All Forum Posts by: Richard Rockwood

@Andy Robison I was thinking about it. But since you showed interest, yes I will. 

@Paul Wurster - Keeping it as a rental is my backup plan. I am only doing flips to finance my buy and hold goals. I have a good government job with great pay and benefits, so I do not plan on making this my sole income unless something drastically changes. My goal is to retire by the time I'm 40 though. I do have a question for you though. 

Refinance how? It is being bought with all cash, no financing. Do you mean like an equity loan? This is the part that I'm getting hung up on when I'm trying to strategically plan my long-term goals. I'm having difficulty understanding what I can and cannot do as far as equity loans are concerned. 

@Kenneth Huddleston - Wholesaling would be a great idea for this property. However, it is a Fannie Mae Foreclosure with a contingency on the deed that states that I cannot sell it for more than 120% of the purchase price, ($32,400) until 90 days after the deed transfers. Thanks for the advice. 

@Michael Seeker - Rehab estimates are as follows: 

1400 sq. ft. house 

Paint: $2,000 for interior and exterior paint. I do not expect I will spend this much in paint, but it's better for me to overestimate rehab costs than to underestimate at such an early stage in this venture. 

Windows - $800. Two windows upstairs need replaced. 

Landscaping - $500

Appliances- $2500

Refinishing Cabinets- $200- Very liberal estimate

Flooring- Carpet upstairs, hardwood/vinyl tile downstairs- $3,000

Miscellaneous fixtures, bathroom vanity, toilet seats, supplies, etc.- $2,000

Total: $11,000

I will be doing most of the work myself, I have a family member who has worked in remodeling for the last decade to work alongside me. 

Please Note: I do not intend on doing work myself on the properties I purchase. This is a one, possibly two-time deal to give me a little more start-up capital. I put every cent of savings that I had into my first deal (foolish perhaps, I see it as willingness to dive in) and I am using credit cards to fix the house. I also work a well-paying, full-time job, so I am not all that concerned with being in debt to those cards. I was going to hold out on my first property until I saved a little more money, but after listening to a few podcasts I learned that many people started by using credit cards. 

Yeah.. But if they know what homes sell for in the area, you shouldn't have a problem. I don't feel like you have to be a rocket scientist to find a deal, but you're right it seems like some are clueless. 

After months of creeping on Biggerpockets.com and listening to countless podcasts during my morning runs (Great idea for those that run), I've negotiated a deal and now have my first property under contract. 3 Bedroom 2 bath house. Home is a REO and will be purchased with cash for $27K. Estimated rehab budget of $12K, holding costs of $250/month. Fannie Mae has a clause that prohibits me from selling for greater than 120% of the purchase price for 90 days after the deed issued. This shouldn't be a problem however, I'm doing most of the work myself until I build a little more capital and it will likely take me 3 months. My plan is to replace a couple windows upstairs, fix a few minor drywall issues, and paint, as well as refinish the cabinets and change hardware, and landscape. According to our Realtor the ARV is roughly $68K, but I tend to be a little more conservative and think that it will sell for $60K. Also, at the end of the day, I could rent it out for $800 if I absolutely had to. This would insure that the rent is 2% of the amount I have in the house. Cash-on-cash wouldn't be great though because I paid all cash... What do you guys think?

I'm just getting started so don't take what I say as professional advice, but I would think that most realtors will be investor friendly in Southern Illinois. If you don't feel like the people you are working with are competent in the investing realm, just do your homework and try to walk into the situation knowing all of the steps needed to get the job done. 

By the way, I'm from Springfield. Nice to meet you, Edward.

I really needed to read this today. Thanks.