All Forum Posts by: Jordan Rahman

It's a SFR in Sand Springs, OK. It was affected by the big flood here recently (May/June in OK,AR). House has been gutted, had remediation, and the owner has contacted me about purchasing it. The majority of the neighborhood was affected, and this would be 1 of the 1st renovations for that neighborhood. FEMA map is effective 8/2009 and shows property has 0.2% chance of annual flood.

3 bed/1.75 baths/1825sf
Purchase price: $50,000
Estimated Renovations: $45,000
ARV(before flood): $150,000

I AM nervous to rebuild. The house was very well constructed and taken care of with many recent updates (electrical is in working order, comm system from shed to house, the lot from street to backyard is about 300 feet, newer huge HVAC unit). All systems are operational except circuits/plates below 27". Should I negotiate a better price to provide a better cushion for myself on the back-end in case the holding period is a bit longer?  Houses were selling in that neighborhood with less than 45 DOM pre-flood.

I'm nervous because the flood JUST happened and the damage is visible throughout the neighborhood. I think after renovations, the house could be worth MORE than $153k, but just not sure how it will be viewed by prospective buyers. Also, even though flood insurance is not currently required, I would still factor it in as a precaution since Mother Nature has a peculiar sense of humor.

Hey @Aref B., I'm looking at a similar deal and would appreciate your input.  

It's a SFR in Sand Springs, OK. It was affected by the big flood here recently (May/June in OK,AR). House has been gutted, had remediation, and the owner has contacted me about purchasing it. The majority of the neighborhood was affected, and this would be 1 of the 1st renovations for that neighborhood. FEMA map is effective 8/2009 and shows property has 0.2% chance of annual flood.

Purchase price: $50,000
Estimated Renovations: $45,000
ARV(before flood): $153,000

I AM nervous to rebuild. The house was very well constructed and taken care of with many recent updates (electrical is in working order, comm system from shed to house, the lot from street to backyard is about 300 feet, newer huge HVAC unit). All systems are operational except circuits/plates below 27".

I'm nervous because the flood JUST happened and the damage is visible throughout the neighborhood. I think after renovations, the house could be worth MORE than $153k, but just not sure how it will be viewed by prospective buyers.

@Antoine Martel Honestly, 15-20k. It's a very spacious duplex, and the recently vacated side already has been cleaned up and new carpet out in upstairs. The duplex a few houses down, but also with a great view, went for $360k 1 yr ago, but not as many sold comps to justify that same price for this one I have.

Breaking this down simply, I got a duplex property at a pretty decent discount (~76% ARV). This property is in a great neighborhood, needs minor repairs and updating ($10k), the seller just wanted to sell and be done with it. It rents for about 1100-1200 each side, but what about looking at this as a flip deal? So, if i'm getting this around 220k and this is worth 285-295k, is this a sound deal to wholetail (fix up few things and sell)? Or... is this speculative?

@Lisa Williams So Lisa, I'm hoping you can clarify for me.. The June Property Tax Auction is for the actual property, right?  Not just bidding/purchasing the tax lien?

The verbiage on the site seems like it's for the property/land, but I wanted to be sure.

The property I'm looking at is off-market, and the seller is willing to sell at $220k, but stated that if there's a buyer's agent, the price would go up. I'm looking to get this property under contract with an FHA loan. I've checked out the property, one unit has a tenant with a 1year lease, and I plan to occupy the other side. The property is in great shape, and is move-in ready.

With this transaction being direct buyer to seller, I'm not exactly sure how I should proceed. This is my 1st deal, and I only want to continue the transaction contingent upon the appraisal showing that the house is worth that much, at least, and the home inspection. 

Is it cost-effective to have a RE attorney draw up the contract/paperwork to protect my interests, and kinda help me navigate?  Is there an alternative, less expensive way to go about this--maybe a website with RE contract templates and the like?

@Edward B. The main reason we will be looking to refinance is to utilize an FHA loan again on our next property, and I know you can't have more than one FHA loan at a time. If we are able, I'd love to use a 5% conventional loan on next property (Owner-occ), since conventional MI can be less expensive than FHA PMI. In that case, I'd send letter to remove FHA PMI on original property, and do 5% conventional on next property.

My fiancee and I are looking to buy our first property, a duplex, and will house-hack it. We are buying with an FHA loan, so we'll have PMI included. She only wants to live there for a maximum of 3 years, but since we're buying it as a buy-and-hold rental, our equity will only grow so fast. I think by only paying the mortgage, it would be year 7 before we built 20% equity. I calculated that if we could pay $300 on top of the mortgage each month, we could have enough equity built up by year 2-3 to refinance out of the FHA loan to a conventional loan. Key Factors... 30 year mortgage, 4.25% interest rate I'm still thinking about getting a 15yr fixed rate, payment would just be higher, but mandatory as well So, I have a couple questions. 1. Is there an easier way to refinance from an FHA loan? 2. What are some of the pros and cons of throwing all that extra moolah on top of the mortgage payment?