All Forum Posts by: Josiah Stacy

I have a duplex under contract to purchase in Eaton, OH. I am looking for a cash buyer to take assignment on the contract. Property is currently occupied. It will need some repairs including a current roof leak that needs fixed. The current rents are below market and could be raised. The ARV of the property is around $80k, depending on the level of renovations performed. The property needs about $10k in repairs related to safety concerns (porch decking, roof leak, gutters, windows).

Please reply with any questions about the property, or to schedule a time to see it in person. Cash buyers only, please. 

This 3 bed 2 bath condo with carport on Coach Drive in Kettering is Near Kettering Hospital, The Greene, and is minutes from I-675. It is located in the Kettering School District. It is a third floor unit.

This condo is in need of a cosmetic renovation. It needs new flooring, minor drywall repair, paint, some bathroom remodeling, and a few other small updates. Condos in this development rent for $800+. This could be a great opportunity for a rental, or as a nice home for a DIYer. HOA Fee is $767.09 per quarter (about $256/month). It covers water, trash, and HEAT!!! Coin laundry in building. Information on Coach House Manor Condominiums: http://coachhousemanor.com/ Call 937-583-6643 for more details or to schedule a showing.

3 bed 2 bath condo in a great location in Kettering!!!

3rd floor condo includes carport. 

Unit needs cosmetic repair, including carpet, minor wall patching, paint, and bathroom updates. 

There are plenty of successful landlords operating rentals in this condo development!!

Condo Association fee covers water, trash, and HEAT!!!

I think I already knew the answer, but thanks for shining a light on it for me guys.

Hello all!

I'm working with a seller of a rental property right now who is open to consider owner financing on their property. This will be my first owner financed deal (and my first deal period), and I'm trying to put together some numbers to make a win-win offer on the property, but I'm struggling to find a scenario where I can cash flow. Can anyone provide any advice for what a solid and creative offer could look like? 

Here are the details:

The property is located in rural Ohio. It is a single family, 3 bed, 1 bath, Cape Cod style home with 1372 sq ft of living area, a 2 car detached garage, an unfinished basement, on a corner lot. I've estimated the full market value of the property to be around $80,000, conservatively. The property is not in need of any major repairs. The property is currently rented on a month to month lease at $650/mo. Taxes and insurance are the only landlord paid expenses. Taxes are $77/mo and insurance should be about $75/mo. 

Now, I'm fairly confident that I can raise the rent to $700 without losing the current tenants. In my non-expert opinion, I may be able to rent it out for as much as $800, but I certainly don't want to count on that to make the deal make sense. 

I have access to some capital outside this deal, but anything over about $3k would have to be borrowed through home equity on my own home. 

I've already run the rental property calculator a number of times using various purchase prices and rent amounts. I'm able to make it work for my requirements at $60k purchase with 5% interest over 30 years and 5% down ($3k), at $800 monthly rent.  Using those numbers, with 10% each for vacancy, capital expenditures, and repairs, I'm coming in at just over $100/mo for my cash flow, which is my goal. 

Don't get me wrong, I'm comfortable with this offer, but I'm not sure that the seller will like it. Are there any other strategies I might not have considered here, or am I just grasping for a deal here where one may not exist?

@John Knisely

Thanks everyone for the replies! @Kim Knox, @John Knisely I've sat down with a couple of realtors to discuss the kinds of properties I'm interested in and what my strategy is, narrowing down to specific zip codes, number of bedrooms, etc., but from all of them I keep getting listings in areas I'm not comfortable working in, and properties that don't have much potential to value add. I have stopped using those agents, and I am seeking one who can put some better properties in front of me. I'm also marketing for off-market deals.

There is another factor at play for me, though. My mother is a real estate agent. This has proved very convenient for me as she's able to get me info on properties very quickly, but she doesn't work actively as an agent, as she is also a full time appraiser, so I don't want to bother her to sift through the MLS for me all day long, and I'm more than willing to help another agent get paid if they can bring me a deal worth doing. My mom has offered to set up automated alerts for me, though, so when I sit down with her to set them up, I'm hoping to have some good criteria to plug in so I can get some good potential flips sent to my inbox. We have already set up emails for properties with 2 bedrooms larger than 1000 sq ft in specific zips. I'm just hunting for some suggestions as to how to tell the MLS to send me the right stuff. I like the keywords such as TLC, Handyman, etc. going from the description, but I'm concerned that by going from the description alone I might miss some key deals, so I'm trying to figure out property criteria that would work as well. Are there any specifics anyone can recommend that have worked well to find fix and flip properties, or am I better suited to get exhaustive with descriptors from the agent remarks?

I love the convenience of getting automated MLS alerts from my agent when new properties are listed or prices change, etc., but I seem to have trouble communicating to my agent exactly what criteria I want sent to my inbox. I try saying things like this zip code, that many bedrooms, etc, but agents still seem to be flooding my box with properties way off from what I'm seeking.

Can you offer suggestions as to what MLS automated alerts have yielded good results for investors? I understand it's a broad question, but I'm looking for broad feedback, too.

In a recent BiggerPockets webinar, @Brandon Turner mentioned using the MLS, differently as a source for finding great deals. He provided a couple of ideas for MLS searches to use to find the hidden listed treasures, such as searching for a 2 bedroom house larger than 1000 square feet.

I thought this was an awesome idea, as automated alerts can provide a deal to look at while I'm waiting in line at the store or, ahem, dropping the kids off at the pool, as opposed to mindlessly scrolling through Facebook or Pintrest looking at that neat shelf I'll never build or my friends' latest rants about their opinions. I'm also in a unique position to take advantage of this method of finding deals, as my preferred real estate agent happens to be my mother. I can simply pay her a visit, sit down with her at the computer, and ask her to send me very specific automated emails, and while I'm there we can even thumb through a number of listings. 

I would love to hear some input from the community about other searches that you find fruitful in this high speed market. Even if your suggestions boil down to the same, "be first or last" approach, or something else we've all heard over and over, I'd love to hear what specific searches you've plugged in and followed up on that have yielded insane deals from the MLS.

SHOW ME WHAT YOU GOT! 

@Wayne Brooks Thanks for that information. What would typically constitute a fair offer in the bank/courts eyes? Would I just need a BPO that justifies an offer lower than the judgment amount?

@Kenneth Cowan I think it works a little differently than that. I don't think the bank necessarily takes possession as a result of a foreclosure. When a property is foreclosed, at least in my county in Ohio, it goes to Sheriff's auction, and the bank has the opportunity to bid on it just like anybody else, with the only real difference being that they have something like "store credit" for the amount of the lien they hold on the property (i.e.: say the house was foreclosed with a loan balance of $50k, the bank could bid up to $50k at auction without actually having to pay anything, since they are already owed $50k for the property.) If another bidder outbids the bank, the proceeds left over after the bank is paid off will go to the homeowner.

In a short sale, the bank agrees to forgive their lien on a property for a lesser amount than what is owed. I don't think they would release their lien and just let the homeowner keep the property no strings attached, though I have heard of strange situations like that. Under a short sale, a bank would agree to the lesser amount due to some circumstance such as the owner's inability to make payments. If it can be shown that the home couldn't reasonably be sold for an amount that would satisfy the lien (it's underwater), then the bank could allow the short sale to ease matters on both their books and the borrower.

Same disclaimer as you though..... I'm definitely not an expert on the matter.