All Forum Posts by: Lance Wakefield

@Cameron Price Getting the rent roll and the expenses and just do your best to evaluate it. If you want some help personal message them to me and I would be happy to help you go over them. 

One red flag I see is that you mentioned that some of these calculations were done by a realtor. I would never let a realtor run my numbers for me because their motivation is to make a sale whatever it takes. I am not an apartment expert so I will let those wiser than me go into the numbers. I would just encourage you to run the numbers on your own. 

I would talk to as many banks as it took to get a yes answer, look for banks that work with real estate investors or that do portfolio loans. I would also go to meet ups and meet other investors maybe you can partner etc... Options are always out there for those hungry enough to find them. 

If you know the contractor and when the wiring was done you might be able to do something about it. As far as the seller being responsible for the whole property being up to code that is not the case. When updates are made to a property they are supposed to be inspected and made current on code however if left untouched things are never brought up to code in the event of a sale. 

I would walk away. It can be a huge can of worms and before purchasing a home you usually cannot open drywall to see whats going on behind. So knowing the full extent is impossible. Save deals like this for when you are a little more seasoned. 

I would absolutely use the 3/2 town houses you found as your comps, yours may be worth 3-5k more that those comps due to the extra bathroom. I would consider them pretty close. I would also recommend reviewing your assessment with a couple real estate agents in the area. You could also list here in the forum and simply leave off the address and we can try and help. 

I personally think there is still a lot more room fro growth before texas is in bubble zone. Remember that there are several large companies moving into the state and job growth is still on the rise. 

I would assume in areas that do have zoning that needs to be considered you would be fine in areas that are zoned for trailer parks. I was curious how much these cost to build per sq ft and how many sq ft they average? 

The short answer is no. As oil prices have been dropping over the last year or so home prices in Texas have been climbing. Texas has a very diverse economy now because of that oil no longer has the effect it once had on the economy here. 

Sounds like there is no deal at all here to me. The mold problem would have to be taken care of before tenants could move in or before it could be sold to a conventional buyer.  If you "subject to" the property you still have to come out of pocket 25k for the mold removal at a very minimum (assuming the rest of the house is livable). Putting that kind of money into the property you may as well put 25k down on a fully renovated property for 185k and have no problems to deal with. 

With purchase at 149 and mold at 25 you're sitting at 174 

If you sell for 185 less 8% for closing costs you are only left with about 170k AND you still haven't done the rehab or cleared a profit. 

Bottom line turn and run the other way.