All Forum Posts by: Mickey Harrison

Welcome Scott!!! I'm also in the New Orleans area and love meeting new investors. If you ever make out to the NOREIA or ave any questions get in touch with me
=mickey

I hope all goes well with the property. I like the gentilly area. I currently have one rental in that area and have been looking to purchase some more around there. Feel free to contact me anytime I love meeting other investors and helping where I can. Also, the first time you go to a NOREA meeting it's FREE...after that I think it's 20 bucks per meeting if you don't join. I went to about 3 meetings before i joined just to make sure it was right for me and I can same I'm glad I did. Also, there are some perks with being a member as well (discounts at certain stores).

@ scott I read yoru other post but I don't have a pro account here. So in regards to a mentor before you pay someone. I'd suggest going to the NOREIA meetings to listen/network you'll learn a lot. The members are real open to helping others out.

I'm part of NOREIA been a member since Aug 2011. I see your website is about LA tax sales. Me and another member talked to the group about our experience with tax sales at the AUG meeting. Have you been to the meetings yet? If you want you can get in touch with me via email or phone. My contact info is in my profile

-Go Saints!

Thanks for the responses. I think I'm going to write up a formal offer and give it to the realtor to push a more formal response. If from there things don't get moving I'll continue to track the property and move one. Once i see the property has been pulled from the mls I'll then send a letter to the owners.

Not sure if this should be in buying real estate or in the deal section but here goes.

So I've been tracking a property for about 6 months now (maybe a little longer). I talked to the realtor of the property about 3 months ago getting some info (Ie would sellers be open to owner finance and they said maybe and details about the prop). Well that that time I passed on the property to go after other leads.

Now 3 months later I see the property is still on the market, So I call the realtor ask if the Owners are still open to owner finance and she says maybe again. I ask a few more questions and find out the property is having problems selling with conventional lending cause of insurance issues. (it's a detached dbl..insurance wants to write 2 different policies bank wants one policy for both props since its one morg. ) So I tell the realtor I'll send over a state contract with an owner finance offer....she says just email me what you want and i'll run it by the owners before we do a formal offer. I agreed and sent the email....well it's been about a week or 2 and I called and asked the realtor what the owners thought about the offer. The realtor said they weren't interested and didn't have a very convincing response (I doubt the realtor told them about my offer.)

So to the biggerpockets community...would you mail the out of town owners of the property with a general letter saying your interested in buying the property or just move one and write that realtor off from your list? Or do you have other suggestions?

Ok now I got ya where you got the 50% numbers from...Yeah I'm at a point where I can do one more conventional mortgage with "ease" (already have 3) but don't want to put out that much cash hence the owner finance idea if I can get my terms.

@ Nathan I would be paying for lawn care ( i do for all my properties) and that's party of the monthly expense I have above . In the area I'm in the houses are separate meters and I don't pay for water/trash. I do understand I haven't factored in vacancy. However, I'm not seeing how you came up with a 600 cashflow a year. I do understand the 50% rule but not how you came up with a that number unless I did my math wrong when applying the 50% rule
1300 (total)rents /2 (expenses) = 650 - 500(payment) = 150(cash flow) x 12 = 1800 / 16000 = 11.25%

In regard to the interest I don't know that he would take 0%. This is the offer I was going to make. I am assuming if i give him his price we can work on my terms...and yes I do understand that I would be paying for the terms in the purchase price.

If I buy the house using traditional financing or giving the seller interest I would not be willing to pay 110 but more like 80k max.

I appreciate the input and know that I'm making assumptions on the seller but I figure if i don't make an offer I don't know what they might be willing to do.
What might be something you would offer different?

Opinions or suggestions on this deal

Duplex for sale 110k completely remodeled 6 years ago still in great shape . One tenant in place paying 650 and all utilities. Rents could be from 650-700 maybe 750 if decided to do sec 8. ( i own a duplex in the area already)

Owner is willing to finance and wants 10k for down payment.

Let's be conservative and assume house is worth 115k
other side only rents for 650

Insurance 2025 (year) = 169 (month)
Tax 1100(year) =92(month)
Maintenance based off other rental high estimant 2400 (year) 200 (month)

I was thinking of giving the seller his price for these terms or even giving 115k (if he doesn't like terms to get him to agree).
Owner finance 0% interest for 15 years (would go down to 10) with monthly payments of $500 and balance to be paid of at end of term. end of 15yr 20k end of 10yr 50k

I figured

Total rents collected 1300 month

payment 500
insurance 169
tax 92
Maintenance 200
____________________
total cash-flow 339(month) 4068 (year)

Cash to get deal done high end 16k

Cash on cash return 4068/16,000 = 25.4%

In regard to the balloon payment at end of term. I assume
1. since every payment if going to principal I would have enough equity to refinance the property (traditional)
2. Enough equity to sell the property even at a discount and walk away with money in my pocket.
3. Actually pay the loan off with "my own money" (ie rents from other cash flowing properties)

What do ya'll think? Would you do this deal? What might you try to change about the deal?

plumber buddy of mine says they're great and has seen them in a few rentals he's done work in. When the charge goes out he says it's easy for anyone to replace. However, I have yet to change any of my toilets to these. Mainly because of my lease and don't want to spend the money since the reg toilets work just fine.

What I might recommend doing is in your lease have a spot that says clogged toilets and drains are the tenants responsibility and addressing what should not be put in the toilet or drains (ie wax, toys, female products, grease ect) . I mean you weren't the one there that clogged it so why should you pay for i).