All Forum Posts by: Andy Bankston

Thanks, Jason. Glad to see your first post here on the forum, and I hope you continue to post so we can share in your success stories in the future!

Thanks, J. I had not thought of that, but it makes a lot of sense.
As far as the financing contingency, the buyer's pre-qual letter shows them paying a $40k down payment, which hopefully means the financing won't be an issue. Thanks again for the tip, I'll definitely keep that in mind going forward!

Thanks, Shane and everyone else. I just hope everything goes smoothly and we can get this closed.

If you're looking at a flip scenario, the assessed value of the property has no bearing on your numbers except that it determines how much property taxes will be paid. I successfully petitioned the county to lower the assessed values (and therefore the property taxes) on my personal residence, rental property, and flip property.

Instead of assessed value, you need to look at good comps for the area to see what homes are really selling for right now. The home could have sold for $1.2M last year, but if they are only selling for $120K right now then that's where you're going to get your ARV from.

Where are you getting rental comps from? I'd be sure to call the "for rent" signs in the same neighborhood or as close as possible to get an idea of what kind of rent to expect. Rents for a general area or city can vary greatly from what the home will actually rent for in that neighborhood... for better or for worse.
Also, you'd probably be well served to get a contractor or two to walk the potential properties with you to give you a realistic idea for rehab pricing. Don't expect them to do it for free, especially if you don't have the property under contract.

Good luck and keep us posted.

Just a quick update: It looks like we've come to an agreement with the buyer. They increased the purchase price a little and shortened the contingency periods for inspection and financing to 10 days. The offer is for over 95% of list price, and I'm happy with that because there are some concerns that the house might not appraise for much more than that because of an increase in foreclosures in the area. I'll also be paying $3k towards closing costs.
I hope to have a signed contract tomorrow so wish me luck!

Thanks everyone!

That would be great J. I'll keep an eye out.

Thanks! If you're on Facebook, you can "like" the Mended Properties page if you'd like. I post an update there whenever I have an update on the website.

What kind of bike are you riding? I've roadraced for probably 12 years or so. I also have family near Minneapolis in Brooklyn Park!

Thanks guys! And thanks J for your insights and contributions to this site that help me and others like me. I firmly believe that helping others is something that finds its way back around to you. Let me know if there's anything I could ever do for you.

My first rehab is finally finished, and I received my first offer yesterday after 9 days on market. I'm countering the offer today and am hopeful we can get it under contract.

Thank you to everyone here on BP for your contributions to the forums. I have learned so much but I also have so much more to learn. This first project was certainly a learning experience, and I can't wait to get it behind me and move on to the next one.

You can see the photos and info for the project at my website listed in my sig below. Feel free to leave any comments or questions!

Thanks for the reply. I'd be doing straight purchases / straight resales for the time being. I have used a couple of different attorneys so far that specialize in RE closings and have had no problems. But having several viable options is always a good thing. I'll PM you.