All Forum Posts by: Account Closed

My average CF on a 3/2/2 SFH in southeast Harris County worth about 160k - 190k, at 75% LTV, is about $300 month. That $300 month is after PITI only, actual CF after repairs, maintenance, PITI, and vacancies is about $100 month. So for me that's about $100 a month per house that I could spend on personal living expenses if I wanted to. I have been a member of LU off and on for many years but I have never experienced the $500 - $700 per month of spendable CF that they proclaim on a newly purchased properties at 75% LTV. I ask because I am refinancing a couple of my properties and I'm trying to figure out where to invest the proceeds. Buying more houses with $100 month CF does not excite me too much. Buying properties with $500 - $700 month real actual CF would excite me. So I'm asking other Houston area investors what your typical CF is?

Best I can do for you is verify what my Turnkey Provider in Phoenix AZ says. I get the same thing he discusses in this post and I can't get that in CA. He doesn't contact me unless I can get at least what he discusses here: (He was kicked off BP because he got too detailed, apparently you can't do that on BP) His posts are the ones that say ACCOUNT CLOSED. But, he sent me the checks and the HUD closing statements when I asked. He's for real.

Average Cash Flow Per Door In Phoenix Metro Area

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

0 Votes

Houston, Texas

Originally posted by @Brian Keith McCollough:

Hi all, was wondering what everyone thinks is the best Craigslist scraping tool?

Thanks all

Hmmm, disappointed. Your question asks what's the best "craping" tool and I thought I was gonna learn something. ;-)

2 Votes

Originally posted by @Byron Scott:

Hey BP,

I'm trying to complete my first "subject to" deal. Can anybody help me understand if I have to use an attorney inside of the county or town that the property is in? Both me and the owner lives in a different area than the property. And do I call attorneys and ask do they do "subject to"? or do they use different terminology? Thanks!

First check you bank account and make sure you have enough money to make the payments without fail. Then we need to know what your reason for buying it is. Are you going to live in it, rent it out, rehab and list, sell on lease option; so more direction can be given. You want to find a real estate attorney familiar with local laws to the property. Only a few attorneys know how to do these properly. It isn't a common transaction. Some will tell you it's illegal. You tell them they should get a refund on their law school tuition. ;-) An attorney may know the transaction as Subject To but they may also know it as "taking over his loan". It isn't really an "assumption". With a Subject To the bank is Not involved. With an assumption a bank IS involved. Make sure you get in writing that the seller knows his loan isn't going to get paid off until some point in the future. For sure get a title report. There is a bit more to it but that will get you started.

0 Votes

Originally posted by @Cameron Dirck:

@Charles Carillo thank you for that feedback, it makes perfect sense. When getting pre-approved do they ask for the property or do they give you a dollar amount that they fund?

If you are going to use bank financing, talk to a mortgage broker instead. They have more options. However, get approved first, find out how much you qualify for then go shopping. If you can't close don't make the offer. I'm not sure how you can close on two or more offers is your pre-approval doesn't state that they will spread your loan over multiple properties.

0 Votes

Originally posted by @Alan Robert Litz:

When doing a Subject To deal who is the loan still under or how does it actually work? I have heard two scenarios, and I don't know which one is right. The first is that that the seller keeps the loan under his name. You then pay him and then he pays that debt. The second way I have heard it is you assume the loan from the seller and now you pay that debt. Any help in clarifying this would be greatly appreciated!

Subject to - the lender is not involved, the seller keeps the loan in his name.

Assumption - the buyer has to qualify with the lender and the loan goes into the buyer's name, if he qualifies

2 Votes

Originally posted by @Robert James Heitz:

Is it profitable to buy senior community (55+) properties to rent out? I am looking to buy my first property and want to decide what sector of real estate to focus on.

I am looking to do investing in South Florida rental properties after the market drops.

I've done that profitably in the Phoenix market. You have to look at the HOA costs and rules. Some 55+ are very restrictive.

1 Vote

Originally posted by @Nate Tew:

Investment Info:

Single-family residence fix & flip investment in West Valley.

Purchase price: $155,000
Cash invested: $10,000
Sale price: $255,000

This was purchased subject-to with paying the seller $3K upfront and an additional $12K upon the resale. We put $7K of repairs into it. Simple and straight forward.

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

These are the best. Simple, not a ton of work on the front and back end. Minimal repairs, etc.

