All Forum Posts by: Jim Zatko

Hi, 

I own a property outright. I bought it as a flip, but it hasn't sold. I'm planning on taking out a mortgage and renting it out. Does anyone in the Toledo Area recommend a bank that works well with investors? Does anyone know any banks that will loan you 80% of the appraised value? Thanks!

Jim

Personally I would go with the felony couple. I don't think I would trust that guy with an eviction. He already popped his eviction cherry, so he's likely to do it again.

Originally posted by @Neil Schoepp:

@Jim Zatko 

Jim when you did your calculations did you figure in vacancy, cap ex, and property maintenance. You need to have a reserve fund for when things go wrong. And you need to plug in property maintenance. If you maintain it yourself then your paying yourself for your time, your time is worth something is it not? And if you decide for whatever reason health, job relocation or I just wanna spend more time with the kids then you can hand it off to a PM without fear of loosing money. You already figured into the budget. 

 These are good points

It would cash flow:

Rent: $950

Mortgage: $450

Tax: $150

Insurance : 70

Total monthly cost:: $670

Total cash flow: $280

I'm new to real estate investing and I'm planning on doing it as a side hobby, not a full blown career. I currently have a nice house on my hands. I bought it at Auction.com with cash for 50k, and comps are around 100k. I put in 22k of my cash into it, so I'm all in for about 72k. If I list it I will ask 99k. In my market, you pretty much have to pay for closing cost, ect. So if I list it and pay all of that and the realtor Commision I'm looking to profit about 12-14k. If I keep it, I'm thinking it will appraise for 100k and the bank will loan me 80%, so I could potentially profit 8k from the mortgage, and then put a renter in there and let them pay off the mortgage, and I own this house forever. I'm just looking for some advise/ input.

I just used Realist Beige and I thought it had too much of a pink undertone. I wouldn't use it again.

Originally posted by @Jay Hinrichs:

@Jim Zatko 

  there ya go... is Toledo close enough to drive to or do you have to fly there from were you live?....

Have you retailed a home there before ?   Good luck with it.

 I live about 10 mins from Toledo, just north of the state line. I've sold 2 homes in Michigan, this is my 1st in OH

This forum turned strange really fast. After thinking about it, I'm not going to get involved in a long contract or rent to own situation. I'm just going to fix it up myself. It needs about 15K worth of work.

New cabinets, countertops, carpet, paint everything, 2 new exterior doors, base trim. I got about 50K in it i'll put 15K in it and it should sell for about 90K. I just kicked around these ideas, because if I could make a quick 10K without lifting a finger, or paying contractors, i would.

Originally posted by @Sam B.:

I would recommend the lease option approach with a healthy option fee.  Agree upon the option date (<24mo) and if they fail to close, either renew of they move on.  If they fail to make lease payments, evict.

I think I saw this pop up on CL this morning.  Is this property WLS @Jim Zatko 

 Yes this is the one in WLS. I keep getting calls about Land contract/ rent to own. I would be willing to sell it for less if someone came with cash in hand.

I just bought a flip in toledo, OH. And just for grins i'm trying to wholesale it first to an investor or a family that would like the house at a discount and do the work themselves.  I got this one family that came to look at it. They can get a mortgage, but it might not go through, because there is some work to be done... there is no carpet in the house, there is base trim mission in 2 bedrooms. there are a couple doors that need replaced. So this family is going to try to get a fixer up mortgage. They proposed doing a land contract, and they do all the work themselves, and get a mortgage in a few months. I don't have a problem with them moving in and doing all the work, and if we did a land contract, I would be protected. What type of things should I be cautious about in a deal like this? I'm not sure i'm going to do it, i'm just investigating it.