All Forum Posts by: Khoa Ha

@Dustin Bergeron,

I agree with Ray on this one. Even though you have already accounted for the management fee, there will be time that issue with the property come up that need your decision to move forward. Since you will be out of state it can get complicated. If you already losing month each month for it then it does not make sense to keep it at this point. 

Just my curiosity, i noticed you said your loan is $241,900 and your tax is $5,500. With my calculation using property tax of 1.1% the purchase price of your house should be around $500,000. Why you have PMI if the loan amount is around 50% of the value?

KH

Hi @Matthew Olszak,

Thank you for the information. I will sure to check out the permit imprint indicia process. 

Thanks,

KH

Hi @Matthew Olszak,

You mentioned on your answer to the OP that he needs to do at least 200/mailing to get bulk mailing rate of $0.22 each. Can you tell me which service you use to get this rate? The lowest I found is around $0.44 each for 500 postcards. 

Thanks,
KH

@Dave Foster,

I will probably reach out to you when they time come. Thanks for the information. 

KH

@Account Closed

Thanks Karen. Good to know since real estate price around my area (Orange County) is too crazy now. It's time to looking farther away. 

KH

Hi BP,

Just wondering about this quick question. I hope to learn more about the 1031 exchange and was wondering if it is possible to sell a property in CA, apply for the 1031 exchange to buy a property in another state. Is this allow? The following document sound like it is possible for most states.

https://www.1031corp.com/1031-exchange-resources/1...

KH

@Ryan Goggins,

You are right we dont have enough information to know if this will have a negative or positive effect in the traditional market or not. Maybe if we look at if someone that have bid against any of the other service like Redfin or Opendoor can give us some insight on how aggressive they are when buying value-add property. 

KH

@Ryan Goggins,

Actually they hired George Laughton to list and sell their property (stated in the article). And if they want other agent to market this property to their buyer then they will probably need to pay a buyer agent commission as well. 

Also, here is the statement from Zillow CEO in another article “There are several startups and real estate brokerage websites experimenting in this space, but Zillow is the only one that has designed a product to keep the agent involved in every part of the transaction, most notably by giving them the opportunity to secure new listing agreements,” Rascoff said. “Ultimately, Zillow Instant Offers has the potential to deliver the highest intent, highest quality listing leads at scale to our Premier Agents.” - https://www.geekwire.com/2018/zillow-group-will-st...

KH

Hi @Ryan Goggins,

Thank for the input. From what I fee of the article I think that this first house that they purchase might have been for show only and not intended to make any profit out of it. The sellers said they accepted an offer at $410,000 and Zillow show that it will coming on the market for $425,000. If they have to pay an agent to sell this property and the buyer agent as well then the $15,000 margin might not even be enough to cover that (4% commission is $17,000). So no matter how little work they put into this the numbers still don't add up for any typical investor.

KH

Hi BP,

So Zillow have finally entered the buying and selling property business. Here is an article briefly describing how the experience was for Zillow and the home seller: https://www.geekwire.com/2018/inside-look-zillows-...

The article stated that the seller accepted an offer of $410,000 for the house and the Zestimate for it is $414,233. It also have the coming "Coming Soon" note at $425,000 and that Zillow plan to only do some light touch up to the house before putting it back on the market. Also, below is an image I just took from zillow own website. I have circled the house in red.

Personally, from the numbers so far I don't think there is much profit to be made from this house since most of the comps are much lower. With the purchase price of $410,000 I think Zillow have put out a generous offer to make a good impression on future potential seller. This must have been a marketing attempt to get good publicity. Even if they only pay 3% for both the seller and buyer agent to have the property for sale that would have equate to $12,750 ($425,000*3%). This is not counting the cost to acquire the property (excluding the price) and the cost to fix up the property before selling it. I am pretty sure they will need a better margin down the line if they wanted to stay in this game. 

What do you all think?

KH