All Forum Posts by: Neil K.

Hi Eric,

Are you planning on acquiring any properties while you are here?  Or just acclimating yourself to the GSO market?

I'm also just getting started here in Greensboro.  If you wanna grab a beer and discuss Real Estate sometime, I'll be around!

Thank you for all of the great advice!  At the end of the day, the numbers worked pretty well on this property, so I put in a pretty conservative offer of $43k to be on the safe side, but I'm pretty sure someone already beat me to the punch.

@Len Leggette  I am still in search of a reliable realtor who understands my objectives.  It sounds like you might be the right guy for the job.  Can I pm you with some details of a property I'm looking at?

@Paul Sofia That sounds great!  I could use all the advice I can get.

Here's the situation:

Looking at a 3 bd 2 ba manufactured home (2007) as a potential flip.  The home has a brick foundation, large 2 acre corner lot, and is in a quiet neighborhood not a park.  The house needs some minor cosmetic updates (removed carpeting, patch walls, trim work, cabinet doors, linoleum) and possible a  new HVAC system ($4000).

Seller is asking $50k, and a move-in ready comp down the road recently sold for $89k in 2 weeks.  The plan is to acquire property for $45k with conventional mortgage, put around $10k into it, and resell for $89k in a month or two.

Any thoughts on this plan?  problems with flipping manufactured homes in NC?  Any feedback would be greatly appreciated. Thanks!

@Nancy Bachety

Similar Comps in the neighborhood go for 60-70k, however, this one is one of the smaller ones.

Since this is an REO, is it even possible to get owner financing? since it is already owned by the bank?

@Nancy Bachety

Yes it is in a college town, but it could go either way.  It would be less of a hassle to rent it out to a young professional or a professor, but it would earn more as a college rental.

@Dan O'Neill

Hi Dan.  It's great to see a fellow Husky RE investor!

That is an excellent question, and one that I have been wondering about myself.

From the loans that I have taken out in the past, the only rule that I am aware of is:

- The loan can not exceed the schools estimated "cost of attendance" less other financial aid/ scholarships.

As long as I stay below this arbitrary value, there usually aren't any problems.  The bank will pay the school, and the school will send me a check for the remaining amount after tuition is paid.  Now this money is intended to go towards my cost of living: housing, utilities, food, gas, parking, etc.  However, in my case, I have a parent that lives in the area and therefore my expenses are nearly 0.

The annual difference between the schools "cost of attendance" and what I actually pay for tuition is around $14k.  This combined with some savings puts me around $20k.  Not quite enough to pay cash, but perhaps enough to negotiate a mortgage, or find another private investor for the other bit.

The property that I am currently looking at is an REO, and will probably go for around 35-40k. It's a 3 br 1 ba in the heart of Houghton, and will easily fetch $800/ mo in rent. Depending on financing, monthly cash flow should be in the $200-$300 range.

I just need to determine if this is a risk that I am willing to take, and find a way to finance the rest of the deal.

@Brandon L.

Credit score is upwards of 740. Thanks for the advice.  Maybe I will check with a few local banks and get a better idea of what it would take for me to get a mortgage.

I'm curious what other types of lenders are out there though that might work.

@Brandon L.

Income requirements mostly.  I've had a few part time jobs and paid internships over the past few years, but nothing consistent or substantial.

Also debt to asset ratio (20k in student loans).

Hi All,

I located a great REO deal that I would like to purchase and rent out, however, being a college student, getting a mortgage is pretty much out of the question.

What are my other options for financing?

The property would go for around 35k, and could easily rent for 750 with no capital expenditures.  I would also personally manage.

I could scrape together around 5k by liquidating some gold/silver, but wondering how I might make up the rest?  Any suggestions?

Long term strategy is to buy and hold, but I would consider flipping in the short term until I settle down somewhere after graduation; It really depends on the deal.  I don't want to spread myself out too much in the beginning, though.

How difficult is it to find a property manager for a single unit in a small town?  and is it even worth the hassle?

As for my financial situation,  I am in college.  So my debt to asset ratio is very asymmetric, which is why I need to get creative with financing; it is highly unlikely that a bank would give a college student a mortgage.  

A student loan, however, gives me the advantage of having 0 payments for an entire year; ideally enough time to rehab/ rent and get the cash flow rolling before the loan payments come due.  At which point I could refinance with a traditional mortgage - whichever is cheaper.