All Forum Posts by: Michael Hines

Thanks for the feedback. We ended up passing on that one because we just didn't have a good feeling about it but found another one that we are working on now. This is another 3-family except its fully occupied so we will see how it goes. 

My wife and I are in the process of purchasing our first mult-family unit. The property has a current tenant at will who has been at the property a long time and is paying well below market rent. Trying to decide whether to keep him as a tenant and how to go about the situation. Please share any advice or resources on managing properties. 

yeah there located in a good neighborhood.

Ok guys so i went to go see the houses and the investor was unable to accompany me so i had to go alone, here is the info.

House 1 :  2bed 1ba , 448 square feet 

ARV 150k

Repairs

 Wasn't able to get into this one the realtor said they changed the lock box. On the outside it looks like it needs new siding because it has stains and dents on it. It has a wooden stairwell that needs to be changed. I looked through the window and the kitchen looked ok it was plain white but I think it would need to be changed as well as the floors. I couldn't see the 2 rooms, It also has a wooden stairwell & deck that needs to be replaced.

My repair estimate = 25k

--------------------------------------------------------------------------------------------------------

House 2 : 2bed 1ba, 956 sq.ft

ARV 180k

Repairs - New bathroom, kitchen and floors throughout, roof isn't bad but it looks like it needs to be changed.

My repair estimate = 30k

----------------------------------------------------------------------------------------------------------------------

House 3 : 1bed 1ba, 504 sq ft

ARV 150K

Repairs : new kitchen, bath, floors throughout. Roof is in decent shape

My repair estimate = 20k

----------------------------------------------------------------------------------------------------------------------

House 4 : 2 bed 1ba, 1058 sq ft

ARV : 200k

Repairs : Roof decent, a few of the shingles were coming off in the middle I don't know if thats a easy fix or not, new floors throughout, bath and kitchen

My repair estimate = 40k

----------------------------------------------------------------------------------------------------------------------

The houses were not in terrible condition they just all seem to be outdated, they were built between 1935 and 1950. 2 out of the 4 houses are currently being rented out. The 1/1 is being rented for $900/mo and the 2/1 is being rented for $1100/mo. The realtor said that the 2/1's would sell for between $229-240k and the 1/1 would sell for around 160k. 

I did a little more research online and didn't see any estimates that high so I lowered the ARV for each property based on comps I found online and that he sent me. There weren't many comps in the area, I don't know if thats a good or bad thing. For my estimates I just multiplied the $25 x the number of square ft and added 5-20k more for each property to be modest because everyone always says the repairs end up costing more than you anticipate. The realtor said builders grade would to fix up the properties based on the type of area it is. These houses are the worst looking houses on the street which is a good thing.

So the back story is one guy owns all 4 properties but got into some financial trouble. He got a new ceptic system in but couldn't pay for it. The receiver put a lien on the property and he has to bring a offer to the judge and if it gets approved then i will be able to purchase the homes. The receiver told my realtor he wants 240k for all the houses so that he can recoup his money for his work plus any fees he has to pay. If i could get these houses for that price it looks like there would be a lot of equity for investors. My goal is to wholesale through a double closing but I'm not sure if i could make it work. 

The realtor wants to meet with me today to structure the offer to give to the receiver to bring to the judge. Should I move forward with the deal ? if so what contingencies should I put in the offer to make sure I'm protected ? Would having tenants in 2 of the homes pose any problems ? What are your thoughts ?

ok ...thanks guys !

Is it possible to that a investor can go behind my back and put a offer on the property without me knowing ? I just have heard stories about these types of things @Chris T.

Hey BP family.... I have a potential deal that I got through a realtor. Its for 4 houses all on the same street, the owner got into some financial trouble so he's motivated. I want to try and wholesale them however I haven't done my first deal yet. i'm setting up a time to go view the properties but I'm not confident in estimating the repair costs. I reached out to a local investor to potentially team up and go view the properties with me and walk me through the deal if it goes through, however i don't have them under contract and there also on the MLS, but for more than double the price I'm going to get them for. Not sure if I should trust them to come with me or try and figure it out on my own. Any suggestions ????

Thanks zach !

Hey guys I need some help constructing a deal. I have a seller that contacted me about possibly selling his home. I was speaking to him and he said that his house is on 5 acres of land so he doesn't think its what I am looking for. I told him it was possible and proceeded to ask him how much he was looking to get for it and he said he didn't know. I want to go see the property and make him a offer and try and wholesale it but I don't know how much the land is worth or how in the world to find out. 

Please Help !!!!

Has anyone ever assigned a property through a realtor from the MLS ? if so what how did you construct the deal with the realtor involved ?