All Forum Posts by: Jim Keplinger

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So here's the deal: The house next to mine is about to go up of for auction. The note owed is 132k, the min ask is 135k. Personally, I want it if only to control who moves in. THAT said, I have trouble believing I'm stuck with the asking price, but I don't know a thing about auctions in Indiana (!!!) and I'm not sure what the play here is. I know it has at least a 10k foundation issue...but it's a good piece of land in a desirable neighborhood with a silly growth curve (major teaching hospital being built nearby). SO! Here's the questions:

1. If I had to get this at the 135k is it still worth it?

2. Do Sherrif's auctions typically go under the min-ask price or is bound to go up from there?

The link to the calculator is below. Thoughts? 

*This link comes directly from our calculators, based on information input by the member who posted.

Awesome! Out of touch with other ventures, but I will venture to return!

@Thomas Landis and @Ben Wilkins Thank you for opposing ideas! I really, really appreciate the added insight!

@David Faulkner Great advice! Thank you! I'm still trying to learn the comps and how to do them (especially in such a tiny town), but your point is VERY well received and I'll endeavor to get them right! Thank YOU!

@Aaron Curley That's my thinking as well! I used to live and work in Montchanin just north of you, small world indeed!

@Thomas Landis I suspect I'll get laughed off as well, but it was the smart opening offer, I thought. I would LOVE to meet up with you all, thank you for the invitation! That's the 17th this month, yes?

@Charles Sinn : Assuming that this goes through, yes, it will be my first. And while I do "work" outside of real estate (of which I am a newbie but a dedicated student, my work is a few businesses I own...and operate as little as possible. My goal is to continue my full-time studies into full-time investing. I'm excited to see another face from Bloomington! I'd love to have a coffee and hear your story, perhaps learn from your experiences.

@Andy Rumple : Chuckle! Yes, I have no worries that I will find out soon enough. Eeep!

@Ben Wilkins : Excellent feedback, thank you! I'm ballparking my figures around 20k-30k for the repairs...but it's a very large ballpark and I may have missed some folks in the stands. Besides, I don't expect the current owner to bite at this price...but if she does I'd be ok with that. Thank you!

Thank you, both!

Good Evening BPBT!

So, I pulled the trigger...whether it hits anything or not is completely up in the air tonight...but I have a profound dislike of cowards, so by gum, I ain't gonna be one! (This colloquialism in tribute to my current home in Indiana...please forgive me).

I would LOVE your thoughts, advice, and wisdom!

So, did I shoot the moon? Shoot myself in the foot? Or shoot nothing? Here's the details and my opening offer info:

Two duplexes in south-central Indiana (about 20 miles outside Bloomington) built in 1998 listed for 234k 

• 4 doors, 12 beds, 8 baths. 
• Fully rented at this time, two leases up but already asked to extend. One of the tenants is ripe for eviction. 
• Current rent roll is $2800 gross (~$700 each). This is low for the area, these units can easilly be $800 or $850 each.
• Current owner pays all water, sewage, and trash (that's going away ASAP).
• Roofs are original and show it, they need to go.
• Three HVACS are getting long in the tooth, one installed illegally. 
• Two of the four water heaters are questionable at best.
• One of the units has a "soft" kitchen floor implying water damage.
• All units have carpet (even in the bathrooms) that need to go. 
• The owner has turned down offers of $220k 18 months ago, and $180k a year ago. There has been no offers or interest since (according to the RE Agent).

My offer: 129k based on the rent roll and imminent CAPX. Too high? Too low? Where do I go now? 

Thank you in advance for any and all thoughts!

Your advice, and that of others, forced me to re-examine this deal...which I realized wasn't until further notice. Pity. But there it is. Thank YOU for helping point me in the right direction.

Brad:

AWESOME questions and ones I had to face head on. Some I had considered (traffic rerouting I thought would be good under the circumstances) others I had not fully grasped (the amazing outlay of cash to put in a storage facility worth owning. So, sir, I thank you (and once again everyone else on this thread!)!

I didn't buy it. I'm still convinced it's a good deal for the right buyer...but I am now equally convinced that buyer isn't me. While disappointing that I don't get to make my first investing purchase, I am DELIGHTED to save the money and heartache ya'll so wisely pointed out...risk is one thing, high risk is something else!

Fine! I'm off to an auction tomorrow, we'll see how that goes. :)

Again, my thanks!

Jim