All Forum Posts by: Mike Watkins

You've convinced me. Moving on to the next deal. 

also thanks guys for the help. 

the brick is not tied to anything. It's standing on its own. Some of it's black but looks ok. If the brick needs to be tired In this is no deal.  

I completely forgot about the realtor sale at retail.  

I have it as a flip because what landlord would want to spend so much on repairs? 

I'm reading "how to estimate rehab costs" now but but I could raise the repair cost but I'd have to lower the price on the deal. Do you think it's do-able if I get the house for free?

I have this deal that came in and it's a brick house that has burned down. The ARV is 60K conservatively as a 3/2. The only thing left(that's salvageable) is the brick and the foundation along with a garage in the back yard. I have it now with a partner at 7K. I plugged everything into the wholesaler calc and posted that info below. The one problem I see it that the repair cost is greater than the profit. There is a partial basement but I couldn't see it. I got the other pics because the door was missing from the side entrance.

Here is a link to the dropbox photos.

https://www.dropbox.com/sh/gie2hw3w8pknq3i/AADweiC...

What would you do?

Financial Breakdown

Purchase Costs

Purchase Price:	($7,422.50)
Purchase Closing Costs:	($0.00)
Total	($7,422.50)

Rehab Costs

Total Rehab Costs:	($30,000.00)
Total	($30,000.00)

Holding Costs

Monthly Holding Costs:	($385.00)
Total Days Held:	45
Total	($577.50)

Sales Costs

Sales Price After Fix Up (ARV):	$60,000.00
All Selling Closing Costs:	($2,000.00)
Real Estate Agent Fees:	($0.00)
Total	$58,000.00

Total Profit for Flip

$20,000.00

Estimated Repairs Exterior Repairs RoofN.A.

ConcreteN.A.

Gutters/Soffit/FasciaN.A.

GarageN.A.

SidingN.A.

LandscapingN.A.

Exterior PaintingN.A.

SepticN.A.

Decks/PorchesN.A.

FoundationN.A.

Interior Repairs DemoN.A.

SheetrockN.A.

PlumbingN.A.

CarpentryN.A.

ElectricalN.A.

Interior PaintingN.A.

HVACN.A.

Cabinets/CountertopsN.A.

FramingN.A.

FlooringN.A.

InsulationN.A.

TOTAL REPAIRS:$30,000.00

Return on Investment for Flip* 52.63%

Immediate

426.90%

Annualized

*Based on no loans or leverage

Flip Hypothetical Profit If Held For...

45 Days	90 Days	270 Days
$20,000.00	$19,422.50	$17,112.50

Why don't you get on buyers lists. See the houses that are being sold. As far a foreclosures you can go to the courthouse and see who the real players are there. Auction.com will tell you when they happen. 

Maybe you need to look at a more dense area where you can get enough absentee owners.

If I owned a home for 7+ years and had some good equity in it, I'd keep the thing. Why would I want to sell it? 

This turnkey investment home can easily be rented out at $800 per month bringing you an annual $9,600. Yes, that's right an ROI of 16.8%. You'll see that some of the comps below are only 3/1s and that's because I wanted to be conservative with the ARV. The rent could be raised to $850 but at $800 your house will be the cheapest one in the neighborhood.

Comps

Address              Bed Bath  Sqft.      Year      Price          Sold Date        Distance

3255 Pinehill Dr     3     1    1,056      1955     $55,200     12/03/2014     0.16 mi

3087 San Juan Dr 3      2     1,100     1955     $46,000    12/03/2014     0.53 mi

1310 Celia Way     3      1     1,068     1961     $95,800    12/02/2014     0.64 mi

Tell me more about these "hot leads" and what are you mailing to? Also how are you getting the list?

Something Ive seen is people will let it go to voicemail and the message is something like, we can't pay top dollar for your house but we can buy it for what it's worth. Is it in distress? That way when people get to leave a message they know what to expect. And only those truly motivated people leave a message. 

Follow Brandon turner. He cohosts the podcast. Loves rentals. 

Landlording on autopilot is a great book to read in the meantime.