All Forum Posts by: Keerthi A.

Nice to hear this.

I was trying to see alternative funding sources, but now I think I will put in a offer with loan and see.

Would HUD prefer a lower value cash offer vs a much higher offer using loan. Or is it highest offer irrespective of the funding.

Lets say, a property is listed at 50K. Would HUD pick up an offer of 52K cash vs 55K loan.

I know cash offers are preffered in the regular REO sales. But how does HUD deal with selecting the offers.

Add me too. I am in the NW burbs too.

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+1 Dawn,

scares the hell out of wanna be landlords like me.

Yes, taxes are very high in the Chicagoland area, one of the highest in the country.

Hard to get returns with numbers like that.

Taking 50% rule.

At $1300 rent,

$650 is expenses, out of which $325 is tax and another $325 for maintainance/vacancy/insurance.

$650/month, translates into a 9.1% cap rate.

This does look like a poor return.

This property might be good flip, might not work out for rental holdings.

Yes, I will get NOO for this. I also would not want to risk going against the rules. I am bidding for multiple units, so I have not yet decided which one to occupy and which one to keep as investment. 2-3 units is what I planned. I will be occupying one of them for sure as I got to live somewhere. It all depends on me winning the bid first which seems a long shot.

Coming to the expenses,

I need to account fot higher maintainance. Not sure what people spend, do you think 100$ maintainance will cover this.

Legal - is it the attroney fee at the beggining or it is for evictions if that happens. I did not account for it.

CPA - I think I can handle taxes myself with Turbo Tax.

Yes, the rent is a range I am not sure what it would be. $1300-$1350 is the right number now. I just added a worst case and best case scenario.

Overall I am not impressed by SF numbers. Condos have HOA but lower taxes and maintainance. Returns seems to be better on condos in my area.

I am sure there might be other locations where the reverse might be true.

Most properties have high reseve price, even on occupied property. They keep auctioning it again if reserve price is not met.

I registered to bid one listing as it was on MLS (REO) for 48.5K before, it was vacant and clean.

I saw it hit the reseve price of around 35K on day two. On the final day the invetsors poured in. I think most people come in at last minute.

I sat near the computer frozen watching the price go up. It strated going 40, 45, 47.5, 50 as the amount went up the min increment dropped all the way from 5K to 2.5K to 1K to 500 to 250. The property finally ended up at 62.5K. My max was 50-52K. I never bid on it.

They also have 2500 fee with no title insurance provided added to the purchase price.

I found sometime people pay more in an auction.

I am also waiting to hear if someone scored a good deal.

I do rent now, so I can move there and live there for few months to satisfy the rule. Six months should do, where I can do small repairs myself and rent it out later.

I do not think they have a time limit. Do they.