All Forum Posts by: Leyla Simsek

@Chris Vail Great breakdown of a proper analysis. Thank you. I used a deal analyzer program and it calculates the maximum offer price, but as I see it is not as specific as your screening so thank you.

The repairs are minor, and I did not consider holding costs so I will remember that next time.

It seems like an iffy situation anyway with the tenants being there, and the owner is set on his price. No deal. On to the next one, I suppose. 

@Larry Turowski Thank you for your insight. I rather be educated than just go out, take action, and put every house for sale under contract just because it is for sale; so thank you for your time.

@Chris Vail 

This is my math; please correct me if I'm missing or did something wrong.

The Profit Potential

Asking price: $155,000

Repairs (estimate): $5,000

Closing costs (estimate): $2500

Property Taxes: $623

Insurance (estimate): $500

Utilities (estimate): $500

Assignment fee: $2500

ARV: $180,000

Total investment: $166,623

Net profit: $13,337

Return on Investment: 8%

(And congrats on your deal, by the way; I came across your post, I hope for the same success as a new investor)

Let me rephrase; 7% ROI.

@Robert Williams Thank you for your time and response. I thought having tenants there seemed off to me. I hadn't considered having the seller "deal with" (for lack of a better phrase) the tenants, so thank you for shedding that light. 

@Larry Turowski .  I understand. I, however, did the analysis after I spoke with him to see if it was even worth putting under contract; I hadn't contacted him back because I needed help understanding the tenant situation. The potential profit for the end buyer would be approximately $12k. Would you consider that a joke? Or better than nothing? 

Good morning,

I'm generally new to real estate investing, and I chose wholesaling as my niche. 

I came across a property which the owner said it was a "perfect fix and flip" opportunity in Sacramento, but later mentioned he still has tenants there. I asked when their lease was up, and he said I'm not sure. What???? 

I was browsing around BP to see if it was possible to "fix and flip" and a property with tenants there; I don't know much about that area and that doesn't make sense to me. 

The only thing I could think of is maybe doing cash for keys to get the tenants out if this really is an issue. 

Anybody with experience in that area have any thoughts about this? Is this common? Would this be something I would wholesale to a person looking for a SFR or a fix-and-flip opportunity?

Thanks in advanced. 

@Frankie Woods 

Hey there,

What a great success story! Thanks for the response. I will be sure to keep reaching out to BiggerPockets when further help is needed, as always. 

Greetings,

I moved to California in 2013 from the good ol' (might I add, inexpensive) First State. My spouse and I are stationed here and may be here for a very long time. 

I'd like to see an opportunity in living in this expensive state. I'd also like to take advantage of our VA loan for our first investment.

It's just not making sense to me to invest in a multifamily unit (since we have to legally live in the property as well) in this area due to the cost of living and it may not bring cashflow.

Any investors in the area who have successfully "house-hacked"? I'd love any advice or input.

I completely agree @Jeff Jamieson - karma. I was very intrigued by that episode about househacking; great show. If I come across anything, I will definitely let you know. 

@Account Closed Thank you as well, I have been paranoid and over-cautious about protecting myself in a deal just because of the experience. As you said, hopefully that was the last time. 

Since I've posted this 4 months ago, I've learned an incredible amount about wholesaling through BP - so thank you for the responses. 

@Manuel Angeles - Rather than an assignment, wouldn't that be (in your situation described) a referral? In June, when I was starting out, I worked with an investor looking for buyers for his many properties; we drafted a contract, he called it a referral since I was not negotiating deals and just referring buyers to him. As I suspected, I was weaseled out of the deal as the "middle-man" and had not seen a cent. 

I am curious as to how you approached that situation, especially in another state.