All Forum Posts by: Carly Turow

I wasn't sure where to ask this :)

I'm looking to see if there are any landlords or owners of rental houses within walking distance of Indian Rocks Beach FL, or similar area (Madeira, Treasure Island, St. Pete)

We're looking to line something up for this coming February.

I'd love to connect!

Thank you both!

This was a GREAT episode that explains double closing well. Go to the 18 minutes 30 seconds part and she explains the double closing process well. 

https://www.biggerpockets.com/...

I would like to buy my first rental property for both cash flow and appreciation (my area is appreciating quickly).

Type of property: multi-family - It's a duplex, with 2/1 in each unit. Seller mentioned one of the units converted a room into a studio (?) but I'm a little unclear about that, still. I'd probably want to change it back to a 2/1. 

Location of property: Fort Lauderdale, FL

Purpose of financing: purchase, rehab/reno, down payment

Type of financing sought: Not sure. I am not eligible for conventional loans/FHA due to lack of consistent 2 years of W2s. I also do not want to use hard money due to interest rates and also potentially running into issues refinancing later on. I don't know what other financing is available for me.

Current or prior ownership of real estate: I have now owned any property yet.

Occupancy: investment with traditional long term leases

Value of property at present and/or your offer price: I'd like to offer between $210-220K 

After repair value: according to a couple of comps that were 385k and 455k, so I will say ARV of $400

Anticipated or actual appraisal issues: Unsure

Current rents per month: $0, no tenants for the past 10 years in this duplex

Fair market rents per month: according to BP, 2/1 apartments in this are between $1,460 to $1,740, so I will take the middle of $1,600

Down payment or equity: I won't have funds for a downpayment, however, I have a relative that has offered to do so. 

Source of down payment funds, if applicable: A parent would front the down payment. I'd like to be able to refinance in such a way that covers his investment within a few years of the purchase.

Income Source: 1099 independent contractor, I begin in 1 week (am in onboarding) and will be scaled up in client load each month, to 55k income within 6 months of employment (and higher if I choose to take on additional clients). A growing, established nutrition/fitness company to which I am a nutrition/fitness coach to clients.

Gross monthly income (optional): will be $4,500 in six months. My monthly expenses are only $1,400.

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $0 I have no credit card debt or child support, etc.

FICO: Excellent/good 750

Credit issues: none

Additional details: If there is any option to find a lender or method of financing that will cover the purchase price (TBD) as well as the estimated repair costs up front, I would like to be able to pay back any leftover money that was NOT needed for estimated repairs - without any consequence, and re-calculate the loan and payments according to that. I'd like to have the option of refinancing in 1 or 2 years if possible, to pay off the initial lender as well as my parent that fronted the down payment. If there are options I have not heard of yet, please let me know! I feel this is a great investment opportunity if seller accepts an offer at 210k. 

According to the BP rental calculator, assuming:

my number estimations are relatively accurate

I was able to find a lender to replicate the same interest % and loan term as a bank (30 yrs)

Lender would provide 70k in estimated repairs in addition to 210k purchase price (loan total of 290k)

...this would provide a cash flow of around 800-900/mo.

Hi BP!

Next door to the duplex I live in, is a duplex that may be up for sale. I met the owner and he's sick and said he wants to sell, but also sounded like he was really kind of set on what he thinks he deserves (300k). I haven't seen the inside, and it's been vacant 10 years. Seller paid off mortgage. He's got it filled with stuff (some he wants, some he doesn't).. it's been a place where he stores stuff. Seller has been hit up frequently by a local flipper but seller seemed resistant because he believes the flipper wont offer what he wants for it.

I actually posted on FB in a wholesalers/cash buyers group about this possible opportunity just to see if buyers may be interested if I get it under contract. I spoke with one buyer that gave me the price he'd pay (and this buyer is right, it's far, far less than the 300k the seller wants). It likely will need anywhere from 40 to maybe even upward of 100k in rehab.

Out of curiosity, I put the info into the BP rental calculator because I would like to own a rental in my area of South Florida for both cash flow and appreciation. I entered the general rent for this area and according to the BP calculator this would have a cashflow of almost 1k/mo... if I was to buy it at the price that the cash buyer was shooting for.

The thing is.. I can't get conventional loans due to lack of W2s to show for the past 2 years. I don't want to go the hard money route.. and it's likely the seller won't want to do seller financing. I know there are investors that would possibly be a lender.. but how does that work? Do I reach out to investors and ask them how we can work together on this?

Of course, I would still be considering wholesaling this to the buyer that was very interested. I would like to leave both options on the table. I thought I'd ask on here to see if I do even have an option to buy, given that I don't have money for a down payment, I don't have much capital to use for holding costs, and definitely not money for rehab.

Thanks for any feedback guys! So helpful

Hi BP,

Does anyone know the best way to find foreclosed properties?

I can't seem to find it on the county website, and on BP it looks like you have to pay an unknown amount after the 7 day trial ends. How much is that, does anyone know?

I'm driving for dollars, taking down addresses and looking up properties on the county website, but I feel that it's a real shot in the dark to find motivated sellers that way. Not saying it's not worth reaching out, but it seems far more likely that focusing on the properties in foreclosure or preforeclosure would have a greater chance.

Any other ways to get these lists?

Thanks so much!

I'd say: read, read, read. There are book suggestions on BP that you can get and they'll help you greatly. Knowledge is power!

@David Rey You don't need to have a property under contract to begin networking with cash buyers. In fact, it's smart to connect with cash buyers! Tell them you're actively seeking out off market deals and then ask them what they're looking for specifically. They'll tell you if they're looking for mostly SFH or multi, where they are looking to buy, whether they can do only cosmetic or a full gut, and maybe even a price range. Tell them you're happy to add them to your buyers list and will let them know if anything you find fits their criteria.

Also, I recently did the same thing - I sent out my first batch of letters to homes after driving for dollars. I found that about 70% of them were owned by an LLC, which told me they were investor owners. Many properties were vacant or at least seemed it, and looked run down. So, I still reached out and asked them what their plans were for the property (flip? sell? holding to flip later and rent?) and let them know I'd love to connect, as I'm building my network in RE. Those connections will be good for you, and you don't need to have anything currently to offer them.

I don't have the experience of being a landlord but the way I look at it is, if you have a bad gut feeling and you see red flags, move on - there are other qualified people to rent to!

I bought the audio version of the book called "If you don't know how to wholesale after this I've got nothing for you" and it was a huuuuuge help.

It's a real step by step breakdown of the process!