All Forum Posts by: Jason Chen

Have you considered the fact that this is clearly a horrible deal? Someone should have said it already to prevent her from going into misery. Just LOL @ paying $215,000 with only $1390 total in rent per month. At least if it were $1390 from each side per month, then at least the deal would just merely start to make sense.

If you get into this deal - mark my words, it may very well be a career-ender. Run before the seller literally TAKES YOU TO THE CLEANERS

 WHOA

I found a 4plex with 2 bed/2bath in each unit listed for $79,000!!!

https://www.coldwellbanker.com/property/2920-SE-53RD-CT-OCALA-FL-34480/19130514/detail

The particular location is reasonable, and acceptable with me. It's not prime, but it's good enough. It's under pending now, but I'm not sure what the buyer offered and how much it cost to renovate. Judging by the pictures, let's say $40,000 total (for new kitchens, a new roof, A/C, labor, etc), which is not that bad at all. Assuming the total of everything is $120,000 - $130,000, I'd say this buyer will be getting a deal that is better than 65-75% of comparable deals in Ocala which is a little better than marginal, and therefore doable in my book.

Now for all we know, there might have been a small bidding war (bidding wars are pretty much never big in Ocala, only small), and the property has a $85,000 - $90,000 offer on it, but I doubt it.

Deals like this pop up about 5-6 times a year on the MLS market (rough estimate off my head), and usually a crazy good deal (better than 90% of comparable deals) pop up once a year on the public MLS market.

 but did you do it in a group? its a different story if you did it alone

I originally wrote that as a joke, but now realize that it might be such a bad idea after all...

Step 1: Sell all properties

Step 2: Put 1 million dollars into cryptocurrencies

Step 3: Wait 7 years

Step 4: Collect 100 million dollars

If the seller was smart, they'd offload these properties one or two at a time.

They've basically given away their hand that they believe the market is ripe for SELLING

Good things can happen from this, but I must give you one piece of advice that you cannot take for a grain of salt.

There are no groups of people that are more notorious for shooting themselves in the foot when it comes to real estate than:

A. a group of lawyers

B. a group of doctors/medical staff

C. a group of teachers/professors

For some reason, despite their high IQs and whatnot, they get into horrible deals time and time again, and their real estate careers typically last 1 or 2 deals max.

This doesn't have to happen as long as you're ultra consercative in all estimations and calculations when landing your first deal.

 Sure, my family owns like 5-6 duplexes in Ocala that were purchased for $42,000-$55,000 and each required anywhere from $5,000-$8,000 in renovations. I can show you screenshots off the marion county property appraiser if you want, and edit out some details. 

Now these were all purchased in late 2011- 2015. Even then, there are still $70,000 duplexes for sale, and $130,000 quadplexes for sale in Ocala RIGHT now that you can find online that are not in war zones, but I'd say those are in less than stellar zones. We only purchase one in a mediocre area if the deal is that good.

To prove that these neighborhoods aren't in a war zone, you can see how they were purchased for prices like $100,000+ in 2004-2006. A war zone property wouldn't been able to sell for that much in Ocala. In fact, there aren't any real war zone areas in Ocala except for like 2 or 3 streets max, and even then, they aren't even really war zones.

I really think the banks just goofed and undervalued these properties when they listed them for sale because the appraiser saw "a couple of black dudes passing by in an old car". Seriously.

the 1 bedroom thing isnt a problem then

Find someone more competent.

Also, let's talk about the elephant in the room: the fact that 4 of the units are only 1 bedroom. I would want a 2 bedroom/1bathroom, as those are way more easily rentable and marketable than a 1 bedroom. I don't even like this deal in the first place, unless you're getting it for an insane price.