All Forum Posts by: Grant F.

@Dan Guenther good to know, I won't be able to next week but I'll try to make it in August!

@Nate Santillanes@Sara Mickelson

I was able to make it to the BA real estate Windsor meet up last month, it was great. I won't be able to make the one next week. Just figured more meetups are a good thing!

Yeah, I hear you. I think a Loveland specific group would be great. I just made one one on meetup.com. I set the first one for Wednesday (7/19) at 5:30pm at Backyard Tap. Hope to see you there!

https://www.meetup.com/lovelan...

Is there demand for a new real estate meetup in Loveland, CO? 

I am open to trying! This would make the payments very doable. Thanks for sharing-real estate is inspiring and exciting to me. Ya'll rock! 

@Account Closed Thank you for your thoughts, I appreciate it. I'll let you know how this progresses as it is still early in this process. I am going to meet with the owners when they're back in town. I am definitely cautious right now and see it as an exciting possibility but I'm not expecting anything. No real downside for connecting with the owners with a possible large upside. I'll have to check in on the street at different times. 

They own the property free and clear. I would be borrowing from a HELOC for part of the renovations and paying cash for money down. I was thinking I could do low money down, 5-6% interest with a delay in starting monthly payments for ~6 months (for renovations) as a way to hedge against some of the risks and stop the bleeding so to speak. @Account Closed good point about the rent likely being lower...if I wanted to make this happen maybe I would have to ask them for lower rates as a result and factor in under market rents by about 15% or 20% for the lousy neighbors. I will make sure to do my due diligence with the title/inspection/etc and to be conservative with rent estimates and time frame for renovations. 

Mike, are you suggesting I could pay only principal with no interest for the terms? Based on your formula it looks like it would be ($278,000/360 months)=$772/month to ($298,000/360 months)= $827/month principal only. Can you elaborate at all? I would think I would need to offer 5-6% interest on the money and pay interest as well as principal but may be misunderstanding your point. 

@Marshall Leipprandt yes I've been looking for local deals for awhile and this would be my first investment property. I just kind of fell into it through my daily network of people I see. It might be that I need to make a very low offer that is well within my ability to pay or depending on the inspection report, just walk away. It does blow my mind this place has sat for two full decades. A real time capsule. 

I found an off market 4BR/3BR home in a 'B' neighborhood. The home has sat vacant for 20 years (yikes!) but small stuff has been addressed and maintained. The home ARV is around 450k-500k conservatively but it likely needs ~75k-100k worth of work. I still need to get an official home inspection. The home also has bad neighbors with a distressed property. The owners have a bunch of old stuff left in the house and want it out of their life.

ARV: 450k-500k

Rent: ~2,700/month

~75k-100k renovation

Plan: Buy and hold rental

Second exit strategy: fix and flip

What would you offer them? Any advice or experience for renting with an unsightly neighbor property or repairs with such a long vacancy? I expect renovations to take the better part of 1 year which eats up a lot of opportunity costs with rent.

 Ultimately, I want to make this easy for the owners to sell and prioritize the relationship with them. With the market cooling, rates increasing, and the high renovation costs, I feel that I may be in a position to make a creative offer with seller financing that gets them paid monthly with less money down up front for me. Thoughts?