All Forum Posts by: Collin Cook

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,575
Cash invested: $30,000

2300 ft.² single-family home, three bedrooms and two bath with Grossly oversized master suite and master retreat that We're turning into a fourth bedroom to add value, photos to come soon, brrrr in progress.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,575
Cash invested: $30,000

2300 ft.² single-family home, three bedrooms and two bath with Grossly oversized master suite and master retreat that We're turning into a fourth bedroom to add value, photos to come soon, brrrr in progress.

What made you interested in investing in this type of deal?

The price, area, property, and timing worked for a successful brrrr.

How did you find this deal and how did you negotiate it?

Bank REO and I negotiated based on the properties condition, also due to two prior foreclosures and continued expenses to the bank.

How did you finance this deal?

Hard Money

How did you add value to the deal?

We repaired the foundation, added sump pump, ventilation fan and dehumidification system to crawlspace. We repaired the roof, remodeled master bathroom, added tile to the guest bathroom, sanded and painted all of the cabinets and installed new countertops.We also resurfaced all the hardwood floors, and added tile to the kitchen, bathrooms and laundry floors.

@Sophie Maisel

Hello Sophie I am an Electrician License with the state of California and currently I am living in the state of Texas so I put my license on hold was California a couple of years ago, that said the national electrical changes things in there all the time but based on my last review of it in the subject Of ground fault circuit interruption receptacles you need them (GFCI’s) within 6 feet of water supply, in garages, and out doors, The only exception for this is if you’re not touching the electrical work while doing a remodel or if you install GFCI circuit breakers in the main panel that’s feeding the areas I mentioned above, if you did not have it in the contract that’s not good however the contractor state license board will still have a bone to pick with an electrical contractor to do it less than Acceptable workmanship based on the NEC.

We have around 7k after closing costs.

I own one rental property that we have through owner financing, and we are working on our second, I'm at the back end of escrow on a SFH I plan on using for a rental, A local bank had it as a REO for the last year and before that had to foreclose on two people in the last 5 years so they are tired of it and don't want to create a new loan for it. It needs the pier and beam flooring leveled, a new roof, some flooring, painting and a bunch of cosmetic work (I have gotten estimates), It's a corner house across the street from a park and elementary school in a B- or C neighborhood (comps are 80-120k). I estimated I could do the work for 30k so offered 20k and the bank came back 35.5k which I expected so I counted and we ended up agreeing at $30,575. As I stated we are simply waiting for the appraisal and new survey and we did all the foot work ourself for the most part besides some basic counsel on the contract from our attorney I did not use a real estate agent (learning a lot), and I did use hard money (already have two potential banks that will refi), any last minute advice before we get to the closing table?

50% of a good deal is better than 100% of no deal.

@Alexander Celestina

Just remember if someone drowned in that pool It does not matter how much you’re insurance policy is worth SOMEONE is getting sued.

Property rents in this area do not move that fast in north east Texas, but just like everywhere else they're stable. The investor/ real estate agent who owns this property Lives out of the area and all of his other investments properties (240 Doors) are closer to where his home and business are.   He says he wants to trade up with the 1032 exchange which is why he wants to get rid of this property.  It's also not convenient for his property management company, which he owns as well.

Hello Theresa,

The rents in the area are about $500 to $575, and these are renting for $475 a unit not sure about local rules I will know beforeI will know before squeezing the trigger on this deal that's for sure.

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