All Forum Posts by: Christopher Wedde

@Luis Pereiro

Hopefully all went well today with the tenants.

I'm looking at this as a matter of preference. I'm not sure if you're saying you have another property currently being rehabbed though. It comes down to two ways BRRR or not.

1). BRRR the property. The only thing I would check is the cost vs the income of the house. It passes the 1% rule, so are you going to make money on it after the Refi? So you can Refi the house for the 120k for 80% to get 96k then subtract the 50k for an end balance of 46k. Then use that to buy and repair the next one (or just fix if you already have it) and also have a positive cash flow from the property.

2). Sell the property. If it is going to cost more to keep it to rent out, you can sell. Get your 70k and move on to the next. Or if you really need 70k and not 46k.

(closing costs were not added)

@Anthony Angotti

@Jay Hinrichs

@Steve Vaughan

Okay so update. Called the town the house went into foreclosure and was on auction on OCT 7th. No other details after that. Looked at tax records owners haven't paid them for a while. Taxes owned right now is over 13k. Emailed the wholesaler got a phone number, will give him a call later. Also stopped by the property, very run down and not taken care of. For sale signs in the front yard with different phone number (I believe it is the "old" owners), also will give them a call. Tax assessment by the town puts the price at 300k. 180k for the house and 120k for the land. Haven't done comps in the area yet but it seems like 300k is the average asking price for house in the area. Plus there is a new development down the road. This is one of the worst houses in the area right now since it looks like nothing has been done for years and a couple cars are just rotting in the field. Not sure how the inside looks but I'll assume the worst. So it could be very expensive to fix this up. So if I paid the fee, I am looking at 53k to start, with a possible eviction depending on how the "old" owners feel. 140k house and, too throw some numbers, 50k - 100k for repairs. So total costs are 243k - 293k for a place that might go for 280k - 340k. So worst case as of now is a -13k profit (or loss). Could low ball at 90k for the house. If 203k it will have the highest repair cost and if I can find another 53k I can repair most things by myself.

Okay looks like I have some work to do. Some things I never heard of before, granted I haven't heard of much. So I'll start looking into things then. Got a lot to learn on this one. Thank you all for the help! I'll post updates as I find them out.

@Anthony Angotti I will be stopping by the house today after work. The wording that confuses me is "Currently interior is occupied and not available for showing." and "$40,000.00 due to me upon assignment and $140,000 due at closing."

I thought you can send a 24-48 hour notice to tenants and let them know about a walk through.

I am not even sure about the 40k due upon assignment is suppose to mean either.

Saw this deal on Craigslist. What do you guys think?

"c.1800 Colonial style home located on a 1.83± acre corner lot along Route 9. Desirable Town of Madbury. Oyster River School District. Just minutes from UNH Campus and Dover.
2½ story home includes 2,352± SF GLA, 8 RMS, 4 BR, 1½ BA & partial basement
Attached 3-car garage, enclosed porch, vinyl siding, Big back yard with shed and in-ground gunite pool
FHA/oil heat. Private well & septic system.
Assessed value: $301,700. Estimated value after improvements $340,000.00+/-
2015 taxes: $8,327.
Obtained through foreclosure sale. Currently interior is occupied and not available for showing. Offering Assignment of Purchase and Sales Agreement. Closing by November 21, 2016 unless other arrangement can be made with bank. $40,000.00 due to me upon assignment and $140,000 due at closing. Obtain this wonderful home for $180,000.00 .
This is a fast flip for a small profit. If it doesn't sell before closing I will close, do some renovations and more profit upon resale at FMV. This is your opportunity to get in early on the deal I found and make the project and profit yours. Also perfect for home owner to keep and instantly build sweat equity ."

Go to veteransunited about VA loans. Can't post the phone number here.

The VA loan has some rules on what is allowed prior to purchase, not sure iwhat they are after. I have a phone number. When I get home I'll post it here. But VA loan does state a house cannot be more than 4 units. It may contain a common area, however the VA loan won't allow the house to have an area where if you have to pass through a unit's living area to access another unit. As long as you consider the basement a room of your unit you can rent it out.

@David B.

Also curious about this.

@Jerry Padilla Can you buy a house with a VA loan then refinance it with another bank to get your equity out of the house in less than a year? For example if a buy a house with VA for 100k, that is worth 200k, then find a bank to refi it at 80%, which will give me 60k. However, I will have to take 40k, the 20%, to put into the loan. Leaving me with 20k left over in less than a year.

Also do I have to still live in the house for the year to follow the VA rules even if it is under the new loan? Could I buy a second house with the VA loan in the same year?