All Forum Posts by: James King

Yes the 10k was my original estimate for renovations. I have currently invested around 20k in renovations, partially due to the insurance company requiring I re-shingle the home. The agreed purchase price was 128k of which I paid up front about 33k to cover closing costs and 20% down payment. I guess I need to revise my numbers to include closing costs. The current amount mortgaged is 104k. I used a conventional loan because I thought that to be the best option at the time of purchase. My rent is projected to be $1300/month. I plan to do a cash out refinance in a month or so to recapture some of the initial investment. ARV is around $160k.

Do you have any pointers for me @mathew jordan ?

I am looking as well.

Investment Info:

Single-family residence buy & hold investment in San Antonio.

Purchase price: $128,000
Cash invested: $10,000

3 bed, 2 bath, 1 car garage built in 2005 on .17 acre, fenced in back yard

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

The location is in an area of town where lots of development has been permitted to take place over the next 3-5 years. I anticipate lots of growth and hope it raises the value of the home along with the demand to live in the area. besides being close to town and a desirable floor layout. It was at the right price and I felt comfortable making the repairs myself.

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

It was on the MLS and was already reasonably priced. I did negotiate here and there but as fierce as the market is in this area with cash buyers I was surprised I came away with it under a conventional loan.

How did you finance this deal?

conventional loan with 20% down

How did you add value to the deal?

New trim, doors paint, flooring, concrete patio, countertops.

What was the outcome?

Still under construction I will let you know once we get our first renter

Lessons learned? Challenges?

so far, I wish I would have negotiated more up front but I am still learning and tuition is not free.

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

Shannon Wurster has helped me with several purchases in the area. this just happened to be the first investment property. She is a phenomenal agent who constantly provides feedback and pays attention to requests.

WOW Costin, I really appreciate the input. Due to my gut feeling about the situation and the previously stated concerns and potential cost implications I will be passing on this home.

Thanks Everyone!

I am looking into buying a rental property and just had it inspected by a local foundation repair contractor. I am showing roughly 2" in

deflection from left to right (20' Distance) and about 1" from front to back (60' Distance). I believe the cause is the high side has some

grading issues that need to be fixed to redirect the flow of water away from the foundation. The contractor said I needed 36 Piers and quoted me $19,600 for the repair and made sure that I knew that this did not include plumbing or electrical repairs. I am in San Antonio, TX. I have 3 days left in my option period and plan to go back to the sellers agent to discuss further.

My question is a 2 fold.
#1 should I be super scared of buying this house because of the foundation being out of tolerance? or would it be reasonable to expect the expansive clay to dry out over time after grading is corrected thus fixing the slab?

#2 Does the quote seem high in today's market?

Thanks in advance, this is the first rental property I have been able to win so I hate to let it go if there may be a reasonable solution.

I am looking into buying a rental property and just had it inspected by a local foundation repair contractor. I am showing roughly 2" in deflection from left to right (20' Distance) and about 1" from front to back (60' Distance). I believe the cause is the high side has some grading issues that need to be fixed to redirect the flow of water away from the foundation. The contractor said I needed 36 Piers and quoted me $19,600 for the repair and made sure that I knew that this did not include plumbing or electrical repairs. I am in San Antonio, TX. I have 3 days left in my option period and plan to go back to the sellers agent to discuss further.

My question is a 2 fold.
#1 should I be super scared of buying this house because of the foundation being out of tolerance? or would it be reasonable to expect the expansive clays to dryout over time after grading is corrected thus fixing the slab?
#2 Does the quote seem high in today's market?

Thanks in advance, this is the first rental property I have been able to win so I hate to let it go if there may be a reasonable solution.