All Forum Posts by: Doug B.

Purchased -$58,900 ( under contract )

Flip

1. Reno - $25,000
2. ARV - $115,000 ( Real strong comps )

Net around $25,000 ( 90 days. Numbers on reno and value are vetted and safe)

Hold

1. Reno - $7,500 ( carpet / appliances / hw tank / minor misc.)
2. Rent Value - $950
3. This value $75,000 - $80,000
4. Value 4 years ? ( big unknown but odds after full blown reno $150,00 )

Initial deal is cash. If holding property would do 50% financed.

Would it be better to do the full reno up front and then way options as to selling / renting? Today the market is selling above what I have figured. Another 90 days could be different. Market as to renting we do have a shortage of homes. The renting side is secure for a while.

Wondering If anyone is experiencing Loosing Sec 8 Tenants upon renewal..

Currently have around 10% of tenants that are on Sec. 8 and being hit with loosing them. The tenants part upon renewal is going way up and to a point some can not afford the difference. Their income has not changed or very minimal. Tenants have brought in letters stating - do not sign new lease / you might not be able to afford your part after they go over their status for the new year. Speaking for our tenants the rent is market so that is not the issue.

Looking at properties with Sec. 8 in place and was wondering if need to start looking harder as that income could be lost.

In my County on our renewals Sec. 8 is cutting what they are paying. They have sent letters to tenants requesting them not to sign new lease until they meet and know what they will pay towards their rent.

Was wondering if anyone with Sec. 8 tenants are seeing a cut upon renewal. Speaking of our tenants their income has not change / or very little. What Sec 8 is reducing in payments so far we will start loosing them.

Might be my County or something that has started over the country.

Thanks

The question Need answered is how do you determine the land. The utilities / street's are done / plans are included for 8 additional units on the vacant lots.

The seller's bottom line is $1.25 m for property with 0 help to closing costs. Top dollar for deal my end is $1 m. The vacant land do not see using as building costs are to high and would be hard to sell off. Cheaper to buy something next 5 years or so in this area.

Current expense / income is correct. Room for a little revenue increase and can back out 6 % for management in those figures. Would I be correct with my top dollar ? Would anything come to mind for the land how to value or use.

I need to know if my offer max is to high / or if could find a way to make the vacant lots works. Funding is not the issues / just do not want to be upside down with value. Property values feel will be flat for a few years.

Thanks

Asking Price $1.5 m

Annual Income $145,000

Expenses $ $48,000

Due / Tri Plex's total of 15 units. Built 2008 - 2010. The current operating expense / revenue appears accurate. It has a 8 % Management Fee ( which we are set up to manage in house ) would come off bottom line / or hard cost on my end around 2 %. Has land / lots to add additional 8 units. Current Rents are 5% below current market.

Current thoughts are offering $1 m. Giving no to value to land come close to 1.25% revenue to purchase price.

Location is good / property is in great shape. Vetted property and feel confident all areas are covered. Just needing a little feed back on offer and if land would hold any value if had to go higher on purchase. What kind of financing would be advise on this deal?

Steve

After we accepted bank offer my agent sent 12 emails and a number of phone calls regarding closing this deal.

She had 4 emails answered in which went from waiting on bank - done deal have a signed contract in 2 days. Phone calls just second hand info, but the one this morning the 2nd hand info to me was there is another offer on house.

As for bank the original offer was close to asking and a cash deal and the one on table is a few dollars more with strings attached.

Understand new year and bank can do what there end needs to be, but why would the bank want another 60 days for $950 when they can close immediate.

Small world because this afternoon have a counter offer from same bank on different property that looks acceptable for my end. But a different listing agent and will see what happens. JP is bank and the track record in this area they have closed deals fast and have not had properties on market over 30 days.

The sour taste is from listing agent responding done deal etc and then today get the word he has another offer.

My end was cash close 20 days / as soon as bank was able. Full amount escrow 3 days after signed contract.

The issue was listing agent replied to my agent 4 times that the deal was done. As of today the house has a offer $950.00 more than mine with a financing clause in it. ( Small town and the buyer has a mutual friend of mine is where I found out the $ amount ) And of course the buyer is through listing agent which cuts out him splitting commissions.

On 12 -11-13 had agreed price from bank and sign general as is contract.

My agent received email from listing agent on Jan 2nd just waiting for bank to send official contract, but was a done deal. Should have paper work in 2 days. Just received phone call from my agent this morning that another offer is on table.

While this house has room to go up, just feel like will look for the next deal. We went through the counter and re counter with bank in Nov and we accepted banks offer in early Dec. So being a bit upset / not in mood to now start playing a best and final after bank has already gave us an acceptable offer in early Dec.

Appears listing agent is one to blame and my agent says while their is nothing I can do, but she can report him to the real - board etc. if we don't get a signed contract.

While could play the game of offering more, I think time is worth money also and need to look for next one if we don't get a signed contract.

Any advice on playing this game ? If we were in the early stage I would see having to play for a final number.

Believing next Friday the tenant will have full amount of rent due.

Not realizing everything tenant is saying on why and when they will pay rent is a BIG lie. 99.9% of the time they never keep their end on payment arrangements.

Camera as Richard said SOMEONE who you know that has experience in construction could be a good asset. Long as he does not charge ya would be ideal.

Takes time and experience learning the not obvious things that pops out after your holding the keys. And then having the experience things do happen, but you would learn to have those accounted for so it does not hurt as much.