All Forum Posts by: Account Closed

Hey, guys, thanks for the respones.

@Charlie MacPherson: Definitely on both... I've got a 3M respirator with P100 filters, and I'm going to walk through it on Monday with a structural repair company and see what they say about being able to fix it.

@Victor Evans: I did take a pic of the separation. I'll attach it below.

@Robert Hudson: It's currently listed at twice the value of the lot. We'll see what the repair crew says on Monday. If it can be fixed, I may have to offer below the lot's value to repair the property and still make a profit.

Looked at a house that smells strongly of mold, and has foundation issues. One corner has sunk 4-6", and the living room floor on the opposite side goes up and down and up and down... The kitchen floor is so rotten that there are holes in it, and it's been taped off to prevent walking.

Biggest concern: the living room wall (opposite the 4-6" sunken corner) has separated from the floor. I've never seen something like that. Is that a major problem, or something that could be corrected with a foundation repair?

Doors and windows open and close fine.

Basics of fix/flip:

 - Find a distressed house
- Walk through it and make a list of everything that needs to be fixed
- Tally up:
    - Material Costs
    - Contractor costs (if you're not doing the repairs yourself)
     - Desired profit ($10K, $20K, etc)
- Create a list of comparable houses recently sold (I use a spreadsheet that I'd be happy to share)
    - I like to look at houses: 
         - Sold in the last year
          - On the same street, or 1-2 over
         - With nearly the same square footage
         - Within 5 years of the build year for
- From the above list, determine average price/sq. ft. in the neighborhood
- Use the price/sq. ft. to find the ARV of the house you wish to buy
- Subtract your profit and costs from the ARV: The number you are left with is the most you should pay for the house.

Obviously, that is fix/flip in a nutshell (a lot more could be said). Let us know if you have any questions.

Also, be sure to check out the BP podcasts. It's an amazing source of information, and a really good time.

@Terry Hershberger @Erik Hitzelberger @Jeff S. 

Thanks, guys, I appreciate the advice. I had wondered if the inconvenience to the tenants was part of it.

Thanks for the the kick in the pants, too. I tend to be slow, careful and methodical about things... Your comment got me thinking... Making a subject to offer actually helps with a lot of things: 

 - You decide what purchase price makes sense for the property to cash-flow
- You find out if the seller is interested
- You find out whether repairs and update costs will make sense for the purchase

And at the end of the day, you're moving quickly, and as all of you said, it helps minimize wasted time for all parties

@Terry Hershberger @Erik Hitzelberger @Jeff S. 

Good morning, gentlemen,

I spoke with my realtor about doing a second walk through with a contractor so we could see what the lower level apartment looks like (I have not seen it at all yet), and get an idea of what the repairs and updates would cost. I also asked if he could contact the seller so we could look over the income statements and operating costs.

My realtor indicated that we need to make an offer on the property, subject to all of the above. Is this standard operating procedure for purchasing a rental property. (I've never bought one before, so I am new to this)

All my friends and family tell me that making an offer (even if subject to) is a bad idea. Granted, none of them have ever had any interest in rental properties, so they're going off buying a single family. I'm inclined to agree with my friends and family, but like I said this is new territory, so I thought I'd check with you to see what you thought.

Thanks, @Terry Hershberger, @Erik Hitzelberger, @Jeff S. 

I appreciate your thoughts. I'll probably have a contractor walk through with me the second time to get an idea of the overall cost of replacing the windows, and their life expectancy, and compare the duplex to other comparable ones on the market.

Good afternoon, everybody,

I'm working on getting into REI, and right now I am looking at the possibility of purchasing a duplex.

The windows in the upper unit (and probably the lower) are original to the house. They slide well, but the wood frames are drying out and beginning to crack, and several of the screen frames have been bent. - In a flip situation, I would take the need for new windows into account, but my realtor advises me that the state of the windows shouldn't be considered in the offer price for a rental property. I'm tempted to disagree, but I wanted to see what others thought.

Property Summary:
I've run the numbers through the deal analysis form, and after paying all expenses, I would be cash flowing $274/mo. (I used the numbers @BrandonTurner suggested in his rental property analysis webinar for future assumptions [2%} and monthly variable expenses [10%])

The cash-flow is based on full occupancy (two tenants), but there is currently only one tenant in the duplex.

The duplex is an upper-lower set-up (so one tenant lives in the split-level style basement with egress windows). I was only able to tour the upper level, so I will need to see the basement before making an offer, but I was wondering if anyone could give some advice about the purchase price:

 - The duplex is currently listed at $10,000 above assessed value

 - Overall, it's in good shape (built in the 70's), with no major repairs needed externally, outside of the windows. (needs some vinyl corner trim and bushes need to be trimmed - driveway is badly cracked and could use a resurfacing, but is still usable)

I have an opportunity to wholesale several foreign properties (outside the US). I'd like to consult with a lawyer about creating a wholesale contract, but I want to make sure that I find a lawyer who is able to make sure I comply with any local laws, so that I don't get accidentally commit to buy the property should I fail to find a buyer.

Any suggestions?