All Forum Posts by: Casey W.

Thanks for the reply.  I'm thinking you are right, and your advice is what I need to be doing.  I will say though, that I think it was less gambling and more waiting very long periods of time to find a good deal.  The mobile home was livable.  Really not bad at all.  The house I was improving during the redemption period is in a state where they would have to pay back the cost of any permanent (whether essential or not) improvements to the property if they redeemed it, with interest. I just think I got really lucky three times in finding the right deal, and now that I have more money than before I am missing out on greater opportunity to be making at least something off my available cash while I wait on miracle deals. 

Starting with no money in 2017, my wife and I decided we wanted to be cash real estate investors. For personal reasons, we have committed to not borrowing money for any reason. I understand this is contrary to all good real estate investing advice, but just accept I have a mental defect that will never allow me to accept borrowing money and go from there. 

We saved monthly for over a year and in the fall of 2018 we purchased a half acre of land with a 1990s model single wide house trailer on it for $15,000 from a local real estate investor who had abandoned the project after letting it sit on the MLS for a year at 40k and needed money for another project. We did some heavy cleaning and had it sold within a couple of months for $25,000. We took that, continued adding money monthly, and watched the market for another deal. About 6 months later, in May of 2019, we purchased a beat up 3 bed, 1 bath brick home near a college in Florence, Alabama for $35,000 from a bank. We put another $15,000 into it over the course of 6 months while waiting on the right of redemption to expire. Once expired, we sold it for $85k. After Realtor fees and paying ourselves back for some of the work we overspent on, we had $75k in the bank back in February of 2020.

Then, COVID-19 hit. The markets crashed. We are complete amateur investors, but somehow managed to put all of our $75,000 into funds and four weeks later sell it all for $90,000. Now we are looking at what's next. What would you suggest? All I read about is that the fix and flip market is dead. I could probably come across another deal in the next 6 months that would be worth buying into, but am I wasting my time when I should be in other types of real estate investing? I've been discouraged by finding that deals through the ways I was looking before are turning up nothing (REO sites, local auctions). I'm debating trying to do the "we pay cash for houses" campaigns and source our a local buyer. Looking at maybe picking up something to keep, but I can't do anywhere close to the numbers I've been doing in a rental or even VRBO market. Any advice for someone in my shoes?

Haha.. It is really funny that you mentioned that now after this thread has almost died out. Since I first posted this, I have backed out of the deal I was going to do, and I'm now under contract with another property that I close on this month.

It is in a place where the market is expected to perform above the national average, and is a much cheaper house with two rental possibilities. It is a 1200 square foot house and a 1200 square foot business that goes with it in a separate building that are both located on a high traffic 4 lane highway. I got both for $75,000. The business is a mechianic's shop with 6 bays for cars, 2 rooms, and 2 workshops and is heated and cooled with built-in tools and compressors. The house is is need of a little updating, but is in really good condition according to the home inspection I had done. I have already had people contacting me before I close interested in renting out the business portion, and I could also rent the house to another person.

Is this a crazy idea???

It will be both. I plan to live in it until after the redemption date, then fix it up, sell it, and move into my next investment

I am a first time buyer looking to purchase a bank owned foreclosure that is listed with a realtor. It is a 2500 sq ft home inthe nicest neighborhood within 50 miles. It is located in a yacht/country club/marina. Corner lot, in great shape. Hardwood floors throughout, crown molding, wood burning fireplace in living and master bed. 4 bed, 3 bath. Right of redemption date of July 08. It was listed 149 days ago, price dropped about 70 days ago down to $213k, and the realtor said they are looking to do another price drop. It has been inspected for termites and mold. This house is very nice for a foreclosure. All of the appliances except the frigerator were left, and they are almost new. My question is, what questions do I need to ask before making an offer?