All Forum Posts by: Paul Smythe

I am looking at a property that had an extension added on to the back of the house at some point. The neighbor seems to think that the previous owner just added it without getting any sort of permits or approval from the city. What would the process be of getting the extension approved by the city, or is it necessary at all? The extension will need work if that changes anything.

@Comfort S. congratulations on finding a potential property. I know you've been looking. I've responded below:

1. The most important details are price (obviously), area, and condition of the property. The agent will be able to help you with the price and hopefully the area, but you'll need to schedule a visit yourself to look at the inside of each unit.
2. I have a good recommendation for someone who could help you with an FHA loan. Feel free to PM me if you would like. It essentially is as simple as walking into a bank and applying.
3. I really don't know anything about FHA 203k loans, but most loan officers who handle FHA should.
4. I would check your lease. See what it says. There might be a 30 or 60 day notice clause that requires you to let them know in advance if you're moving.
5. The offer will depend on the rental income and how comparable properties sell in the area. We wouldn't be able to tell you more without knowing more information. You can likely visit the property before agreeing on a price with the seller, but it is extremely unlikely that you will be able to schedule an inspection before having a signed agreement with the seller.

Good luck!

@Tony Castronovo It is possible that you actually aren't priced right if you aren't getting enough visits in a seller's market. I would take a hard look at your current price and see if that is keeping people away.

I do think staging is generally a good investment. I don't have numbers to back this up, but I expect it would help you sell your house faster. I listened to a BP podcast recently, and they discussed going to a furniture rental company, picking out the furniture, and delivering it to you. That could be a way to save money if you want to cut costs on the staging.

@Russell Brazil I'm sure I can set a reserve. I don't mind a little risk, though.

@Jeremy S. For the auction you went to, who handled it? Was it a local thing?

Also, as a follow-up, I'm not finding much in the way of auction sources. Is there a site that handles a lot of auctions?

Has anyone ever had the courage to put an investment up for auction as opposed to selling it normally? What was your experience? Who did you list with?

I've got a flip that I will be trying to sell later this year, and I was wanting to get opinions on putting it up for auction. I can see two main benefits to auctioning a property:

• It will sell quickly (in theory). You have a set date that the house will sell and you take an unpredictable price in return for a predictable time frame.
• You have the potential to sell for a higher price than a normal listing if there's enough interest, and because we're in a hot market there's definitely a chance.

Drawbacks:

• I'm assuming there are higher fees. I could use some clarity on that, though, because maybe the auction fees just replace realtor fees.
• I don't know the process, but it could be more complicated. I know it is from the buyer's end.
• There's a chance you would sell for a lower price and lose money. A reserve price might help, but it would obviously lower the interest.

What if I were to set the auction start price at my breakeven point? With my current deal that would be about 80% of the ARV, but that way I'm guaranteed not to lose money.

Obviously the price is the main question mark here. Anyone have experience with selling a house via auction?

@Jaysen Medhurst is correct. House hacking is what you're looking to do. With an FHA loan you do need to live in the property for a year, so make sure you're comfortable with the area. There will also be more requirements for an FHA loan (http://www.investopedia.com/articles/mortgages-real-estate/11/fha-minimum-property-standards.asp)

@Juan Gonzalez If you think you can handle a quadplex then go for it. A duplex might be a little easier to manage if you're a first-time investor (and there will likely be more inventory out there), but if you think you can handle a 3 or 4 unit property then go for it.

@Gary A. I agree with @James Han on Stone Mountain. I would also consider Doraville. A lot of neighborhoods in Doraville are blue collar.

@Jonathan Gilkeson Atlanta is an excellent area. @Mike O'Connor is on the right track. It's booming and if you can find the right areas there's plenty of opportunity