All Forum Posts by: Matthew Konkel

Here is what I know so far:

Medicaid has a lien on the house for $40,000 and is making her sell it.

She owns the house outright and hasn’t lived in the house for about 4 years

Last year they did buy a new stove, dishwasher and furnace (not sure why) 

The mom wants the house sold fast and wants about $12,000 extra cash for herself.

The house: 

Is a 2 bedroom, 1 bath

lot size of about 9,000 sqft

house is about 800 Sqft

Has a lot of deferred maintenance 

They are nervous about doing an inspection, which makes me suspicious 

The house next door is on the market for $215,000, but is a 3 bedroom 2 bath. 

So here is my plan:

I take out a loan for 40,000 and buy the house (not sure if Medicaid will let them sell it for below market value)

I then refinance the house and pull out a second mortgage or a line of credit of about 100,000. I use that money to pay off my original loan, give the mom $12,000 and use the rest to fix up the house, since no one has lived there for about 4 years. 

Depending on the numbers I would either flip the house or hold it as a rental. 

Any thoughts on the plan or problems you see arising during the process? I know very little about liens.  

Sounds like a plan! Thank you for the Advice. 

At what point should I consider starting an LLC as a real estate agent? Is it better to get a couple deals done first or to have an LLC formed before I sell your first house?

@Paul DeSilva-That’s Crazy! WSU announced a couple weeks ago that students are going to come back in for the Fall semester. With that being said we are averaging 3 new cases a day, so I would not be surprised if that changed. Definitely something to watch before I Buy!

@Steve Potash I know apartments here do a 12 month lease, I could not find any that do a 9 month lease, which may be a good niche I could fill. I will have to do some research on multi family rentals.

@Brett G.

That’s a huge pro, I would love to cut down the vacancy period! It would also be nice to get a little more for rents. Thanks for the input, very helpful!  

Hey everyone, 

I was looking into buying a duplex or single family home in a small college town of about 20,000 people and the school size is about 30,000. During the summer 90% of the university students leave, not sure if that means much if I advertise a 12 month lease. The town revolves about the University not to much here besides the University and a engineering facility. 

Just wondering everyones pros and cons of buying in a college town!