All Forum Posts by: Account Closed

@Account Closed 

We stopped working on wholesaling for a while.  I'm now focusing on buying and holding manufactured homes. Seattle has a serious need for affordable rentals so it seems like a good area. But check back with me in 3 months as I am just starting out there.

Hello @Natalie Kolodij ...you say you changed your focus....do you mean that you are doing something besides wholesaling or you are targeting different leads. I am new to wholesaling and am looking for any guidance form other local wholesalers...

Kevin Carbon

Time to change your approach!

I saw the property over the weekend.  It is a Cape with 2 bedrooms on 2nd floor but with NO bathroom. 1st floor also has 2 bedrooms and a full bath. The kitchen is missing the cabinets and there is no dishwasher. Every room needs an update - including flooring and paint/windows and doors. My minimum rehab estimate costs is $100k atleast but if I add a full bath on 2nd floor then it will easily add $25K. A half bath is in the basement but it has a space heater and not a permanent Heating vent. In my opinion, if I do not make a 2nd full bath on 2nd floor, then it will be hard to sell (any opinions). Living area is 1230 Sq ft and lot size is only 5K sq Ft. I would have to make an offer between $165k to $170K and expect profit of $45K with a resale value of between $365k to $375K. I am thinking it is not worth the effort since adding a second bath is a major hassle and it will be a big task for me since it will be my first flip. I took my handyman with me and he thinks it is a lot of work but I will also have to hire a plumber/Electrician/flooring guy. I am reluctant, scared and excited. ???!!! I will post the pictures tomorrow.   

@Zacharias Salva - More important than the cap rate is what your personal goals are.  Do you cash flow on the property?  Can you sell it for a substantial gain and get better returns elsewhere?  The success of an investment is in the eye of the beholder and is really depending on your local market.  

For asset protection - read this thread from a few days ago

http://beta.biggerpockets.com/forums/79/topics/131...

Kevin I lived in Oklahoma City for 11 years and have 15 rentals there. What part of the city is the house in. That can make a big difference. My own personal residence is valued at $305,000 and rents for $1995 a month. However it's the worst performing house I own. You can buy houses very cheaply in OKC and I would look at something much cheaper there that would give you a much better cash flow.  You could buy two houses for that price in a decent neighborhood and probably get $2600 in rent. By the time you put a new roof on you will have spent a lot of money. 

I don't usually buy houses in that price range but I bought a triplex in April for $30,000 put $23,000 into it and get $1220 in rent a month. 

Just my 2 cents.

Sara

@Account Closed I'm laughing.  The reason is I'm not disagreeing with you when you say, "if I did this, or that...", and use the example as a reason for the bank to call the note due.  

"...try not paying your property taxes, you don't own anything"

First, I plan on paying my taxes and if I don't the bank will come and take my house.  No wait, the bank has nothing to do with that.  If I don't pay my taxes, the government comes and takes my house.  The bank and I have an agreement.  If I pay them the debt service on time, they let me keep my house.  If I don't, then they can come get it as collateral.  

Second.  It's my house when I buy it.  When I pay off the debt  )bank loan), I release the bank from any rights to MY house.

 It's the proverbial "self fulfilling prophesy"!!!