All Forum Posts by: Martha Blumel

HI all! I have a unique situation that is a little outside of the bounds of our typical investing questions.

In the middle of me actively looking for a rental property, I found out that I'm going to be a grandma!! This was a surprise to my daughter, her boyfriend and the rest of the family! However, we are thrilled. 

I live in a townhouse development in West Palm Beach, FL. My daughter and I have lived here since 2000, so I am very familiar with the value, HOA etc. Since she grew up here, we are trying to find her a townhouse in the same development. A place that they can call their own. And a place close enough for grandma (Mimi) to help!

I went onto the property appraiser website and looked up all the NOO landlords in my development and sent them a handwritten (scanned) card, explaining that we were looking for a place to rent, rent-to-own or purchase for cash. I sent out about 100 cards and got back a pretty good response (over 12). Of those 12, two are willing to rent at the lower amount we are looking for and one of them asked me if I was interested in purchasing the townhouse cash and proceeded to tell me he didn't need the money! So... I have decided to present offers to both of them - Cash and Lease Option.

Since I obviously have emotion involved (big no-no), but unavoidable as a grandma! ;) I would love your feedback on my numbers.

The townhouses are your standard South Florida Quads (2br/2-1/2b, 1400sf). They are currently selling for up to $145k, average around $135k in the last 6 months.

Both of the units I am looking at to put offers on, are run down with little-to-no upgrades (built in 1985). Since I have lived here 17 years I am very familiar with the units and these are the numbers I came up with for rehab. I went middle of the road.

12000 - kitchen

4000 - 3 bathrooms

300 - Landscaping & patio

500 - Drywall repair

200 - Paint

15000 - Tile & carpet

3500 -AC & air handler

885 - Replace hurricane impact slider (that is cracked)

2000 - incidentals (outlets, covers, smoke detectors, baseboards, water damage, unexpected, etc.)

$38, 385 - Rehab Total

Average purchase price of recent sales = 

$135,000

  - 38,385  (repair costs)

   96,615 - Existing value

$75k - 80,000 cash offer within 3 weeks (using hard money @ 60% + ARV)

–OR–

$100,000 Lease Option (for 1 year)

$2500 Option Payment

$3550 (1st, last, security, pet deposit - same as rental lease + $25 credit)

$1175 months rent ($25 credit towards purchase)

x 12 months = 14,100 ($300 more than regular rent)

$100,000 (LO purchase price)

      2,500 (option payment)

         300 (rent credits)

$97,200 (to be paid by 3/1/18 at the latest)

Exit strategy is to either refinance myself or have my daughter refinance with FHA

What am I overlooking? Is there anything I need to incorporate into my numbers?

Are there any better options like refinancing with a 203k?

Of course this is not your typical investment, but important none-the-less.  

I appreciate any and all input! Thanks! =)

Thanks Sam. That's great info. I appreciate i

I have been comparing the vast amount of hard money and crowd funding providers for a townhouse that I am interested in purchasing using the BRRR method. I am not totally comfortable just picking one out of thin air, so I would love your feedback on who you use or if you are a lender what your terms are.

I have seen and reached out to a couple private lenders mentioned on the boards already.

The property I am looking at is in my own neighborhood, so I am very familiar with them. They are currently selling for $145k +. The average sales over the last 3 months is $135k.  I am looking to purchase between $75-$95 (starting low with negotiating room). I haven't seen the inside of the unit since he still has tenants, but estimate the repairs from $15k-$25k at most.

It's been over 10 years since I last invested using hard money, so I suppose I would be considered a newbie! ;) The funds I have available are in a SDIRA.

All suggestions to help make this happen are welcomed! Thanks!

Welcome @Tim Ferguson. This is the place to be!   Like you, I've previously taken training programs and honestly find more value in Bigger Pockets. Good luck!

Even though this is an old thread, hoping to get some feedback. We have been in the midst of handyman hell here in WPB. lol  I have gone from word of mouth to even contacting handymen who have ads on Craigslist. Their lack of timely response is pretty worrisome! And quality of work has been "interesting" on some occassions.

I may have to result to placing an ad on Craigslist myself. Does anyone have additional advice of what red flags I should be looking for?

Honeymoon @Jon Huber!?!  Congratulations!

If work cooperates, I will try to make it. It's been a while since I've been down there!

Good job @Account Closed, bringing the translator into the mix.

Hey @Wayne Brooks, I see that you are a short sale specialist.  After a couple weeks the owner has agreed to go with a short sale. I need to get my finances in order, but I was wondering if you can give me any advice on what else to do on my end.

I met with Warren at Title Trust Services a couple weeks ago and they gave me all the paperwork that needs to be filled out to get it started. I have so many questions concerning the process. I would love to speak with you further about possibly working together on this. Thanks!

 No, it definitely doesn't. I will have to explain this to him again.

@Wayne Brooks that is exactly what I was thinking about the QCD idea. But whoever this owner is getting his legal advice from is the one who told him about the SOL.  I researched it last night and found that the law was rewritten.  I have already discussed the short sale as being the only real option. He's just got to realize that the QCD is not going to be an option.

I'm learning a lot from this, that's for sure! Thank God for Bigger Pockets! You guys are the best.