All Forum Posts by: Matthew Fortune

@Hattie Dizmond Thanks! That eases my mind a bit. The appraisals have been a couple thousand lower than our selling price on the last 2 flips, so now we are more focused on what appraisers think versus potential buyers.

My wife and I have found a nice older home that the previous owner has done a sub par renovation on. We plan to do a complete remodel like we have in the past with success. The house has wood paneling throughout that we don’t rip out due to there being new interior doors and crown mounding already installed. I’ve talked with a drywall professional that has had success with filling in the cracks and making the paneling appear to be drywall. I would make it know when selling that it was paneling and not drywall. My question is how much will this affect the appraisal? Looking at around 7k to rip it all out and replace with drywall, plus 3-4 weeks of labor. Any advice? 3 bedroom 2 bath in north MS. Will sell around the 130k range.

Thank you all for the reply’s and insight. BiggerPockets is truly a wonderful place for a beginner like myself. 

Follow up:

After settling on a price with the investment company, who owned the house on HUBZU, I received the PSA to sign. My lawyer found a paragraph in it referring to the title. It stated, in simpler terms, that I would be required to buy the property regardless of what a title search found. I didn’t sign it and sent them an email requesting to be able to get a title search before moving forward. But no response as of this morning. 

Is this normal practice for these auction sites? I couldn’t imagine buying a house without making sure it was free and clear first. Am I missing something? Title insurance can’t be given until after a title search has been done, in my understanding. 

I have not signed anything or put down any earnest money yet. Just an email with a “middle man” who works for HUBZU. 

Thanks!

@RealtorCharlie 

Say your example of a long lost heir showing up was to happen and the title is clouded. What would title insurance do for me in that situation? Just trying to wrap my head around it. 

Also, really like your penny wise pound foolish saying. 

Thanks!

Dumb question, but who do I buy it from? Do I see an attorney or are there “title insurance” companies?  Thanks!!

I just won an auction through HUBZU. Usually, I have a real estate agent that handles the paperwork and the agreement forms. The house is owned by an investment company. I will be paying cash for the property, so is there any reason for me to get owner title insurance. I would think the investment company would have all its ducks in a row and they would have made sure there are no liens or other issues with it.  Just reading over the contract and got to wondering. Any advice or insight will be greatly appreciated. Thanks!

Thanks Mike!

The hunting lease is idea is a great idea. That would definitely cover the taxes. 

It is full of a mixture of mature trees. I have had a timber guy look at it and says it could be cut but timber prices are awfully low right now. Plus, I need to look into what kind of taxes I will have to pay in the income generated off the sell of the timber. Any knowledge on that?

My long term goal is to hold it and either sell it for retirement,( counting on appreciation) or cut the timber when I am older and replant. 

I own 224 acres in a rural part of West TN. The property is paid for and right now all it is doing is growing trees and costing me in taxes. I consider it a liability at the time because it is taking money out of my pocket, and not putting any back in. Any advice on transforming all,or some of this property into an income producing asset? 

I live in a small town with a population of under 4000, and a county of around 21000 people. I love it here and would like to begin my rental property adventure here at home. What is the best way to find houses in such a small market. There seems to be a high demand for rentals. I am in the financial position to start with two or three single family houses, just looking for a little advice on how to find the prospective properties. Thanks in advance.