and needs to be replaced.

4). The subfloor in the bath and kitchen are rotting and need to be replaced. It looks as if the plumbing between the kitchen and bath was leaking and will need to be replaced as well.

5). The drywall needs to be replaced due to the high moisture content and possibility of mold in the drywall.

6). The concrete needs to be repaired/replaced. The driveway and walkway are crumbling and the patio is sinking.

After walking through the home is seems like it will need considerable work to get the home livable and up to code.

Thank you

A little backround on myself: I browse bigger pockets a lot, this is my first post. I have flipped 3 homes, I lived in 2 of them to get around taxes. I am getting ready to buy a 3rd to live in for 2 years to avoid paying tax. We have bought reo's or short sales so far. I found a home in a neighborhood that I own a rental in. It's a 1950's cookie cutter neighborhood where every home is the same (936sqft 3/1) homes in decent shape sell for 104k to 110k. The home I am looking at is on a smaller lot than the rest. It needs a full gut, all mechanics and everything else. It is owned free and clear and was a rental that ended up being rented by a pot dealer who used it as a grow house. It's been vacant and listed for sale for over 200 days. It's listed at 70k. I think the arv would be close to 110k as everything would be new which would put it above anything else that has sold in the neighborhood in the last 12 mos. I believe it will take 40k to get it in perfect shape. I want to get the place for the low to mid 40's. The electric is violating all sorts of code and I believe it would be an issue to get a mortgage on it. We are offering cash. I want to write a letter with my offer explaining that selling to anyone besides a cash buyer will be problematic and "sell" the idea of selling to us for a low price. Has anyone done this? Any advice/suggestions?