All Forum Posts by: John Blythe

definitely. i could do 25% if it comes to it, just would require more corner cutting/strategy on the upgrades afterwards. 

hey all,

happened upon a very low-cost property that the owners have free and clear. they've been living in one side w their mother in the other unit for twenty some odd years now and are moving to a new house. 

they tried listing it for 40k originally, not even a single walk through. 30k, nearly the same thing. finally got someone interested in it for 28 but then pulled the deal (the listing agent did) because the buyer seemed shady. back on market now and i've been using the listing agent to look at duplex opportunities the last few weeks so he pitched it to me.

checked it out, needs minimal repair (considering the price point it's at) and can pull 550-700 depending on what updates i choose to perform.

the best part of it all is that she may be willing to do owner financing as there is currently only one offer on the table and it's 8k less than what she's wanting. 

all that to say: what are typical terms here? she moves out to her new home the first week of March so has motivation to get rid of this bad boy. then again, she owes nothing on it so it's not a hugely pressing need, either. 

i'm thinking 5-10% down and 6% interest. i could probably afford to drop 9-10k total on the project, including repairs, which is why i wouldn't want to put any more than 10% down initially, i'll need money to get the needed repairs and upgrades handled.

would love to hear your thoughts!

thanks for the tip, alain. i don't care too much about local or not, though i suppose there's a slight preference towards local in the case of a jump ball, so please feel free to message me or post here w their info. 

i'll chat w matt in the next few weeks then as i'll be heading to one of the meets here soon.

thanks!

still figuring that piece out at the moment. most interested in fountain square, irvington, and broad ripple, though i'm open to other areas if the right opportunity provides itself.

hey all,

i viewed a duplex yesterday that requires a load of work and wanted to hear thoughts on it.

I've attached a few pics from the dumper. They don't do its rattiness credit. It'll take a full remodel of the bottom floor (it's two flats). The basement isn't in bad condition, but the wiring is all over the place. Looks like—to the untrained eye—that some work will be required down there to get things up to code. 

It includes a whole other 'house' right behind the primary property which has two other units. The city is wanting to tear it down, they've been fighting to not have to. I don't know any more of the details surrounding that situation. The extra two units may make it a steal. Knocking it down may make it a bust? Or maybe it'll add slight value since it'll allow for a great parking situation for the main property/units instead of being street parking (on a relatively busy street).

They're asking $39,900 for it. It's been on the market for nearly 6 months. I'm sure, given the condition, the possibility of the second-property tear down, and the amount of time on the market thus far that I could get them down to $30k pretty easily, perhaps even lower. I imagine I'll need a solid $60-70k to really make this thing awesome. At the end of the day, though, I'd be paying $100k for a large property (4bd/2ba, 4bd/1ba) or even huge property (if the back 2 units can stay standing) that would be worth $150k conservatively, upwards of $200k based on other sales in the area. 

My primary strategy/goal is a longer term hold, so the cashflow is most important to me. This sort of appreciation is icing on the cake and should make the discussion easier when i meet with the hard money lenders.

 Looks great. I'm interested in finding out more

this is really helpful to see. i'd be interested in the other property class related articles/posts you'd mentioned above having read.

what are your goals, appreciation or rental cashflow?

 grats! how'd you get it down to 67 after closing when the purchase price was 68??

@Jay Hinrichs

posting again cause i was on mobile earlier. 

LOVE this idea. not just in light of my own potential gain, but for the community at large. 

i'd love to be considered for the opportunity. i have been reading up on REI the last few months, have been at BP for about 3-4 weeks, and have several team members already enlisted and in discussions to the end that i successfully navigate the market. one of those team members is part of a local contracting/construction company that provides end to end solutions. we could get this property from zero to one quickly while keeping the BP community abreast of the step by step changes, from decision making to actual implementation.

i'm a little north of Indy in the Fishers area, am involved in various charities (even talking w some local business owners about starting one!), would love to give the $50/mo for the entire hold as a commemoration to it being the entry point to REI, and have the necessary funds to get this up to speed.

thanks for the offer, best of luck to whoever it is that lands the gig, and have an awesome new year everyone! here's the awesome BP community!