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

This seller called our Buy Homes phone number from Google. He was very interested in selling and did not want the hassle of listing. I sat with him and discovered his needs/wants. I met all of them and the deal was done! The best part was we paid $12K of the $15K down after the resale.

How did you finance this deal?

Subject-to

Great job.

0 Votes

Originally posted by @Jacob Graves:

What are your experiences

That's all I do. What are your questions? Lol

0 Votes

Originally posted by @Justin Thorpe:

@Shiloh Lundahl

I stated my experience about Kiyosaki. I never followed his advice or know anyone who did. We have all done well. Thats all.

I will admit I find the guy very smart. He has built an empire telling people how the sky is often blue in color and how it can turn grey every now and then.

If people are willing to pay for what I consider common sense advice, more power to them.

In any case, there was no mention about you in my initial post but you chose to target me personally, question my credibility and my intent to be on BP. How does that work?

@Justin it's hard to take seriously a guy who won't post his picture, his profile (your profile is empty), his experience or his success with properties, in detail. @Shiloh does all of that and you are going to school him? My oh my. Teachers stand in Front of the class proud of what they are there for. You are acting more like the guy who sits in the back and throws spitballs and then says "who, me?" Granted, you have the right to remain anonymous, but you aren't adding anything of value to the conversation that way. Just sayin'

0 Votes

Originally posted by @Jake West:

Purchase price $52,000

Square Feet 1460

Year built 1978

Comps in the area sell between $105,000 (All original) - $145,000 (Completely remodeled

My mother in law recently retired and is in a bad situation. She owes about $47,000 on a house in my local market, Lubbock, TX.

She and her partner are hoarders. On a scale from 1-10 they are definitely a 10.

They recently moved in with their oldest daughter when the pandemic hit and because the house is no longer livable. My wife and I are considering stepping in to help them as well as help our own family. We have had estimates to clean and sanitize for up to $10,000. Once the clean up is complete we will analyze how much repair is needed. We estimate repairs to range from $35,000-$60,000.

The company who gave us estimates to clean, made an offer on the house of $30,000 and say a remodel would cost up to $80,000.

I am curious what you would do and why.

Options:

Clean up the mess and find an investor? Asking price $70k-$78k. Pay mother in law $5k above what is owed. Minus expenses I estimate about $6k-$12k profit
Flip it – Maybe a $10k-$30 profit
Keep it and rent it – Rents for $1,100-$1,200 – House payment of $890-$960

Things to consider:

All renovation money will come from private funding (this would be my first short term flip). I would not be willing to pay a hard money lender considering my inexperience. I am interested in long term and we currently have plans to sell our home in 1-2 years. We have about $150,000 in equity and the plan is to build a 4 plex with our FHA loan. We would live in it for about a year while we build our permanent home.

I am sure there is more pertinent information needed and I’d be happy to elaborate on the details.

So….What would you do and why?

I've done a lot of hoarder houses. Yes, there are lots of them out there. Find out how much a 20 yard dumpster is and hire a couple of high school guys to fill it for you. Might take two guys two days. $500 for the dumpster and $500 for the labor, $1,000. That's a whole lot cheaper than $10,000. Then buy some 5 gallon buckets of primer from Home Depot and have the guys give a coat of paint(primer) to everything. Then you can actually see what you are working with and get sense of what it will look like when it's completed.

Also, take the house Subject To, (take over the loan) give the seller some equity $$$, and if it needs $80,000 of reno on a $145,000 ARV, tell whoever told you that you want him to redo the estimate without the solid gold toilet. A plain porcelain toilet will do.;-) Since you don't mention the scope of work, (roof, termites, AC, water heater, flooring, cabinets, etc) it's hard to get too specific on reno costs. But, I'd guess if I was running the operation it'd be about $15,000 reno for Lubbock for a 1500 sqft in a hoarder neighborhood. You don't put high end design into a property like that especially if it is going to be a rental.

You're on the right track, you've just been talking to the wrong people.

1 Vote

All Forum Posts by: Account Closed

Account Closed has started 12 posts and replied 576 times.

Post: Curious What Everyone's Cash Flow Is

Post: What is the best craping tool

Post: How to complete a subject to deal

Post: Confidence in Making Multiple Offers

Post: Who is the principal under with a Subject To deal?

Post: Investing in 55+ properties

Post: Subject-to Flip: $85K Profit

Post: Any thoughts on how to approach seller financed deals?

Post: Robert Kiyosaki The Lazy way to invest in real estate.

Post: Opinions wanted. Hoarder House... Flip, Wholesale or Hold?