All Forum Posts by: Hayes Mercure

So I've done a first round of handwriting owners of off-market properties that I'm interested in. I plan to do a monthly follow up. For the follow up, I'm not sure what to write. Am I essentially saying the same thing as my initial letter? That I really like the property, I'd love to talk to them about buying it, if they are interested in selling, etc.? Or should it be shorter and more of a "just checking in" type of letter?

Any insight/advice is highly appreciated!

Awesome, @Andrew Angerer! Really appreciate the link. Will check that out. And thank you for your insight on the ARV challenge for duplexes

Hey!

I'm looking at a duplex to BRRRR and am trying to figure out a potential ARV for it. It's actually a triplex, it has two 2br/1ba sides, then a 1br/1ba in the basement.

When looking at sale comps, I'm not sure what to look for. Would I add up all bedrooms(5) and bathrooms(3) and look at a single family home that's the same size? That doesn't seem logical to me, but have no idea. I can't find any duplex sale comps, unfortunately. 

And advice/suggestions would be highly appreciated. Thanks!

@Larry Turowski Gotcha! That all makes sense. You're right. I guess by his tone his sounded really desperate, but that's a great point on the foreclosure...lots of time till that. Thanks so much for your input!

Hey @Larry Turowski! I appreciate your input on this! Yeah, I was thinking about a master lease(sandwich) deal with him for $1200/month since that's what rentals are going for in this area and that's the cost of his loan payment. 

He told me this morning that he owes $120k on the loan. This isn't verified but gives me an idea. 

Is there a world in which I could offer $100K? I could see about finding private funding at a 30 year fixed rate. I'm confident that it would positively cash flow as a rental at that price. 

Thoughts on any of that?

But like you said, may not be anything here and can move on. 

So...

I'm brand new and my deal structuring creativity isn't exactly fine-tuned yet. But I ran across a home 2 days ago and it's a 1st time flipper who is apparently in trouble. It's a fully renovated 3 br/2ba house in an area that I am looking to buy and hold(rentals). 

From what he has told me, he put $150K into the rehab and has a reno loan payment of $1200/month that he can't afford. Said he's in trouble and needs out of it. I'm not sure what the balance is on that loan. He has it listed for $162K but said he will consider all offers at this point. The comps in the area are showing around $150K-155K with rental comps around $1200.

I do have cash(just sold my business) but not enough to pay that much for it. 

My question is...something like this...is there a potential deal here to help solve his problem and come out with a good deal for me as well? Or no? Would borrowing private money at a 30-yr fixed rate be a way of offering him the balance due on the loan and get the home for under market? Or is this a situation where I could structure a rent to own with him? If so, is it legal to rent it from him then turn around and sublet it out or no?

Again, I'm brand new and curious if there's a potential deal here for a win-win. Maybe there's not? Or have I not provided enough info to even begin to think of a deal? 

And advice would be HIGHLY appreicated!

Thanks!

@Andrew Turner Thanks, man! Great insight and I appreciate your response.

@Michael Noto That's great info to consider. Thank you!

Hey! I've only been looking at SFR in the metro Atlanta area for my first buy and hold rental purchase, but recently came across a townhome that looks interesting. It's down to the studs(looks like someone ran out of cash on their rehab), so it would need a pretty good rehab to get it up to speed. I haven't heard much about townhomes as rentals.

Are they a bad idea from an investment standpoint? I know you have to consider HOA fees in your monthly costs but are there any red flags with these? The property is right by the Atlanta airport, which has a great AirBnB market, so I'm thinking maybe that's a route to take for rent income.

Any thoughts/experience on renting a townhome?

@Christopher Orr yeah, a little confusing. I think I'll bet on the "mailing address" as being the correct point of contact and mail it there.