All Forum Posts by: Eric Armstrong

and it looks like the seller of 1222 Delaware got it for 157K and rehabbed it.

DId you try looking for recently solds with in a mile of the home? Similar bed/baths/ sq ft? You can use redfin, zillow or realtor.com to find this. Don't go by their estimates. Are you sure its a deal if you don't know the ARV?

@Rumen Mladenov is correct, you have 20 days to return. I wouldn't return until tenant is completely out and rent doesn't stop until completely out. If the lease usually ends on the 15 th and they want to leave on the 20th then you prorate. 

@Jered Sturm thx for the insight. The owner is looking to retire out of the RE game.  This property is a rental that he is looking to sell. My plan is to rehab and sell to a homeowner. So he doesn't need all the money right away, but I'm not sure there is much of a tax advantage to getting all the money now as oppressed to a small percentage now and then the remaining balance in no later than 6 months. 

Contact Jason Preston at Accurate Accounting. They are based in Elkton MD. Google them cause BP won't let me add an email address. Jason is a seasoned real estate investor with over 60 rental properties and many flips under his belt. Tell him I sent ya. 

please keep in mind that if you already own a home in the area, you will likely need to put down 20% of the purchase price. 

Also, the house must be in livable condition for the bank to offer the mortgage. If it doesn't have essential items like operating electric, plumbing, heating source, etc... they wont provide the mortgage. Many REO's wont qualify.

You won't be able to use that money for the rehab, you will only be able to use for the purchase of the property. You will need other funds to rehab. You would need to obtain a rehab loan. If you buy a house for 50k or under, you will mostly likely be in a rental area so you would be looking to sell to an investor. 

You don't need a LLC, but it is more safe to purchase with one to protect your personal property and savings. An IRA is totally different, there is plenty of info on BP about them. If you are closing on the 25th it is probably to late to put it in the name of the LLC before you purchase and on your purchase contract you put your name. After you close, it is possible to sign the title over to your LLC after you form it.