All Forum Posts by: Account Closed

@Brian Phillips @Dennis M.

I don’t understand what you two mean

Overpaid and didn’t run the numbers?

It is a $65k house that has $7k rehab with 20% DP that rents for $925 with 25% expenses & PM; CFs $250 mon. ARV $110k

I guess you didn’t see my question really so- I was asking if I should keep it or sell it after the remediation/restoration. And come out with $20k 

Well thanks for listening anyway

 

@Colleen F.

I mean the restoration costs have not come in yet but the remediation has; the adjuster is still working on it

I agree with the “rental vs flip”; it’s part of the “business”!

Thanks 

Yes you have to compensate for increases like inflation, taxes and insurance then you increase rents to cover; but if not and you want to increase rents based on the conditions of the property then it is HIT or MISS

Just because you put granite in doesn’t mean you will get an extra $25 or $50No.

All based on your market 

I’m not calling you greedy I’m just saying be cautious of your market and don’t over leverage it because once you get use to it and then the economy drops (Jacksonville susceptible) rents will go down! Then what

Know your numbers and stick with what works; I know Turnkey companies that are $10-$25 below market so they have occupancy 

NO, you are not running a charity, but the market dictates your rent and the PM knows the market; you had two PMs say the same thing.  Don't be greedy but be fair.  

If you are already at the height of the market then where is there to go?  You already said the other property increased to $750 and there was vacancy. You should only increase rents if you are below market and you are progressing to meet it. 

Jacksonville is not an appreciation market - it is a cash flow only market with military presence that can make or break you. What is the other employer markets? Retail? I am sure you didn't get into that market to get crazy numbers UNLESS it is a BRRRR deal.

Hi guys, so my tenant was on vacation for 2 weeks and when he got back; all of the floors were buckled and mold growth was on 2 walls of the garage.  During further investigation, the kitchen supply line shark bite connection failed and was spewing for 2 weeks.  The crawlspace was flooded, all the floors were pulled, partial drywall and crawlspace insulation.  More into it.....

Mold remediation was completed $2800; all crawlspace remediated.  Kitchen cabinets destroyed etc, etc.....

After all remediation completed and labor costs the total came to $20500....So far insurance is covering but have not received complete estimate yet. 

Also, the Restoration aspect is being litigated as well and will probably run about another $20-25K. My deduct is $1K

Now MY QUESTION

I bought this property at $65K and owe $50K; I already have $22k into it when I bought it (DP & Rehab). The ARV is in the range of $100-110K. It rents for $925mo.

Do I rehab it with ins money with the restoration company (or my contractor) and put on the market and worst case scenario sell at $95-100K and I come out with about $20K after my previous rehab/DP and sale costs. 

Or Keep and continue to rent? The cash flow on this property is $250, COC 13%

After complete rehab I could push $950mo.
I just feel this is a lemon of a house right now, especially with the previous rehab I had to do when I bought. BAD MOJO

Thanks in advance

Rob

Couldn’t make it but keep sending out notifications 

I will always attempt to be there

The Bank will not accept partial payment; it is $12k or Foreclosure; 3rd option - pay off loan or private sell

I was introduced to this opportunity by a friend whose sister has this house and I have heard of these pre foreclosure types like this and need help understanding how it works and how I could help her without being too much of an investor 

would this be a wrap around mortgage, an assumption or flat out new loan

Details:

Person is behind $12k, Owes $91K, Mortgage is $795 PITI. Lived there 8 years, This house is in Murfreesboro Tn

Value is $180s and this market rents between $1200-1600

Don't know the condition of the house yet but the owner wants to continue living there and possibly buy back the house through lease to own close to what she is paying now.

Here are my question:

How does it work - If I work with the bank and pay the back payments ($12k) and assume the loan with a better interest rate (1% difference) does the $12k come off the 91K and would I also have to pay a downpayment since I am getting the loan as an investor? 

This is broad but never had to do this and I am confusing myself

Let me know when you are ready to go

Good Question because I am in the same situation - BUT the abandoned home is the same address of owners on record

May try facebook or the prison system???

Definitely place a fence, obviously that's what your market is telling you

A) increase rents

B) Tax loss

C) Privacy

D) Demand