All Forum Posts by: Heather Pelletier

Thanks Jim,

FMV in this current market is 121K.

Update,
The asking price was 57K.
We offered 43K
Counter offer was 50K
We counered at 45,500
Now there is another offer on the house for 45K. The offers are so close it's going to go to highest and best, a bidding war. What do you think? Should we offer 48K or walk?

Thanks Guys,
I appreciate it. I thought I had it all figured out (finally) then I remembered closing costs. We'll see how it goes!

Thanks again!
Heather

Please tell me if I'm forgetting something. Do I need to subtract closing costs from my max offer?

FMR (fair market rent) $1000-$1200 (I will use 1k)
50% rent- $500
Subtract 100$ for monthly cash flow = $400 max monthly payment
60K 7% 30years= $399.18/month
Estimate of INITIAL rehab:
4500 furnace
1500 chimney lined
500 flooring (kitchen and bath)
3000 bathroom repair
1000 kitchen repair (cabinets repair and counter)
500 interior paint
300 interior wall

60,000-
11,300 Total

=MAO 48,700

Does anybody else have any information on this topic? I find it interesting as well.

Thanks!
Heather :)

"Also, you will not be able o get any financing on a bank foreclosure. Banks do not give loans on homes that need repairs like foreclosures."

Acutually, this is not true. As far as I know you are able to finance a REO if the furnace is in working order and the house is considered habitable. We have financed a REO before and are about to do it again. Just wanted to clarify.

Hi Andy,

Welcome to Bigger Pockets. Where are you from in MA? We are from Western MA and are always looking to meet people interested in REI. Perhaps you could join your local REIA, we are members and we find the meetings very informative. Have you considered buying a multifamily you could reside in yourself (owner occupied), to me it seems like it might be a good idea for you.

Good luck,
Heather

I think it's a great idea! Perhaps more people will notice this thread now that the holidays are over. I noticed things were quite slow around here in the month of December.

Go make a difference in your own community.

This is a great post Christian. I wish our entire country thought like you. I'd also like to add there are other ways to make a difference if political issues aren't your "thing". Volunteering is a great way to contribute to your local community, especially with so many budget cuts. Schools, hospitals, and non-profit organizations are a good place to start. Thanks for the inspiration!

CONGRATULATIONS!