All Forum Posts by: Michelle Elsaid

Hi everyone,

I live in Orlando, FL and am currently looking for my first house-hacked, potentially BRRR, multi-family property. I am approved for an FHA loan (Keep that in mind since it often complicates things).

This has so far proven to be extremely difficult in my price range, rent potential, in safe neighborhoods. (I'm also crossing my fingers for a garage)

The thing is - my ideal properties exist - but they aren't currently for sale. So, to be a little proactive, I am considering direct mail to properties I have seen that meet these 'requirements' to see if they are willing to sell.

Anyone have experience doing this and what I should include in letters?

How does FHA complicate this process? Are owners likely to turn away?

I do have a realtor and would want his guidance through the process - what kind of role would he play and how would I involve him since I would be "finding the deal" so to say?

Thank you in advance,

Michelle

@Andrew Davis very interesting. This house is actually marked up WAY high. Just to give you an idea, the same house in the development, in brand new, pristine condition sold for $100K 3 months ago. This one has at least $25K of repairs to be able to live in and is listed for $135k! It is almost comical.

Anyone in the Orlando interested to look into it some more? :)

Good news! I am approved for FHA loan!! I also took a visit to the house and it is in better shape than I thought with a very active neighborhood. Bad news, I am not comfortable living in the neighborhood, so FHA will not work for this scenario...

It is a very good first flipping home assuming the price lowers- the only repairs "needed" are flooring, appliances and some paint. Everything else would be an improvement. I have not looked into private money very much, but if the lender accepted the price it is a good deal. I will watch what happens to this house and use it as a learning experience.

@John Kent Unfortunately I exceed the income limit needed for those programs! But it is good to know - I will share that info.

@Steve Vaughan Thanks for the info. It is listed on MLS but I'm not sure who has listed it. I think it is listed for 1.8x the cost it should be - will be interesting!

Hi All,

I found a foreclosure that looks like it was an abandoned renovation attempt that went into foreclosure, last purchased in the bubble. The house (looks) like its in good condition in a nice development - but has no floors installed, no appliances, and the kitchen needs to be 100% replaced, and exterior repainted.

The foreclosure is listed for sale for the same price BIGGER, TURN-KEYs in the development sell for. I want to call the lender and ask about the pricing because I assume it will go down after it does not sell anyway and attempt a FHA 203k loan, so I want to try a negotiation now - if anything it ends up being practice and experience.

It is held by a private loan servicing LLC. Any ideas on how to contact them and what to ask? Their website does not list houses, etc., only options for those whose house in foreclosure... How do these companies usually manage the sale of their properties? I don't have a realtor currently (looking for one in Orlando FL who works with investments)

Thank you!

@Troy Sheets Thanks for commenting! It looks like I will either have to get very creative or find a multi with one empty unit, either will do! ;)

-Michelle

@Logan Allec Thank you for those specifics!

I would love to do a 3-4 unit but am leaving towards a duplex just because of the purchase prices. I will only have about $10K for a down payment but am starting to consider OPM for 6 months to a year to increase my purchase price. At this time, I'm not considering less than 7% down because I want to keep my payment very low.

But -  If my duplex is around $130K, my mortgage should be covered from only 1 unit, the $800-$1000 from the other unit (when I leave) should cover expenses, vacancies, and give me a good amount of cash flow.

I am still trying to figure it all out but will reach out to you soon,.. and will check out the document from my home computer tonight.

Thanks for sharing and commenting!

-Michelle