All Forum Posts by: Kevin Andrews

when a home is being sold as is during foreclosure should I still go.through a property inspection and have an inspection contingency in my offer?

Thanks @James Stevens and @Garrett Fast for the responses. I'm going to view the property hopefully on monday. I'll get some numbers then and try out the BP calculators

Hi! I am looking at a 4 unit that needs a lot of rehab work. I am planning on keeping it as a buy and hold. What are the numbers or metrics I should be looking for to analyze this deal to keep this as a buy and hold rather than flipping it?

Also don't forget to factor in holding costs. These are the costs of owning the property for whatever amount of time before you sell it. This includes mortgage payment taxes insurance utilities etc... If you think you can have the property ready for sale in 1 month I would probably factor in 3 to 4 months of holding costs to be conservative.  Otherwise the holding costs will eat into your profits. Good luck @Shannon Garces!

When looking at a flip, you would need to have an accurate estimate of the ARV (After Repair Value) of the house, which you can get from a realtor, or doing your own comps online. Also you need to know the repair costs of the house. How much money are you going to have to put into the house to get it to the ARV? Also you probably want to figure in a profit for yourself. With that information you can then figure out what price to offer. A commonly used rule of thumb is the 70% rule.

EXAMPLE: ARV 400000

  REPAIR COST    60000

YOUR PROFIT 30000

400000 * 70% = 280000

280000 - 60000= 220000

220000 - 30000 = 190000 (Offer Price =190000)

This is just an example, but you can plug in your own numbers and go from there

Yes I suppose you would be if the unit for yourself is part of the house you are purchasing. Otherwise if the mortgage company finds out that you are lying to them it could constitute mortgage fraud. I only know because I asked a similar question when I first joined BP.

Hi Brian. Are you going to be living in the house that you purchase in western MA? I believe that is the only way to get the low down payment FHA loan. If you are going to continue living in NY and buying in MA you would have to most likely come up with 20% down payment. Of course there are other ways to finance properties than just your basic bank loan which you can find more information about if you search for "creative financing" here on BP. I'm not familiar with the LLC part of your question so I will leave that for other members to answer but you would most likely want to talk to a lawyer and a CPA to talk about the advantages and disadvantages of an LLC. Goodluck in your search for a property.

welcome @Matt Dupee I personally don't have any experience in wholesaling but there is so much information on BP that you can't go wrong

congratulations to BP and all of the community!

As of today, I have sent out the 30 day termination of tenancy letter as required by my state law. The tenants have until May 31st to move and I regain possession on June 1st. I did not yet extend an offer of cash for keys. I will wait and see what response I get first from the tenant on not renewing the lease. Thanks for the help everyone and I will keep you posted on how everything works out