All Forum Posts by: Cheryl C.

@Kyle Scholnick

I live and hold rentals in NOVA and have done so for 30+ years.  My numbers would probably be frowned upon by many here - except for properties acquired many years ago OR in the 2009-2012 era.  In that event, you are dealing with a lot of dead equity.

If you go with distressed properties in good locations, your appreciation can be significant.  I know that many investors consider appreciation a crap shoot and disregard it completely.  Not me - but the numbers can't be crazy bad or I'll pass.  The problem in this region is that cash flow is rarely "good" outside of war zones that will not appreciate.

Like  @Eddy Dumire, I have found success in Stafford (115K TH with 10K rehab - rents for $1,450. Bought early 2013 on a short).  Stafford, however, is on the rebound and deals are not plentiful.  I just sold the Stafford place for 198K.  I am slowly liquidating my portfolio as tenants leave.

You may want to look at DC and follow the areas on the edge of gentrification.  With the trend for City living, you could do quite well if you choose wisely.

Other than Naples (nod to @Mustafa Abdulali - predicted appreciation 40+% over the next 3 yrs) and the location of my summer home, I stick close to where I live.

@Chris Seveney.  While new delivery is concerning; these projects are being delivered at a much higher cost and with very high rents.  I see this as pushing my rents on close-by properties (condo's where the younger set want to live).

Keep looking.  While hard to find, the deals are out there.

Best of luck to you!

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I closed on my first Hubzu purchase at the end of April.  Luckily, closing went surprisingly smoothly.

I met my contractor at the property and got him started on (what I consider) minor fix-ups - paint, carpet, laminate install and a bath remodel.  I thought he would take 2 weeks, but he took four.  I listed it June 1 and it is under contract (10 days on the market) at full ask.

The numbers:

2/1 condo  purchased for 373K all-in.

Fix-up   12K

Sale price  468K

Commission @4.5%   21,060.  (ouch!!!)

Closing cost est.  2K

Net profit (minimal carry costs - paid cash)      aprox  59K

I think I'll start paying more attention to online auctions...

@Account Closedundefined

Wow!  Let her go!  She is going to be trouble.  And she sounds like a nut!

I would contact her in writing and box her in.  "We have decided to accept your offer to vacate and agree to your request to terminate the lease".  Make it sound like a contract and turn her question into "her offer to vacate" which you are accepting.  It probably won't pass muster if challenged legally - but you get my drift.

If she tries to back off this request/question, I would tell her in no uncertain terms that her voiced intent to conduct business from the unit is a breach of lease, which will aggressively be enforced and may result in eviction proceedings.  You don't need to address the tax ID matter.

Can we get an update as to where you are now?

@Ramon Jenkins

Thanks Jenkins!  I took my contractor through last week (pre-close) and gave him the keys today when he stopped by with carpet and flooring samples.  I've put him under the gun before.  I want this "on" asap - before the summer lull sets in.

I am doing a couple of flips and want to ask for some advice.  What are you using/seeing in terms of paint and granite?  Also, is anyone converting tub/showers to shower only?  How about laminate?  3 1/4" vs 5"?  Light/ dark/ medium?  I see a lot of chrome these days as opposed to brushed nickel.  I have also been seeing a lot of gray tones in paint.  It seems that beige is out(?).  I want to stay as neutral as I can.  I appreciate your input!

@Jonathan Makovsky

@Jonathan Makovsky

I got my advice here at BP.  I put in a back-up bid and the other person flaked.  I can't remember who here at BP was talking about getting properties via a back-up bid, but it worked out for me.

I got a condo (built 2005) that needs very little (paint, laminate, carpet and replacement of a couple of fogged windows).  I think one of the reasons that it went so low is that it was listed as a one-bedroom when it is a two-bedroom.  I checked tax records (as I always do) for square footage, beds, baths, etc.   Anyone comping out one-bedrooms would have passed on it as there is a 100-120K difference in price between a 1/ and a 2/1.

I was a little concerned that I was in for a nightmare after reading some threads here.  All in all it was pretty smooth.  I had been bidding on this particular property for 3 months and finally got it for 30K less than I had bid 2 months ago.  It's a very good deal and I intend to have it back on the market in 2 weeks. 

@Kyle J.

@Kyle J.

I spoke with the county and it might be a mistake in their map overlay.  It could also be that the house is on our lot.  This is a very old rural area and people often built without surveys.  In fact the county still doesn't require a survey to issue a building permit.

Next step is to get a survey - that is in the works.  I should look at the legal description (I still haven't located my purchase file - we moved last year and it's in some box in the garage) as it should be an interesting description - "from the rock for 300' to the cherry tree..."

@David Krulac

,Excellent outline of tax sale/title issues.  I was fully aware of buying a pig in a poke.  Many of these tax sale lots are land-locked, small slivers that are not buildable, swamp land, etc.  And some don't even exist.  I reviewed the tax maps provided by the County but also know that these can't be entirely relied upon.

In this particular area there are many tax sale parcels that are titled "A, B, C, and D, Heirs to so and so".  I can imagine many scenario's where publication may have been deficient. But I can also imagine heirs that don't have money to pay taxes and just let the property go. I can say that I didn't receive notice of a quiet title action and that the County tax office has my correct mailing address.

The adverse poss. statute is 20yrs in Virginia.  My thought immediately went to a break in the chain resulting in my purchase being outside the chain somehow.  The dual tax bill idea and 2 chains may be the answer.  I'll have to get a title search done.  I'm quite sure that a search was done prior to the tax sale so that the proper parties could be noticed.  But, here again, if there was a break and two chains - who knows what will be the outcome.  60 year searches are the norm here.

Yes, tax sales are a land mine and serious due diligence should be performed.  As I stated, the lot was only 4K and purchased "on a flyer".  I wish that I had followed up with the owner's policy...but it is what it is. 

@Jon Klaus, I think that I would have noticed this (but maybe not - as a stack of these relatively small bills come once a year and I just quickly write the checks).  I'll have to go back and see what year it jumped and whether any "improvements" are now listed on the assessment.

@Account Closed,  Since I had no idea that a house was being built I don't anticipate an unjust enrichment theory would prevail.  It's not like I stood around and watched someone build a house on my property.  And I did make inquiry to the County when the tax assessment jumped. The tax donation is appealing however.  Thanks for the idea!  Sounds like a win-win!  The best scenario is that I have good title, a major screw-up occurred AND the "new owners" bought an owner's title policy and will be whole.  I don't want to take someone's house from them - but I sure wouldn't mind a nice windfall!

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