All Forum Posts by: Gary M.

A lot of smaller, older homes that I am considering purchasing for rentals feature a floor-furnace or in one case a wall-furnace. The house my wife and I rented when we first got married had a floor furnace in it and I don't remember it being a problem or undesirable. But as a landlord, are there drawbacks to these heating systems?

kim,

They own the property free and clear. They seem set on selling as there are three different people as owners. What are you doing, property management?

Anyway, they turned down my offer. Despite Wheaties's reservations I decided that I had given myself a big enough cushion for repairs and still make it desirable to wholesale buyers in my area.

A friend told about this book. He mentioned that it advocated a strategy of buying 2 houses a year for 10 years. Then selling 10 at the end making the remaining units paid for. Is this legit? Wouldn't the taxes from the sales make it unprofitable? It sounds like a doable plan, but is it for real?

I think that they'd pay that for it as is. But your point about the market is well taken.

I am going to make my first REI offer for a duplex on Monday and I'm worried that I'll blow it. Here's the deal... Grandma died and left her half to 2 grandchildren the other half was left to grandma's brother in CA. I asked them what they wanted for it and they answered that it was appraised in 2/07 for $100,000. It will rent for $450/unit it will need about $18,00 in repairs. (The duplex next door sold last month for $78,00 it needs new HVAC and gen. repairs)

From their appraisal figure I get the feeling that they have high hopes for the sale price. I was hoping to keep it as a rental but I don't think that they would go for an offer of $27,000 (is that right for the 2% rule?). So, I'd like to resell it. That would change my offer to $63,000 no more than $67,000. I feel that if I can't sell it right away it would be able to take care of itself. But, even at $67,000, I can't imagine that they wouldn't think twice about my offer.

The frustrating thing for me is that aside from the online REI class I took and the people here at biggerpockets all of the local investors I know would happily pay $80,000-$85,000 for this unit.

What is your opinion about this deal?

What is the best approach for making an offer?

Thanks,
Gary

One has about 72,000 principal probably an ARV of 90,000. It needs work I'm not sure how much yet. This area rents for about 700/mo 3 br 1 ba.

The other has a 53,000 principal the ARV is... I'm not too sure but rent there is about 550/mo 3 br 1 ba. It also needs work but it does have a metal roof and replacement windows.

Gary

If you don't mind would you please give me your opinion on this? I have recently received call backs on letters I have sent to houses that were vacant. Some of them have mortages that are only a few years old. They want out but the owner really has no room to bring the price down to a level that would be practical for an investment. I could probably find this information out before I send the letter, should I just avoid these or is there a deal here that I don't know about?

Thanks, Gary

Well I haven't given up on this deal yet. It will be auctioned at the end of the month because of back taxes. I have finally gotten a hold of most of the parties involved so it looks like it might move forward. My questions are...

1 ...what is your experience with closing with multiple individuals on the title? And, is it possible to close if they can't be in the same city at the same time?

2 ...I can buy one individuals portion (out of 4) for $1,000 and probably another's as well. The other 2 may be a little more discerning. If they don't go for 1 grand then will I have to give all of them the same amount?

3 ... If the discerning pair want much more should I try to partner with them (they're complete strangers to me) or just walk away? (I could have 1/2 interest in the place for $2,000, plus closing costs, so it's not like wouldn't have any leverage in the deal.)

Thanks for your time and input.
Gary

Thanks, DealFiles

Just so you know, I did search for the answers before I cluttered the forum with another thread.

There is a lot of talk of finding properties that must be sold as a result of divorce and bankruptcy (I know about the NOD to REO event line). What I want to know is, can you market to lawyers who handle divorces and bankruptcy?

How?

Thanks, Gary