All Forum Posts by: Chris Music

I wouldn't disclose the address without a written contract in place, you don't want the craigslist buyer to undercut you. One way would be to create a separate contract between you and your fellow wholesaler agreeing that you receive a certain fee for finding the buyer, once he gets paid from closing he will pay you your cut. This way your portion is not in the main closing; a deal involving two assignments in between the seller and end buyer would be tricky for any one to close.

Hi, am not very familiar with manufactured homes, just by reading your post though, I would suggest getting a contractor or two to walk through it and give you a bid or at least a solid estimate on the rehab cost.

I agree with Brandon, you are cutting your margins pretty thin, given that it is your first one you would be wise to make very conservative estimates. Probably not enough of a spread for a rehabber, but a cashflow investor might not mind paying a little more if it's in a good rental area.

When you say $100 or $0 I assume that is net of all expenses: taxes, insurance, repairs, vacancy, etc... If this is the case and the property truly balances out why would you invest in it if you aren't banking on appreciation? If you aren't cashflowing appreciation is your only way to make a profit.

Dennis,

Congrats! I know I experienced a slew of emotions after closing on my first rental property, I think that is to be expected. If you are confident in your numbers then have faith that this will be a successful investment, the first of many!

Jose,

Awesome that you are taking steps towards your first rental property! One thing I would point out is that your cash flow isn't as simple as rent minus mortgage. There are lots of other expenses that come along with a rental property and you want to account for them to make sure that the property will truly turn a profit. These expenses include: property insurance, taxes, repairs, property management (include even if you plan to manage yourself) vacancy, etc. One way to do a quick check is the 50% rule (great explanation at this link by Brandon Turner).

BP Nation I can use some advice!

I currently have a SFH that has been on the market for 72 days, median DOM for the county is 48 however it's 30 for the specific zip code. We listed it at 750K which was fair market value, since then we have dropped the price twice and now are at 649K. I have spoken to several agents and they all agree that it's a good price for the house. This is a flip and we have received great feed back on the finished result, I would be inclined to let it sit however I have a hard money loan and making that payment each month isn't fun.

Any ideas of things we can do to spark more interest? I know that listings get "stale" after a while.

Thank you.

Given the size of the house and the fact that you want/need to go upscale the rehab cost could very well price you out of this being a deal. Best bet would be to have a contractor (or 2-3) do a bid for you, they can also give you more info on the possibility of adding additional sqft which would help increase your ARV.

Given that you have a spread of $500K it could be a great deal. What is the square footage? How nice will the finishes need to be based on the neighborhood standard (upscale or normal)? With those two pieces of info you can do an estimate of the rehab cost which should help you decide if it really is a deal. You could also have a contractor walk through the property and give you an estimate based on what you want done.

@Steven Hamilton II great, thanks for the info!