All Forum Posts by: Jeremy Holcomb

@Ryan D., That’s a tough market when 2% can kill a deal like that. Make sure due diligence is really thorough. Because if there is any hidden surprises it could eat more than that 2%. 

You could use a hml or a bridge loan and then refinance into a portfolio loan. 

Ok here is the deal!

Bought a dilapidated mobile home with a 720 square foot addition on a slab foundation for $4K. I knew when purchasing I would have to rebuild the mobile home. However, after further inspection I will also have to rebuild the addition as well. My options are as follows. 1) Reframe and rebuild both and have a 4BR 2BA. 2) Just rebuild addition and make it a 2BR 1BA. 3) Purchase another used mobile home and place that on the lot. The difference in cost is between $12-15K. Which would you do and why? The rent difference between the 2 & 4 bedrooms is between $200-300/month. I am going to hold onto it long term.

I’m still curious how the county allowed them to get away with it. As it is all inspected at each level from foundation to framing, electrical, insulation, and completion. The only thing I can think of is that they had to know someone. It’s always a game of what are we going to see next doing this. Last month it was a toilet just caulked to the floor with dummy bolts that just sat in the holes unattached. 

Hey Everyone, 

      Just got out here to my last purchased investment. We were doing a walkthrough and tearing out drywall to prepare for our rehab and ran into a big problem on a previously built permitted addition. The walls were built with 2x2’s and 1x4 bracing at the top and bottom turned sideways instead of actual plates. I’m not sure who at the county office approved that work for the previous owners. However, this job just doubled the work load and cost. Always be aware that hidden things can cause headaches. The good part is that this will still be a good investment as we bought it at a great price. 

@Elizabeth Wardecki I found the property online listed for sale. It is located in Palatka. If you want inexpensive properties be ready to do a ton of work. You can find cheap houses all around the country. I explained some of how I find inexpensive houses in another post here on BP. 

To all those wondering where to find low priced deals. They are out there to be had and I am going to give a few of the ways I find them. However, it will take work on your part and possible travel to find these deals. First, If you aren’t afraid of the urban areas they are great to find inexpensive deals in. Most urban areas have less desirable areas and typically lots of abandoned homes. Check with your code enforcement office. They can usually tell you where there are vacant homes with violations. Second, look in older neighborhoods where everyone is a senior citizen. Knock on doors and tell them you are looking for homes to buy. Grandma and Grandpa may know of a neighbor who recently died or relocated to a nursing home. Great way to find off market deals. Third, grab some type of treats and hit every local realtors office and introduce yourself to everyone. Tell them if they come across a house they can’t sell to give you a call. Also, some realtors refuse to list cheap houses as they feel it’s not worth their time. Third way is to go on your county website and search for lis pendens actions. This is the start of the foreclosure process. Another good way to help others and yourself to an off market deal. These are just a few ways I find inexpensive deals.

Everyone needs a home! Some have made life choices to put them in the position they are in. I prefer section 8 tenants for stability. A lot of people have varying opinions about it. I look at this as a business and every business needs customers/cash flow. I personally just purchased my very first investment mobile home on Tuesday. You are just providing a solution to those who can’t  afford more. 

@Account Closed, That purchase price of $4K was a great deal that was listed online. The property is in Palatka, Fl. I’m not sure how many others have found something that inexpensive. I do know most rust belt areas and depressed areas have houses listed for cheap. Also, if you’re  brave enough for a tougher challenge some cities with proof of funds to rehab will sell you a house for a $100 if you rehab it within a certain time frame. It takes a lot of legwork to find those deals. My average day consists of looking at a minimum of a 100 house listings in the areas I buy seven days a week. Out of the entire month I will personally go look at 45 of those listings and close on approximately 3 deals. 

No matter if in state or out of state I use the same criteria. Must have double digit cap rates. I prefer a true 12% rate or higher. I never look at the rates a realtor gives me and calculate all my own numbers. Also, I prefer $300 a door and up of net income.