All Forum Posts by: Adam Stanton

It's a typical 3/1 ranch, very common around here.  Built in 1980, foreclosed on last year and the bank made it move in ready.  All I have to do is clean it up a little.  Adding another bath really isn't doable.  Would have to do an addition, jacking up my cost.  There may be a few 3/2s but most are like this one.  These are right outside Richmond Va, prime commuting distance and a good neighborhood.  I redid the numbers and here's what I'm looking at.  

Using the 50% rule, if rent is 900, 450 is taken for expenses.  Mortgage is ~320, which leaved me a little over 100 per month cash flow.  So the numbers work, but they're a bit tight.  If I can purchase it at 70 to 75k max it may work.  But 80 is too high.

I use J Scotts rental analysis spreadsheet.  So I accounted for debt servicing and expenses and it shot back 13%.  I put the vacany rate at 10% though I don't expect it to be that high.  And I'll be managing it myself.  The way I look at it, 13 is a better yield that I can expect anywhere else right now.  Hopefully it won't be a huge headache with renters.  

Putting an offer on a SFH, 3/1 ranch style in a decent neighborhood. 80k purchase. Rentometer and CL put rents around 900-950. CoC is 13%. Would you take it?

Sign up in MD. Much more opportunity. DC is too hot and terribly over regulated. Don't get me wrong, you can make a ton of money there but you need a good amount to start off. 

Does anyone know of a resource that tracks new home construction by county?  If there is such a thing.

I have a FSBO near me that I'm toiling over. Owner wants 80k but it needs a lot of work including new roof, all new electrical, some structural repairs and an update to kitchen and two baths. That doesn't include finish work. The best I'm willing to offer them is 40k. I'm guessing repairs at 60k but I need to do a thorough work order (thanks J Scott for the Book on Estimating Rehab Costs). ARV is about 135k however there is one outlier at 180k. Average DoM is about 70 but that's after a hell of a winter.

I think the property is better as a rental than a flip, which will lower my repair cost.  Renters don't need granite.  

I have the funds for the purchase but would need crowdfunding or HML for repairs.

That means I would also have to refi after repairs to pay everyone back and hopefully put some cash in my pocket then rent the place out. From everything I've read, refi's are difficult for SFH before the one year mark.

Appreciate thoughts and opinions.

Adam 

I found a SFH that has been vacant for quite awhile. The owner is a local HVAC business owner and I know where his shop is. When his mother died he did nothing with the house and barely keeps it maintained. Taxes are up to date. Nice old lady across the street gave me all the history on it. I also know where the owner lives because of county records. Every time I call his shop he's out and I get the answering service. I don't like the idea of having them page him to call me so I can ask him if he wants to sell. I also don't like the idea of showing up at his shop. Those options don't seem very professional unless they're the only options available. I thought of dropping a letter in his home mailbox, which is not far from me. Anyone else have ideas or experiences to share? Thanks

Richmond also has a growing population. Which has not been the case for many years. The job market is stable and unemployment is around 5%. However property values are fickle. Two identical house only blocks apart can have wild ARV valuations. But I think it's a great place to invest.

You can hang a license with a low cost broker and cut down your cost. However you may want to work with an established broker, possibly make a few extra bucks. We are with century 21 new millennium in Fredericksburg. Best luck.

Your best bet, IMO, is to type "subject to" in the top right hand search box. You'll find more than enough posts on the topic.

Fredericksburg is a tough market. Most homes out here are new construction with prices competitive enough that no one wants the older homes. If you do find a deal, PM me, I'd like to hear about it.

Best of luck.