All Forum Posts by: Markus Powell

Thanks, BP community

IT seems that this "not so deal" is looking like it may fall apart. I contacted my realtor to take a look at the property and to negotiate on my behalf. I'm thinking he may be able to find a price that works for both of us. 

Worst case is that the property hits that market and I can watch it form there. 

I'm really not in love with this property because I'm not really into rehabs, I was hopeing to capitalise on the crazy apreacation that my area is having. 

Moving forward I will keep looking for a more "move in ready" property that I can househack. My only issue is that properties that meet that criteria are mostly out of my price range or in a bad area.   

And the search continues...

@Matt K. the HOA is $380. The PITI + HOA = $3800.

I am having a hard time estimating rehab cost because im not a contractor, but I am willing to rehab as I go. I know that before moving in I would at least do paint, scrape the ceiling and a deep clean. 

I do think $680 is expensive. 

What do you think would be a good deal on this property?

Hi @Brent Coombs , I assume that since I do not have a realtor yet he would want to represent "both buyer and seller". I would only be OK with that if I found this was a good deal.

You do make a good point, this deal does not get close to the 50% rule, but in my area homes are selling for very high asking prices causing bidding wars.

I was considering this deal because currently, I am paying $2500 for rent. Whereas PITI would be $3800 and I would be able to use the tax advantage of ~1000/month to help supplement that. I could then find housemates to help pay for the rehab.

Also, there is a 2 bed 1.5 baths fully rehabbed unit listed for $585,000 that has the potential to go for up to 610,000.

There is alose a full rehabbed similar3 bed unit valued at 712,000.

I do agree with you about the asking price being close to market value, but I feel if it hits the open market the price may be driven up.

thanks

Markus

Hey, bigger pockets 

I may have stumbled upon my first RE deal in the  SF bay area!! let me know what you think.

Plan:  

Buy and hold, I am looking to move in and possibly house hack a bedroom. ~700/month

About the property: 

4 bed 2.5 bath 1700sq  townhouse off market. The owner/agent is offering it at $680,000 ferm.

Needs:

Full rehab but its livable. 

Rent:

ROM has it as $3500/m

Comps: 

2 bed 1.5bath updated listed at  575,000 (redfin estimates 610,000)

3bed 2.5 bath updated sold 685,000 in April 2017

Also, the seller is a realtor too, I have not agreed to let him represent me as the seller but I'm open to working with him to possibly make the deal work. 

Loan: 

30 year fixed  20% down  4.25 

Let me know what you think. 

thanks MP

Hey BP,

I currently live in San Jose, CA. I am looking to move out of the area  In order to "buy and hold", I am really considering moving to Brentwood, CA where SFHs are more affordable.  My plan:

1. Find a decent place in a good school district.

2. Make sure the mortgage payment is = to or less than market rent.

3. Live in it for 1 year (possible FHA loan)

4. Use equity and saving to buy 2nd home 

5. Rent first home ensuring a positive cash flow

I really want to get in the game but dealing with bay area prices are very intimidating.  Has anyone had any experience with this?

MP

@Dominique Taylor , Thanks for the link. :-)

So as I step up my REI knowledge up I now know that the house hacking model is the best option for me. Now that I know that does anyone have any good spreadsheets I can use to calculate my "best case scenario".

My stats:

I want 2-4 units In the bayarea

Pre-approved for an FHA loan

100k > down payment

Willing to pay up to 3k/month  out of pocket

I would like some kind of spreadsheet so I can "play with the numbers"

Thanks for the help

MP

@Account Closed thanks for the advice, I will look into that meetup. 

Such a good show today. First-time listener and I got hooked. I love her niche and hustle.

 Hi my name is Markus and I just stumbled upon this website and I have to say that I'm in love. I have always wanted to invest in RE but I have been so afraid and overwhelmed about getting started.  Recently I got pre-approved for a home loan wich got me thinking about some sort of RE investment opportunity. I am so glad to find a place where I can find quality education about RE so I can make the most informed decision when I decide to move forward with getting a property. I look forward to fellowshipping with good people and someday adding value to this community.  

This post is the first step in my RE business journey.  

Thaks in advance for all of the basic questions I have. I promise to search the old forms first.

MP

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