All Forum Posts by: Keith Homstad

@Trystan Fuglseth

Good morning Trystan. I have looked at numerous houses in crk and the market is fairly difficult right now. Most of the houses that are priced reasonable should be torn down. And the one real estate agent in town is inflating price to the point where cash flow is impossible. I would love to talk though, there are a couple commercial properties that might be worth looking into.

@Ed Zulyevic

Ed I just took a look at your profile and think we should talk! I am on the opposite side of the coin. I would like to invest but can’t find a decent property!

@Nick Giulioni

I think we’re talking about two different properties. The one I reference is local. I have looked at it and know exactly what it needs for repairs. I am not going to fly all over the country looking at homes. It would have to be site unseen and that has me nervous

@Nick Giulioni

I have already read it. Still having a hard time buying something that I have never seen.

@Charles D Cruz the $20k on rehab comes from:

Windows/ exterior doors: $7,000 contractor will do this work.

Appliances: $3,000

Cabinets/kitchen floor: $7,000

New furnace: $3,000 (need to get rid of the fuel oil furnace and switch to NG)

I know someone mentioned the cabinets just need to be painted but they are to far gone for that.

@Cole Raiford

Thank you for the reply. I think you are right, the up front cost is just to high. What market are you in? Are you able to get purchase off the MLS or are you finding the deals off markets?

Hey Adam, Thank you for the reply. So far I am the only one looking at the numbers but if you would take a look I would be very appreciative! One of the properties I am looking at on the MLS is

https://www.realtor.com/realestateandhomes-detail/626-Washington-Ave_Crookston_MN_56716_M81286-12768?ex=MN639488563&view=qv

I am using the following

- $650/month rent (This might be a little on the low side I might be able to get $750)

- $100/month insurance

- $20,000 for repairs

- If I offered $80k that would put me at $100k ARV and I am assuming it would appraise for around $115-120. Needs a kitchen/appliances and a bathroom remodel

$80,000PURCHASE PRICE

Thanks again for the help!

Keith

I have analyzed a ton of deals in every town within 100 miles of where I live and I cannot get to 12% cash on cash return.  Even when I offer half of their asking price I am still only at 8-10% cash on cash and no where near the 1% rental income (of the sale price).  I dont know if I am looking at the wrong or if 12% is unrealistic.  

**I got the 12% from Brandon's pod cast**

I would appreciate any feed back, I am fairly new to rentals and starting to get discouraged. 

Investment Info:

Single-family residence fix & flip investment in East Grand Forks.

Purchase price: $115,000
Cash invested: $30,000

I purchased a crime seen and flipped it over the course of a year (with my wife), while living in the home. It was my intention to flip it and sell it, the problem is my family fell in love with the location. I have modified my stratagy to keep this home as my primary and invest in another flix and hold.... If I ever find one that can cash flow.

How did you find this deal and how did you negotiate it?

I stumbled on it when visiting family.

How did you finance this deal?

home equity line of credit. Once it apprised I used a VA loan

How did you add value to the deal?

A lot of sweat!!!!

What was the outcome?

I have about $170,000 of equity in my home

Lessons learned? Challenges?

You need to have some help. Doesn't matter if it is your wife handing you tools or a contractor you are paying by the hour... You need help

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I wouldn't consider the realtor a professional. This was the worst home buying process I have gone through.