All Forum Posts by: KC Zhang

Found one REO property that looks interesting, 3br/2ba SFR, listed for $112k, hourses in that area sell for 130k to 150k, rent per month around $1200, house need about $2000 repair

I found two schools of thoughts on BP in term of making offers to banks:

1. Start with 50% of asking price and go from there
2. Start with best and final offer

Also, it is suggested to pay no more than 60 times of monthly rent. For this case, it is 1200x60=$72k

My strategy is buy and hold for cash flow.

How much shall I offer? $70k?

Thanks

Casey

Thanks for all your warm responses and wonderful ideas. They are all very helpful.

I was on another REI forum few years ago, but look like I will spend more time on BP now.

Jerry: I have some rough ideas about home repair and selling costs. In my line of work, when you are not sure about a deal, you build contingency into the price. I think the same goes with repair cost.

Jake, i will try to go the gathering on the 16th. Hope to see you there.

Thanks again for all your inputs.

Casey

Greetings,

I just returned after living overseas for two years, and joined this community few weeks ago. I started investing in RE few years ago and bought few houses in other states. Most of them are performing good. But it's been a slow process.

I want to spend more time and efforts in real estate investment, and focus on my local area. I know people are doing deals left and right even in this slow market. I want to get into fix and flip, or landlording. I started looking at Homepath and HUD properties and some of them look pretty good in term of profit margins. Is this a good starting place to find fix-and-flip deals? Would love to hear your thoughts on this.

Cheers

Casey