All Forum Posts by: Chris Armstrong

@Matthew Bell

Matthew,

Thanks for reaching out I do appreciate it. I agree with you that building the network is the most important part of this business and I am dilignetly working towards that goal. Initially I thought that flipping was the way for me to get my feet into this market but as I am doing reading and listening to pod casts and talking to my buddy who was a successful flipper/wholesaler (now a buy and hold investor) it makes more sense for me to buy properties that need work, fix them and hold them. The beautiful thing about that strategy is regardless of the market (ARV) if the property is purchased correctly is still works (cash flow), and being stuck in corporate america right now replacing my current income is key.

Dont get me wrong it would be fun and exciting to flip but because of my current cash situation and the market here I'm kind of stuck and if my most recent results are a sign of the time ahead I will be moving my focus to other areas, which I will have to figure out. It would be good to chat sometime though. I will message you. Again, thanks 

@Harvey Anderson

Timing could not be better, I am looking at properties up in that area. Columbia and the midland areas seem to have more accessible opportunity than does the Charleston Market. Charleston is way to hot to play in unless you have a substantial amount of cash because even with full price offers using financing I'm losing on every bid.... 

I too am learning but I will be in touch. 

Thanks 

Chris Armstrong 

@Scott Huggins  coming to find that out the hard way. I think I just lost another one too. Tough but Ill get one soon enough. Thanks  

@Matt McCourry We did not get the house because the other offer was all cash and fast closing. No big deal moving on to the next one. 

@Matt McCourry 

Thanks for the advice and the response with the post. I have made offer on house since the original post and I will have my step dad ( a local home inspector) help me put together a list of things wrong with property to perhaps come back with a little lower number. I do appreciate it and I hope I get this property because I need to get the ball rolling with amassing a portfolio of properties. 

@Russ Scheider I would love to get a more realistic estimate of what rents could be for this suspect house. Any help I can get would be appreciated. 

@John Semanchuk my step dad is a home inspector in this area and I am going to bring him out there to have a look. I was unable to go up into the attic to see the condition of ducts an anything else in the attic. 

@Jay Hinrichs it is 100% in Charleston. 

@John Semanchuk I take it you have found the property. Rents are where it gets tricky. I did a comp search on apartment buildings and homes in the area and for the same size as each unit in the duplex it would not be unreasonable to expect 1000 per month per unit. Now in actuality, the place is on the outskirts of hell and I don't think it would be able to bring that much, probably more than $650-800 per month. Im stuck on this one and I don't think its the "analysis paralysis" as they say. Charleston is a hot market but this thing is over valued. I will put an offer in today but its not going to be a full price offer probably $75K. I do appreciate your response and I am sure repair will be more than I expect. 

Hello again BP,

I am starting out in real estate investing and I have come to my first (of many) crossroads on this path. My question is just because a real estate agent says a property is in the short sale process and the bank has an approved amount does that mean that is the lowest the bank will go? Let me from the situation a bit.

I walked into a duplex today that has 2 units each 3bed/2 bath and each was 1200 sqft. The place was in complete disarray and needed some serious work. Im talking new HVAC, new roof, floors, all appliances, one unit needed new floors (tile cause it can take abuse), mold spots on one wall behind bathroom and to top it all off the previous owner must not have known how trash cans worked or they were a hoarder. So, low ball estimates for repairs are around $25000.00. Im looking to buy and hold this property and rent it out once up to date, but I cannot in my right mind give a full price offer on this. I am thinking about going in at 50% offer and hoping that they will accept but if they cant I hope they counter and just don't ignore my offer completely.

Further, the area this is in is literally a block away from a very nice neighborhood that showed some good signs ( kids playing outside, nicely kept yards, no abandoned properties, no police activity and respectable rents), but this unit kind of sits in a pocket of "potential" to put it nicely. 

Help me out guys and gals, I am itching to pull the trigger and get a project started, the numbers work but this project becomes much more attractive if I can get the property for ever less because its a disaster. 

Ohh yea, the bank wants $85K for the property as is. ARV could be $125k.

Thanks

Chris Armstrong   

@Carl Cure,

Good to hear from you again! Hope you are doing well and that you are finding yourself some deals in and around the area. I will be at the Next lowlands REIA meeting and I hope to see you all there again. Until then best of luck,

Chris Armstrong