All Forum Posts by: Chad C.

that sounds like a deal!  Return your cash investment the first year.  Paid off in 4.5 years? 

is this a good calculator to use?

https://www.calcxml.com/calculators/inv04

 Most of the basic calculations that I do come out 10 or 12%, but when I do it on this calculator they are usually 20 to 30%. Maybe I am under estimating the tax implications, and value on appreciation. 

I see rent around here for .50 to1$ a sq foot, and sells for 50-100$ a sq ft. And correlation is pretty linear between the two. 70k home is going to rent for $700-800. The cheaper the property the higher the spread.

ARV is probably 50 to 60k. Rent would probably be 6 to 700. Pictures look like it's move-in ready.

will the bank accept a high offer, or is there a mandatory bidding period?

Some good tips on the matter https://www.thebalance.com/winning-reo-foreclosure...

I've read to increase your odds, pay cash, promise a quick closing, and no inspection/appraisal.  Are there article said to look up the listing agents history, they may have multiple Reos, and you can  Study the list and sold price to  get an idea about how much the price might move.  Also see public records to obtain the starting mortgage, and the remaining balance, that will be the price the bank excepts. 

Great deal on home for 20k but it may be a way for the bank to drum up interest. The agent said there have been 15 offers, and said there is a 10 day offer period, then the bank takes the higher bidders, and ask them for highest and best. Agent regretted telling me the highest bid, I guess there's a confidentiality aspect there. He said I would need to be over 30k.

How common is this?

Could the agent be driving up the price?

How do I bid? Do I offer my best, with the minimum returns I am looking for?

He said the bank doesn't always let all bidders re bid, so I'm thinking I need to be in the top 5

Thank you! I will definitely look into the hoa details.  I just can't find these 2% deals. Rent goes for about $1 a foot at best around here. I don't think I can find a deal for 60k and rent for $1200. Can't buy at $50a sqft and then rent for $1 a sqft.

Maybe I could find a slum for 25k and rent it for $500, I just don't feel comfortable investing in an area like that, or dealing with a tenant like that. I plan to have management, so maybe that won't be an issue, I just have no clue. I imagine I can get there after some experience.

This is a property that I could see myself in, if I had to.

What are worthwhile returns for you? Upwards of 10%

Condo in a good area, surrounded by nice homes.

55k house, ( buy at 50k, finance 40k) $191 PI, $46 Taxes. Insurance paid by HOA.

135 hoa, 68 management.68 vacancies, 68 for repairs. 680 rent,

191

46

135

68

68

68

-------

576

-680

104 cash flow

3540 per year cash flow if I pay cash. 7% ROI

If mortgage- 40k @4%, with a down payment of 10k

ROR on 10k in the form of principal for first year is 6.4% increasing about a percent each year for the duration of the 30 year loan. adding a 1% for the $100 cash flow.

would this be ok to get my feet wet?

Thank you!