All Forum Posts by: Donna M.

I'm a very new investor and being in Hawaii is very discouraging. The home prices here are $750k!! You can't buy a house in a "war zone" here for less than $225k. When I started, I went to so many open houses, passed out my card, put up my website, etc... And everyone said the same thing, "You're crazy to invest in real estate with the economy being so bad!" Even my mom! So, I started trying to find investment properties out of state and was amazed at what I could purchase with 100k. However, my location is becoming a problem. The only research I can do is from my computer and can't do my due diligence, thus I know I'm passing up on great deals. Since I'm just starting out, I don't have a lot of liquid funds. But I do have a whole lot of time. Is it too ambitious for me as a newbie to try out of state investing? :idea:

Oops, so sorry! This is in Rochester! Thanks for the heads up!

My first duplex deal
The previous owner purchased this duplex in 2005 for $25,000 then sold it and carried the note. The person he sold it to defaulted on the loan in 2007 and it took him 15 months and lots of legal fees to get the property back. He didn’t have much information on the property but stated that it would need a new roof, gutters and updating here and there. I was given a quote of $10,000 for repairs but when I did my analysis put it up to 15k. He was asking for 30k and I negotiated and we came to $5000 and me pay the back taxes and water bill, which is $1190.32. Originally, my strategy was to buy and hold but me being in Hawaii is proving quite difficult. I’m finding it hard just securing a property manager! It could rent for $650 for the 2bd and $450 for the 1bd. My next plan was to get a contractor in there, rehab it and sell but if I’m not there 24/7 cracking the whip, who knows when things will be done? Thus, I’m considering wholesaling it.

Analyses:
Buy and hold: Annual GRI 13200 x 50% OE=6600/ 22000 Purchase price & repairs=
30% Cap rate

Buy and rehab: ARV 60000 (conservative)
Purchase Price -6100
Closing Cost Buy (6%) -1200 (3% + 3pts for hard money loan)
Holding Costs -4350 (including ins+ tax)
Rehab Costs -16500 (including 10% cushion)
Closing Cost Sell (6%) -3600 (2%+ 4% Realtor fee)
Profit $28,250 / cash out of pocket $28,150= 100.3% ROI

Seems like a no-brainer but if I just wholesaled, I think it would save me a lot of stress. Any suggestions?
:mrgreen:

Hello Mr. Massaro;
I'm a new investor and hope I can help. I don't know if you were still looking but have found Old School Title is investor friendly. They have an office in Florida but they handle deals across the US.
Sincerely, Donna

Is there a difference between closing with an escrow company or an attorney? My seller says that in his state, they only use lawyers for real estate transactions. I don't know the benefits or downsides of either. Any help would be appreciated.