All Forum Posts by: Bob Asad

Quote from @Nicholas L.:

@Bob Asad

is this an actual property, or just a thought experiment?

 Actual property, trying to figure out what others would do since it's a new construction and the town's value (all houses) are going up and appreciating.

Quote from @Theresa Harris:

Can you save more or get it so you are at 20% down and therefore don't have to pay PMI? How much is it without PMI? If you are living in the house (typically the only way you can buy with less than 20% down), I wouldn't expect to break even while living there. You can't count on the value going up. Rent can be increased annually, but expenses also go up (hopefully at a lower rate).

For a second house investment, you don't need to put 20% down, it's 15% minimum. The difference between the two is $4,300 (15%) or $4,000 (20%) but the rent in the area is still around $3,500-$3,700 (so you'll still lose money), but hoping that when interest rates go down and appreciation goes up, you can make money then.

Quote from @Daniel McDonald:

Are you house hacking it? What will be your living situation? If it was a straight up investment property I wouldn't do it but if I was house hacking it and only paid 800$/month to live I'd do it. 

 No, it's not house hacking - it's a second house (investment property).

Let's say you put 15% down on an investment property (2nd SFH, New Construction) and with property taxes, homeowner's insurance, and PMI the monthly mortgage is $4,300

However, in the market (location), most of the rents are around $3,500-$3,700

With an interest rate of 7.6%

Would you still buy the property knowing that you'll lose $800-$600 per month, but hoping to refinance at a future date (4-5%) to have cash flow, and also with appreciation since it's a good location and it's a new construction?

Quote from @Joseph Chiofalo:

Hi Bob, 

There are a few ways to go about structuring the financing for this type of deal. 

What purchase price range is the property? 

Also, would you be purchasing this as a primary residence or investment? 

This would be an investment property and it's around $500k

If you have $100k to invest and put as a down payment, would you get 1-2 places that have a Cash on Cash (COC) of $500+ a month but no appreciation, or 1 place with a 5-8% appreciation each year but you break even or lose $200-300 per month on the mortgage by renting out? (because you put 20% or 15% down instead of 25%)

I have a few questions regarding wanted to buy a full duplex or triplex.

I would be using a HELOC on primary residence to get the 20% down payment + costs required to fix.

1. What is it called (form or process) to have the duplex/triplex be contingent based on the amount it will cost to fully renovate/rehab? (In other words, if it's too high, then I can cancel the buy and not have to lose any money)

2. Who do I need to hire during the process in Step 1? (is it just an inspector and that's it? What's the name of the position or person who can tell me exactly a price range for what areas of the duplex/triplex need to be fixed and how much they cost?)

So I basically would want a person who looks at the whole house and gives me the appraisal cost, the areas that need fixing (ex. kitchen cabinets, tiles, bathrooms, plumbing, electricity, etc.), and how much the cost would be.

Then this way, I could decide to proceed or not based on the assessment. Not sure, if this means hiring multiple people (one for appraisal, one for inspection, one for cost estimates)

3. Last, how do you find the ARV? (After Repair Value; is this another person you have to hire?)

4. Any websites or groups people recommend for Florida to find full duplex/triplex/quadruplex?

Quote from @Alex Booth:

Most tax deed auctions are in-person to my understanding. Tax deeds can be tricky and not always a guarantee that you will make any money. I would imagine that you can assign the lien to another buyer but I'm not sure that you can within that 90-day period. 

Any reason you're considering tax liens over just a performing mortgage note? Those are much more liquid and can be purchased online.

Hi, I'm trying to buy tax liens that turn into tax deeds, or just buying tax deeds so that I own the property quickly in Arkansas and can re-sell for profit.

I'm not familiar with mortgage notes and how they can make money.

Hi, anyone have success with tax deeds in Arkansas via COSL website?

Is it true that you have to attend the auctions in-person and cannot buy online from another state?

They also have a 90-day litigation period where the former owner can contest the tax deed sale and take you to court.

If I bought a property (or land) and want to re-sell it within a few weeks, what forms/documents do I need to give to the new buyer? (And will this also take away any possible issues, such as liens, taxes, etc. off me?)

Thanks