All Forum Posts by: Maurice D.

if the seller seems in anyway dishonest, there is a chance there isn't full disclosure on the mold.  I'd walk away from a mold property unless a substantial discount is given for remediation and it's clear what part of the home is impacted.

You could tell them they can live in the nice unit at +50  for three months and if they like it will go up to market after that, (or some similar incentive) to get them out of the old unit so you can remodel. give them a "discount" on the nice unit for 1 year? etc

I like @Jonathan R McLaughlin 's explanation.  it would have to be something big and undisclosed, and you typically walk away from that, sometimes the seller will accept (negotiate) but it is a harder approach.   Instead be more thorough when you first walk the property, possibly bring your contractor and make a lower first offer X, because we found (undisclosed) damage Y.   

I'm sure Mortgage folk can chime in, but the fed rate doesn't directly drive mortgage rates, it's the bond yields I thought.

Hi Dan

Winterize the property.  Dallas doesn't get that cold, but last year it took us by surprise..  exterior garden hose bibs need to be covered etc.   You will need everything on for the inspection,  after than you can set you water heater to vacation mode but leave utilities on.  Yes, no need for internet.  Your bill should be minimal.

Great move!  I am actually doing nealy the same, selling one property I have in Colorado Springs, and one in Virginia.  with the cash, I can do fix and flip and start buying rentals in my area (Dallas) for holds/airbnb.  The 1031 idea is good, but cash gives you a little more flexibility in terms of timing,value, or foreclosure auctions etc.

@James Mc Ree examples are great.  the opportunity here is by financing you can use that 110k and buy a second flip with x% down and 40-50k to fix. (doing two flips at once). By buying cash you tie up that money, and lenders typically require 6 months of seasoning so it slows you down.

hi Ray, if you are fairly new to flips, you might want to pass on this as a rehab. 1950 will come with sewer issues, wiring issues, plumbing issue in addition to the very expensive structural repairs. at that price point, offer lot value - demo costs.. The wholesaler will balk. it would be much more fun to build a new small house on there. (if there are other new homes in that street and the build + land cost falls under ARV. How big is the lot?

I am sure some people are are confortable taking a very old house rebuild, but the risk of unknowns could quickly eat up your profit.

I recently finished a 1965 rebuild, and by the time I was done, spent way more than I originally anticipated (it was my first old flip) and if I had to do it again, I would have razed it, and built new.  my street is mixed and now very few old houses are left, one just got razed, not worth fixing. (or better said, more profit in rebuilding a bigger house), the lots are huge here.

I like @Henry Clark 's and @Mary M. 's advice.  Due the due diligence and hold for at least a year and save from the cash flow.  If she wants to continue in real estate she could then even pull some equity or sell to have some startup capital to buy local properties.  It all depends on what her goals are.