All Forum Posts by: John Lopez

We have a property available that would be a great flip or rental (numbers work well for a BRRRR as well). The deal consists of two parcels. Here is a little information on the property.

Location

934 & 938 East White Street Rock Hill, SC (approximately 0.40 acres total)

Home

2 Bedrooms 1 Bathroom

Approximately 1,100 square ft (potential to add a third Bedroom)

Year Built ~1940

Newer HVAC and Windows

Estimated repairs for a flip is $25k to $30K (Anticipated ARV: $85,000 to $90,000)

Estimated repairs for a rental is $20K (Anticipated ARV $70,000 to $75,000)

Link to Video and Photos Below

https://drive.google.com/open?id=1UTCOCP-6kpo5DFrPv2pcLdM0ehP4xGcm

Asking Price - $35,000.00

Reply below if interested or reach out to us directly at [email protected]

I've had an attorney do what's called a "split HUD". The seller only see's your name and the purchase price you agreed on. The other part of the HUD is signed by the end buyer. They will see your name, the assignment fee, and purchase price.

BP, please provide your insights on the following scenario: 

If I owned a property outright and did a cash out refinance where I pulled out 75% equity, my understanding is that would be a "non-taxable event". Then, following the cash out refinance, I signed the deed of the property over to another investor subject to the newly acquired loan. That investor then lease options the property to a home buyer over a 2 year term and the property is sold at the end of the term.  

In this scenario, it would seem that the tax liability would be on the investor to pay the taxes on the profit made during the lease option period and on the sale of the home, but what happens to the tax liability of the original owner that completed the cash out refi? does it vanish?

Thanks in advance for your response     

Nice easy flip or rehab project in Monroe just outside Charlotte, NC. The property is in the HILLCREST neighborhood of Union County just around the corner from Tree Top vineyards: This property is worth around $120k in it's current condition so there is instant equity at purchase.

Estimated rehab costs are between $18k and $24K depending on finishes. A good quality rehab should retail for $155 to $160k. This property is yours for $96,000. 

Year Built: 1959

Bedrooms: 3

Bathrooms: 1.5

Square Footage: ~1680

Photos Here

https://photos.app.goo.gl/ZFJTNPCv7vHTl45Z2

Roof is in great shape

Crawl Space is in great condition

Hardwood floors in most areas (just needs some refinishing)

Great Floor Plan

Full Brick exterior

Inground Pool with 2 year old liner

Plumbing and Electrical have been updated

The "Needs"- (including, but not limited to)

Needs new windows

Needs New Paint

Kitchen and Bathrooms need some updating

Central HVAC still works, but has some age to it

In ground pool has new liner, but may need new pump

To learn more about this Monroe, NC investment property message John 9803520111 or Stas 9802107715 

***We are in the possession of an assignable contract and are selling our equitable interest in the property. Buyer is responsible for verifying all information and performing their own due diligence. Buyer pays all closing costs***

Thanks for posting this. It answers a couple questions I had about a BRRRR project I am currently working on.

It seems that another potential downside of this method is that you somewhat sacrifice the "loan paydown" wealth generation part of the equation. 

Sameer,

I would recommend researching the market a little as already suggested. You could do a quick review of listings in the area to determine if most landlords offer laundry in unit.  Another potential option could be to have a conversation with the prospective tenants.   You could say "The rent is offered at X price without laundry, but we offer an option to "lease" laundry units for an additional monthly charge of $X per month." Be sure to check the renting laws in your area if you decide to go with leased laundry units 

Zain,

I work for an environmental firm.  Some of the work that we do involves assessing and remediating   underground storage tanks.  In some instances, the clean up could easily out pace the 30k to 40k in equity that you stated. 

You have a couple more options on trying to evaluate if a tank is present.  

1) If the property is old, you may be able to identify the presence of a tank on a sanborn map that you could correlate with the anomaly in the field.   

2) use a utility probe rod or a hand auger to dig down to the tank and see if its there. 

3) review old site plans to determine the presence of a tank

4) will the bank allow you to just collect soil and/or groundwater samples adjacent to the tank in lieu of digging it up? 

5) You said the "town" does not have any records, but USTs are typically a state matter.  You should check with NJDEP.   

I can understand your frustration with having to deal with an this "anomaly", those survey contractors are wonderfully generic. 

Let me know if I can be of any additional assistance. 

Given that the property is a auto shop, you should thoroughly review the environmental aspects of the property. Even if they dont have a recent phase I, make sure you conduct your own. 

Depending on the state it's in, you may also be able to check the state environmental database to see if there have been any environmental releases reported at the property. If you need help with this, just reach out. I do this type of thing for a living.

 setforlife(at)biggerpockets(dot)com

I'm always looking. Send me whatever you got!