All Forum Posts by: Jason Green

Looking at a 14 unit apartment complex in 3 buildings. NOI is really solid. List price is $550,000. Question I have, what would financing look like on a multifamily deal? Should I just go to a local bank or seek out FHA money? Thanks in advance.

Ok guys I have heard several people say that condos and townhouses aren't as good long term as SFR. There is a townhouse development in my city (Birmingham, AL) that is fabulous location, built about 4 years ago. They are loft style 3/3 and are very hip and high end. This development only had about 10% of the total units as 3/3 so they are pretty rare to come on the market. Each bedroom has an ensuite bath which I assume would be a major plus for rental if you had a 3 roommate situation.

I can buy these units for $175,000 each with 25% down (banks requirements for investment) at 30 year and cash flow about $475/month on each unit. So my cash investment would be about $98,000 with a cash flow of about $950/month. I think this is a pretty solid return Cash on Cash but certainly not going to set the world on fire.

My question for you guys is, as a long term hold value, am I better off in single family? There is a community of SFR near me that are notoriously good rentals in a great school district and the entry price point is roughly the same. I am just trying to figure out from a long term value play would I be better off in the attached deal or the single family deal.

I did find a quit claim deed from his now ex wife to him for $255k with his name spelled with two "l" instead of one. So looks like to me he is rocking along, pays the house off. He and wife decide to part ways so he leverages the house. He pays her what I assume is half the value of the house. After coming out of pocket $255k to settle the wife in 2013, he probably said hell with it. Amazing what you can piece together about a total strangers life with a few hours at the courthouse 

I did some more digging and have unraveled the chain of mortgages and releases and what not. The mortgage being auctioned actually had an initial balance of $409k in 09. The 87,500 looks like a second mortgage taken the same day most likely to avoid jumbo rates maybe? So with the estimated balance at probably $370 and the tax lien of 8k. Opening bid should be $380k range. The HELOC will get wiped out. FMV is around $500k but after repairs that isn't a lot of meat on the bone for that much risk. House looks to be in great shape but have to assume its neglected. I appreciate all who replied. Really helped me to dig in and unravel this deal.

So a good title search company should uncover everything but in the event that it doesn't, I can't get an type of title insurance can I? Thanks for a the advice. It's really helping me out.

I feel certain it will get bid up im just baffled by letting a house go with that equity. I stopped even going to courthouse auctions about 7 years ago because everything had zero equity so it was a waste of time. 

I haven't seen anything that jumps out on the documents filed. It shows where the guy paid the original mortgage off in 09 then the new mortgage was filed in 2010. Then the judgement and the tax lien. Nothing weird that I can tell. House is in excellent shape and empty. It's just really bizarre to let a house go back that you paid almost 500k for 90k. Only a moron would let something like that happen. I thought maybe the owner died and has no heirs? 

I found a house that is coming up for auction. The house is worth in the $450k range. When I look at the records, the only mortgage is for $87,000. The info on the filed mortgage matches the legal so its the first mortgage being auctioned. About a year later, there is a Judgment filed in favor of that mortgage company for $92,000. The only other liens on the property is property tax lien for $8200. I know that will have to be paid. On the surface this looks like a good opportunity. What other due diligence do I need to do so I am covering my rear. I hear these stories about unrecorded liens and what not but I don't know. I assume I would need to pay the money for a title search but anything else I might be missing? This deal has me spooked because it seems so odd to let a home get foreclosed on with 400k in equity. Don't know why they wouldn't just dump it if they were having financial trouble. Thanks in advance for the help as always.

The house is worth at least $450,000. Guy has an HOA lien and a fire due lien. Hasnt paid either in 7 years. i know right of redemption applies. guess I need to find a real estate attorney

There is a house that is being foreclosed on for failure to pay fire dues. There is no other mortgage on the property. Surely that doesn't mean you can buy this house for the fire due amount does it? I am only familiar with dealing with first mortgage sales but in this case, they paid cash.