All Forum Posts by: Michael R.

Sorry mixed those two up

Why has it been on the market for 5 months? Have you seen it? Maybe the price is to high for all the work it needed and the bank does not want to come down from where they are at.

I would offer what I think its worth. If you offer 10k and they reject or counter then you know where they are at. If you offer 15k and its accepted then you never know what they would have gone down too. I would look at the property first and then if you think its worth 10 or even 15 then throw in an offer. I always start my offer low and work up.

Maybe I am missing something but I calculated 40k, 30yrs @ 5.5 to be 227.12 a month. Then taxes assuming the high number of 1500 to be 266.67 a month. Plus insurance this is roughly 618 a month. Still not a bad deal would try to put as little cash into it up front as possible.

The two I bought for 3500$ are worth about 20-25k each. I hold them both as rentals though. i think I will make more money in the long run just renting them out. The one I bought for 2k could sell for about 35k once rehabbed. The owner was real distressed thats why I got it so cheap.

I advertise to people who owe taxes and people that own the house free and clear. Most of the time people laugh at my offer but sometimes they will call me back when they get more desperate. If I buy a house with taxes owed I will usually try to buy for 1$ then take subject to back taxes. I will work out a payment plan with the company who holds the tax lien. So I basically get the tax company to finance me. They usually require 15% of taxes owed down and then finance the rest over 15-18 months which is not a bad deal. I try not to drive around and look for distressed properties anymore I just look up the tax records and send out mailers. If I am out and see a house I like that looks distressed I will send a flyer though. I am investing in Rochester NY right now.

Also my houses are not in areas where I would want to live but I invest to make money. I do keep my places nicer than most though.
Good luck

No I did buy both properties for 3500$ each (three thousand five hundred) Got them though a mailer campaign I did. Both were decent had new roofs and one had vinyl siding. One I had to put new vinyl windows in one last month but no big deal. The owner needed to sell quick and I could close quick.

Bought one in dec for 2k. Needs a rehab- owner started and never finished. Has all new drywall and electric. House was boarded and I saw someone cutting the grass and asked if he owned and wanted to sell. He wanted 3k but I said Id pay 2k and he said that was good enough. Deals are to be had but they do take work to find.

one more thing. I dont waste my time or gas driving around I just look on the county website and see who owes taxes and mail them a letter. If I get a response then I will go and look at the house. You would be surprised at how many houses owe taxes and are not abandoned. You would never know they owed taxes from how they looked.

I advertise to delinquent tax owners. I will usually by the house for $1 subject 2 the back taxes. Then I will call up the co who holds the lein and work out a payment plan. The houses in the areas I buy go for 30k or less.

All my rentals are under 100k with must under 25k. Last year I bought 4 properties under 10k. Bought 2 for 3500.00$ both rented one for 500 one for 750. Much better cash flow then you will get with that vegas property. Do a mls search of rochester, ny , memphis, tn, st louis, indianapolis, etc to find profitable investment properties. You can find TONS of property in decent condition with cash flow for under 30k. Keep looking and read up on expenses. You will have tons more expenses besides your mortgage. Even if you don't have the expense right now you need to budget for it in the future.

I manage most properties myself. I live 6.5 hours from my properties and require tenants to deposit rent into my account at the bank. for properties that are tough I pay a manager 10% to chase the rents. If any repairs are needed then I take care of them myself. I have a good team of contractors so I dont need to pay markup.

Anyone here invest in Jaksonville Fl? I see a good amount of low priced properties for sale. I am going to guess these cheap ones are in war areas. Wanted to see if anyone here invests there and can offer any suggestions or advice on buying some cheap rehabs and renting them out in the area. I invest in similar properties in NY where I live but would like to get some properties in different areas to spread out my risk. I would be buying to hold and rent or just flip to another investor.