All Forum Posts by: Marion Edwards

Thanks for all the responses. The $39K ARV was based neighborhood comps but the range was done from within 1 mile vs. 1/4 mile. This was also based on a 60 day look vs. 90 days. I agree that Flint is a challenging landlord gig because the economy in Flint is somewhat worse than most other areas in SE Michigan (except maybe Detroit, Pontiac or Saginaw). At least two of the prospective tenants are active duty Military, which from my own military background, tend to be good bill payers and 6 are section 8 recipients. I plan to screen as carefully as possible, but in the end I know I'm accepting some risk.

Thanks for the referral to the Norris Group. I plan to see what they offer and if its a reasonable option for me, since I plan to make this a rental vs. a sale. I also realize that lender costs could put me over $30K invested but I plan to hold this property for at least 5 years and then exit with with a lease option strategy. Finding a lender for the rehab is definitely the challenge but maybe Tevis has a point in getting my hands "dirty" and finding creative ways to cut the rehab costs. If I can get this down to around $12K, I'll have better options (401K) to get the project funded.

I currently live about 30 miles away from Flint and moving into the house is not really an option for me and my family. I would love to get a rehab grant or loan from the government, but I'm not sure I would qualify. I'll look into it as this is also an excellent suggestion that could possibly bear fruit.

Again, thanks so much for the responses. I learned more today that I did all last month!

The as-is value of the house is right at $15,000. I owe back taxes on the property totaling $4000 and it has a water lien of $500. Most of the renovations are required to make it habitable, so I have to really look hard at the scope of work to cut costs. At this point, I need two things to help me with this project: a lender who will give me a rehab loan for at least 70% of the rehab costs and an insurance company that will insure a vacant property that requires a significant amount of rehab. One positive thing is that I have about a dozen people lined up to rent it after the work is completed. Thanks for your advice, this is a great resource for newbies like myself.

I recently inherited a 1200 square foot 3BR SFR in Flint, Michigan. The house is free and clear with the exception of a water lien and back taxes of $4000. The house has water damage from a leaking roof and I've received renovation estimates of approximately $20,000. I'll have to finance this work as I don't have the cash to get this done. The ARV of the house is only $39,000 but I'd like to rent it out for $700 per month. I'm still a rookie investor and was wondering what you seasoned pros thought about this deal. Thanks in advance.

Thanks

I'm looking to build my business credit and want to get a DUNS number. I understand that D&B requires a SIC code but none of the categories seem to fit for Real Estate Investments. Has anyone in this forum applied for a DUNS number? If so, what SIC Code did you use? Thanks in advance for any replies to my question.

Thanks for the responses Gents. The more I read about Homepath, the less attractive it seems to be as a source of inventory for me. I still intend to make offers, but won't count on it as a primary means to build my business.

I am considering buying a Homepath property as an investment. Some of the properties they offer are in prety good shape and the prices are reasonable when you look at the comps in the area. Does anybody have any advice on buying Homepath properties? Anything input you provide will be greatly appreciated.

Steven,

I intend to rent the property for $850 per month and sell it in 5-7 years. It will take about $4000 to bring it up to code before I can rent it. I am also asking for the deed at closing since this will be a seller held note. Thanks for the response.

I have a potential deal where the property is owned free and clear. The problem is, there are delinquent property taxes for years 2009, 2010, and 2011. All total about $8000. The property is set to be foreclosed on by the county on Feb 1, 2012. The owner doesn't have the money and is looking for a down payment to cover this. The property is only worth around $24,000 and the owner wants a minimum $200 per month for 5 years with a balloon payment. Is this a good deal? If not, do you have any suggestions for structuring it into a good deal. I'm new to this business, so I'm looking for any advice you may have. Thanks in advance.

Aaron,

I think I'll do just that. Thanks!

Marion