All Forum Posts by: Kevin Drouillard

wow, thanks everyone for your responses. Of course, everyone's replies got me thinking.At the end of the day, I do feel strongly that I shouldn't get into it. At this point, I can do more due diligence and ask the points that @Michael Noto and @Andreas W. made, like how many people will be living there, quality of the roof, will it be appreciating rapidly. I just feel it would be a waste of time now because the answer to all the points you guys made would most likely make the whole thing not worth it. 

@Michael Noto . You're right about the ill feelings notion, which makes me think to get out now before it gets too far. My only gripe is the appraisal. It makes no sense to pay more for something that's not worth that much. 

@Matt R. , I don't believe that is increasing in value. Even nearby homes average less than $100k, according to Zillow.

I don't really know how much the seller put into renovation that's why I feel it's a bit of a rip off  that he can't take the cut, which is why I'm asking  should I stay or should I go?

this is a working class neighborhood.  Median income is around $60k

Hello All,

I hope everyone is well and doing great in their investments. 

This post is in regards to a turnkey product that I've had under contract for a while and am nearing closing. 

The house is a 4br/3ba. It is in the suburbs of Chicago, in South Holland. The provider/seller and I agreed to a $155k purchase price. It is fully rehabbed, but I'm unsure of the age of the roof. It is supposed to rent to voucher tenants for $2200. Cash flow should be around $500. 

However, the appraisal that was done by their recommended lender says it's worth $143k. The seller doesn't want to sell it to me for that much but has cut off $5k from the asking, totaling $150k purchase price. He doesn't want to give it to me for the $143k because he claims he won't be making much of a profit, which I find hard to believe considering he acquired the house for $40k. Anyway, now I've agreed to still buy the house, considering the potential cash flow and the long-term returns. however, I will need to cover the difference for the down payment, making it a total of $40k down!

Should I continue on or should I leave this deal?

@Jorge Ubalde thanks a bunch for your input. Congratulations on your acquisition which is such a great deal. Yes, looks like I'm going to have to go down there myself! Which is great because I have the next 2 weeks off! Thank you again!

Wonderful @Ned Carey , I appreciate your input and I'll be looking further into those 'areas.' My philosophy is buy-and-hold rentals for working class areas since acquisition costs are lower. Of course, I'm not familiar with Baltimore, so I'm grateful for any guidance, even if its general. Hopefully, soon I can link up with someone there to get a "real feel."

Thanks again!

@Ozzy Sirimsi Truthfully Ozzy, I'm looking for higher cashflow buy and hold rentals, without having to do extensive rehab. Tall order, maybe, but I still am at the preliminary research phase anyway. I only mention those zips because that's a place to start asking, at least. Baltimore natives and residents can hopefully chime in with more specifics. Then I'd go down myself and drive around those hoods, or have a realtor help me.

Thank you @Ola Dantis for the suggestions. That's exactly the kind of guidance I was looking for. In just doing preliminary research, I can at least look into these areas. I'm mainly looking for cashflow as a way to build equity for later, more sophisticated deals. As you guessed, I'd be doing this out of state, which means I'd better be looking into the Hospital areas!

Hello all, I'm just doing my preliminary research on real estate markets. Looking on sites like Zillow and Realtor.com, I see that Baltimore looks to be a possibly profitable place, especially the area codes 21229, 21207, 21217, 21218, and 21206. What do you think of these areas and are there any more to consider?

How much would you say a 4bed 2bath house would rent for in this area? What about land rent, how much does that generally "set you back"?

I couldn't help but notice lots of abandoned homes at the $5,000-$10,000 price. Does that say anything about the economy and investing there?

Overall, what is it like to be a landlord there?

Has anyone recently worked with Profit from Rentals? I've had a house under contract with them for a few months now and I'm just waiting to close. Any experiences with tenants and management?Advice, tips would be phenomenally appreciated! What do you think of the end result and what has been the outcome?