All Forum Posts by: Michael S.

Demand for any real estate in this area is still absolutely crazy; I am not in the MFH market (only do SFH), so I can't give you specific thoughts on how MFH will hold up over the next 90 days. That said, if the numbers work...

There is no "plan B". The plan remains the same now as it did years ago - generate revenue from the W-2 job, use the capital to support our LLC properties should we see the need for repairs or defaults occur on rental payments, use the capital to find deals as they occur, and avoid becoming over leveraged.

As my business partner and I both have full time W-2 jobs not in the field of real estate, having our agent has been quite essential in the growth of our LLC's property holdings, as well as finding us off market deals. We will continue to have her as our agent indefinitely. I could see where someone who does real estate full time may no longer need an agent; but for us, she is an essential part of the "team".

Since you seem conflicted to sell at an offer of 40k, then counter the buyer with an offer to sell at 50k.  Worse thing they can tell you is no, and then you move forward with your planned rehab.  

Huntsville/Madison Alabama remains a ridiculously strong sellers market.  Inventory remains non-existant.

@Jordan Pothier - I am going to second what @Caleb Heimsoth said about the foundation repair - for your first investment property, I would stay away from a house with significant foundation issues. The costs could spiral out of control quickly, and some subcontractors have a "nose" for first time investors.  On our first property, we had some electrical issues that needed to be addressed - in retrospect, we got taken for ride by the electrician - yes, he did the work correctly, thankfully - but clearly overbilled for his time and took us for over a grand more than it should have cost based on our experience subsequently.  

No matter how good or bad the property is, your first property will be the one you likely will make the most mistakes with, and conversely, learn the most from.  A foundation repair is not the time for this to occur in my opinion.  

I would not do this deal for 3 reasons:

1.  The point made above that if the folks flipping the house didn't address the foundation, then what else was not addressed correctly?  Electrical?  Plumbing?  Sewer?

2.  You could potentially spend an enormous amount of time and money if this issues does not get rectified correctly the first time, especially since you are OOS.

3.  I do not know where in MO this is located - but if the inventory in this location is adequate, you will probably have better opportunities present themselves in about 1 to 2 months given what is going on with the economy.  

I agree with Ruth that Huntsville is great area - but we have zero inventory right now, so it is a ridiculously strong sellers market here presently.  

@Kris Schonewill - there is zero inventory in Huntsville/Madison right now, unless you want C/D class, which I would not recommend right now in the current COVID 19 world, or to overpay on A/B class with negative cash flow, which obviously is not a good idea either.  If you are interested in North Alabama in general, Athens and Harvest might be better options right now, but I don't think there is too much inventory there either (but I honestly don't know, as I don't have any property in those regions).  With the COVID 19 situation, many people who were going to sell here are sitting tight. 

@Gregory Schwartz - we just got a contract accepted on an off-market SFH property. I don't share the same reservations others do presently, because reasonable deals in Huntsville/Madison have become unicorns. Absolutely plan to complete the transaction without any hesitation, as supply is non-existent here, and frankly getting worse with people now waiting to list their properties.