All Forum Posts by: Bill Haines

@Jan Kerr Thank you! That is very helpful info. I appreciate your advice.

@Lori Greene thank you for the feedback!

@Parker Eberhard, good point. I don’t think it will be a home for the “long haul,” but more like a step to get what we really want.

My wife and I are considering purchasing a 1920 craftsman style home that's 3500 ft.² for our family of five. However, in our small town of 8000 there are no comps. I don't forsee any significant appreciation in the next five years. My offer would be $80K. Rehab cost will be $125K. ARV I suspect would be $295k to $300k. If we only plan on living there for five years, is it worth pursuing? 

My wife and I own a 1060 sf 3bd 1.25ba bungalow home built in 1924 that my wife bought in 2007 before we met. The home was remodeled and sold to her for $68k. On the surface it looks nice, but everything about it is falling apart. The neighborhood is horrible. We owe $64k because we refinanced a few years ago. It's worth less. A realtor said if it was priced at $59k she could sell it. I'm guessing it needs at least $15k to fix. I doubt it would get $74k ARV. We had it listed this past 6 months with just a few showings. Should we put any money into it or just pay it down and try selling?

My first deal was a no money down 4-plex. The seller financed the 20% down.

Thanks @Chris Mason.

@Jay Hinrichs Thank you so much for taking the time to reply. I really do appreciate it. Last night I confirmed my sister will partner with me and she will supply capital for future deals.

@J Scott Thanks. Yes I do have the credit and income. If cash reserves can come from another source then yes. However, I suspect the traditional route would require you to have reserves without outside help? As for the $20/sqft repair being low, you're probably right.

@Mike Hanneman I was thinking the same thing?  Why hasn't another investor picked it up?  It's not in a war zone, but it is in a depressed part of town.  I've already decided to pass on this one.

Thank you all again for your help!

@J Scott Thanks for your feedback.

Originally posted by @Russ Draper:

Your question is too vague.  Ask a more specific question!

So my quick-gut answer is: you don't fund it if you don't have money.

Russ, I've driven neighborhoods in my small community. One of the properties I've found is a vacant 4-plex that is not livable, but someone had begun repair work including a new roof. It is online and inside pics look rough. It's listed as well x 3 years according to Zillow. The listed price began at $40k and is now $20k. Without any due diligence other than what I've mentioned, I figure a rough repair figure @ $20/sqft would be $41k. ARV I'm estimating to be $120k.

With that said, I don't have any money to put into something like this.  I do have a hand full of GC relationships that could do the work. My thought is to rehab, hold, and rent.  Do hard money lenders typically do deals like the scenario I described? Is there any other solutions assuming the property and numbers work out?  Thanks for your feedback!