All Forum Posts by: Greg Appelt

Welcome!

Buy TSLA 

Investment Info:

Condo buy & hold investment.

Purchase price: $86,000

Townhouse style condo with driveway and garage. 2/2 in gated community.

What made you interested in investing in this type of deal?

After the crash of 2007 (where I happened to sell my home at the top of the market) I found a foreclosure selling for 33% of original value. Purchase with my VA loan intending to become my residence. After fulfilling the commitment, started renting it with 30+% cashflow. I've only had 2 sets of renters since I started renting it. Now I'm trying to get a LOC so I can do more investing!

How did you find this deal and how did you negotiate it?

Bank REO came on the market across the street from where I was renting.

How did you finance this deal?

VA loan

How did you add value to the deal?

Slowly upgrading items once they have been depreciated (appliances)

What was the outcome?

Continuously cash flowing, mortgage getting paid off by renters, property appreciating 150%.

Lessons learned? Challenges?

Use the best lending options you can. Structure your lease so tenants stay forever even if that means being slightly below market. Make sure you put the profits into a reserve account. You never know when you'll need a new AC/ref/water heater.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

So long ago I doubt they are still active.

Investment Info:

Condo fix & flip investment.

Purchase price: $137,700
Cash invested: $32,000
Sale price: $186,000

55+ community. One of the few 2br/2bath units available. Great amenities. I'm doing a full bathroom remodel, new flooring and paint, kitchen update, and general refreshing.

What made you interested in investing in this type of deal?

TBREIA + NetWorth Realty helped me take the first step as a real estate investor. I'm ready for step 2!

How did you find this deal and how did you negotiate it?

NetWorth Realty sends out daily emails with wholesale deals. This one fit my budget.

How did you finance this deal?

$10k personal, $40k self-directed IRA, and the remainder via HML from Complete Lending.

How did you add value to the deal?

Light-medium rehab

What was the outcome?

Pending sale

Lessons learned? Challenges?

Using a self-directed IRA is a great way to not only grow your retirement but can be a very liquid way to have access to 0% capital.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Capital Lending quickly resolved a sticky closing issue caused by 212 Lending's gap in understanding.

As a new investor, I also have this question. I have owned 1 rental property for 14 years and have about 70% equity in it, but BoA will not do a HELOC since it is not my primary residence. An investor friend of mine mentioned that South State Bank will do a commercial line of credit up to 85%. I'm awaiting a call back from one of their loan officers to see if I qualify. I promise to update when I find out more.

 Hi Jeff,  The original mortgage from way back in 1983 has long since been satisfied.  Along with 40 years of homesteading and a max tax-rate-hike of under 3%, the property taxes are rather low for her.  Of course at sale they will be going up a lot. - another factor in my carrying costs.

Thank you for the response Joe. I'm pushing hard on the 70% or ARV minus estimated repairs. I may see if she is willing to go with $210k if an appraisal comes in over $445k. I believe with having a second rental it could, compared to the SFH that have sold near it in the $350-$375 range. I definitely like the idea of a 10yr balloon with the additional interest payments to her being a selling point.

That's exactly the feedback I was hoping for.  She's not currently in a hurry to sell, but her health and that of her son will be changing that urgency.  As for the rate, I will be consider closer to market, but it still needs to cash flow positive.

Thank you Randy. 

I have a unique opportunity on an off-market property. Older home in south St Pete that's just a 2/2 1193sq ft with a 2-story building in back that has 1 studio apartment. The owner's husband passed 3yrs ago and her son is in very poor health (living with her). She's finally accepting that she can't maintain the property but doesn't want to list it.  I was thinking about owner financing. She's currently thinking she can get $350 based on comps, but in reality, the home needs at least $100k in repairs, but could appraise at over $400 if converted to a 3/2 and the studio was brought up to code.  My cash offer currently stands at $165k, but I'm thinking about offering her $200k with 10% down, 90% owner financed @ 3% over 30yr, with a 5yr balloon. A quick reno on the studio and renting it would cover the payment and utilities and a 9-12 month reno on the main property would then have a carrying cost of about $35k depending on the taxes.
Does this sound like a realistic offer? I know 'reasonable' is dependent on the motivation (buyer & seller), but I'd like to know if I'm on track or totally bonkers.