All Forum Posts by: Chris Eidson

@Beau Fannon@Bob Okenwa@Justin Kane

Thanks guys.  I actually looked at list source and I think it will get me the basic info I need to get started.

I am looking to find off market duplexes and am trying to figure out the best way to get a list of duplex owners to approach.  Other than driving one at a time, looking up owners through tax records, is there a way to get a list of owners to prospect?

@Chris Taylor

Also, keep in mind that many insurance companies do not offer replacement cost if you insure below 80% of replacement cost.  Therefore, if you have a non total loss, you will not be reimbursed for the full cost of repairs, but they will be depreciated.  Make sure when you choose your coverage that you do have replacement cost, or you could be out of pocket a good bit.

@Chris Taylor

Here's the reason you should consider having full replacement cost coverage:

Let's say I have a property in a decent area, but just the lot itself is not highly marketable (very often the case in a B/C neighborhood).  If I have just enough coverage to pay off the mortgage, but not enough to rebuild the home, I'm left with a lot and I lose the cash flow that the property was generating.  Is that the scenario you would like to end up with?

@Steven Holiday

The more you share, the more red flags I see.  You need to look very closely at the "comps" your realtor is providing.  In fact, if you have been working with other realtors, you may ask them to comp that neighborhood, or, at minimum give you their impressions of the area.

@Michael Noto

As mentioned, the real thing you want is for them to have liability insurance, not only to limit your liability exposure for injuries on the property, but, more importantly, to cover your property if they cause damage by starting a fire.  While you may have your own coverage, it could save you some of your out of pocket costs.

The tracking will be the issue.  I don't know what the legality is in GA.

@Steven Holiday

If all of the facts you presented are correct, then it's a great deal. However, the purchase amount sounds like a very class neighborhood. You will have a lot of tenant risk with that. If you are able to determine the real ARV and rehab costs, can know the neighborhood and what your comfort level is, then I would jump on it.

@Steven Holiday

I can certainly understand your skepticism, however, a good deal is a good deal. Now the challenge is how well you know the neighborhoods in an out of state market. The source of the deal should not matter, if you know what the ARV, comps, and/or rent comps are for a property and you can accurately estimate repair costs. In fact, I like an agent who doesn't just look through MLS or send me automated updates from MLS. Local knowledge and connections are things that are impossible to have if you live out of state.

Just to understand how it works, I requested an offer from OD on a home I own.  There offer was below market based on CMAs that I had from 3 realtors about 9%.  The initial offer said nothing of fees, but they did want to schedule an in person meeting.  I chose to pass.  Just the below market offer price would have netted me less than the likely sales price, less commissions in what is a relatively strong sellers market.  The bottom line is they are like a wholesaler, except apparently, there are many hidden additional expenses, that are not openly shared up front.  If you want the convenience, use them.  Just don't think that you aren't paying for that.

@Brandon Ellis

There are major limitations in coverage under the Federal Flood Insurance program that may affect your decision.  First of all, there is no replacement cost coverage.  That means if you have a flood, you will be paid a % of the cost to fully replace items such as flooring, etc.  Additionally, there is no coverage for loss of rental income.  There are numerous other limitations as well.  Bottom line is that you could be out of pocket quite a bit of money in the case of a flood.