All Forum Posts by: Jackson Seedott

Hi Everyone,

I recently found a potential deal in Detroit for 4 - 2br/1 ba units (multifamily building) in a decent neighborhood from what I have researched. Asking price is $15k, but the listing is FSBO and states that there is an outstanding water bill and taxes to the tune of $45k. Without walking the property myself, I would conservatively estimate that the rehab would be $50k, and from what I've pulled I am estimating this would have an ARV of $95,000. With that being said, given these numbers would the water bill be a deal breaker for you? Following the 70% rule, the asking price gives me flexibility with the rehab budget, but not if I consider the water bill as part of the rehab. I've never dealt with a problem like this before, and I'm wondering if I'd be walking into a trap, or if this is a problem that if solved could benefit me greatly. Thanks in advance for your replies!

@Frank Patalano I just bought my first home six months ago as my single family/primary residence. I listen to every podcast and scan deals on Zillow/realtor etc and run numbers on potential deals a few times a week. At this point it I believe financing is what is holding me back. Dave Ramsey was my first exposure to financial education, so it’s admittedly hard for me to take that leap into finding hard money, taking on an additional mortgage, etc., especially since I used most of my own savings on fixing and improving my private primary residence. If anyone can relate, or has the money but lacks the analysis or “hands on” rehab skills, message me and I would love to talk more!