All Forum Posts by: Ryan G.

@Jaycee Greene I think if I did a long term rental it would rent between $2k and $2.3K. If I did short/mid term rental I could do about $3.5K/ month for 10/12 months.

@Jake Baker thank you very much! I will keep that in mind when discussing the offer

Hi All, and thank you for your help in advance.

I have an opportunity to purchase an investment property that is NOT ON THE MARKET yet. Here are some of its vitals:

- Zestimate: $345K (I know this is typically 10% or so high)

- Last Sold: 8/2021 for $281K

- Roughly 1400 sqft

- Some cosmetic work needed

- $25K left on solar loan

- The home was build in 2004 and it looks like it has the original AC unit, so I am assuming that needs to be replaced too.

- 2 story house with very small rooms and and 2 steps down, imminently as you enter the front door.

- Gated community and in a reasonable HOA.

- The home is 2 payments behind and already got a letter from the lender about future foreclose.

There are two options I have offered and I want to get a check on here if I am off base with my offer or if I need to push harder.

Option 1: The loan that the owner has is an assumable loan at a 3.875% rate and still has about $265K. I wanted to offer him about $50K over what is remaining on the mortgage and go through the 60-90 day process to assume the existing mortgage. That will have me in at about $320K plus the solar loan. The owner representative (not an agent, just family) seems to not be a fan of this option because he does not understand it.

Option 2: If option 1 does not work, or they are unwilling, the offer I see as valid for this property to make sense is about $290K plus taking over the solar loan. I a factoring in the replacement of the AC unit and potentially the water heater, and the cosmetic thins (I would do myself) to get it to rentable standard. I know this seems low, but the way I see it, this is how much the buyer would potentially walk away with if they posted it on the market and minus all the fees and concessions so I am getting them to that number with none of the hassle and removing the issue of a looming foreclosure.

Lastly, if I was able to get this home at that price below market, are there loan options that require little to know money down, since it is at/below the 85% LTV?

I would appreciate any insights and additional things I may be missing. I know that I do not know everything, and I do want to make this deal work, if I can.

Good Morning BPers

I have had a rental property under management for about 10 years now, because I’ve lived out of town. I am now back in town and am thinking about self managing but here are some things I am unsure about and could use some advice:

1. We’ve had the same tenant in there for 4 years and their lease is coming up and they have recently had trouble paying on time and are worried that we may have to find another one. We are going to increase the rent more than usual but it will still be about $100 under market value. To help this we are going to update the kitchen and put time in the bedrooms that have old carpet (thinks we wanted to do anyway)

2. I am not sure how to transition from the management company to the new management company (me) and make it as seem less as possible if the tenant decides to stay.

3. Any tools you recommend I have/ need from the very start if I decide to go this route?

Thanks,

@Zach Westerfield also, Can framing be bundled with other work, for better rates usually?

@Zach Westerfield thank you for your wisdom! That’s definitely going to help me out. Do you know if it less expensive when contractors are framing for for the brick wall since it is not a lid bearing or supporting wall? What is a good rate to look for when looking for framing/ repair some existing wooden framing?

Hi all!

I purchased a brick home foreclosure and have just cleaned it out and gutted the inside of it (it needed it). I have a few questions on my next steps:

1. Is it worth it to frame the inside of the exterior walls to Insulate and put dry wall on easier? Or is it better to just use the exterior brick walls?

2. We are in a desert. Is it with the savings to install a multi zone mini split vs a traditional A/C unit?

3. Any suggestions to “over engineer” to prepare for a renter?

4. It has gas, is it worth it to keep the gas stove or just cap it and make it electric?

Thanks all for your help!

Tucson Arizona

Hi Everyone!!

Just closed on a fixer upper foreclosure (value add for sure). I want to be hands on with this first BURRRR so that I know what good and right looks like moving forward, and I also want to know what time frame looks like.

The first thing I started to look up was a roll off dumpster (30 yr for about $450) and that got me thinking about the 99999 pro friends I have on BP.

So I’d love to hear:

- Any hacks that you have learned

- what NOT to pour money into

- I’d like to go w/o a contractor, so any insight here would help

- Anything else you wish you would have known

@Kelly Beasley is this property near the Sells, AZ area? If so, get the money you can from a flip... a 1/1 wouldn’t for for over $1K (even with stables). BUT if there is a way to turn it into a duplex, that could be a way to get closer to your numbers.

Also, I saw you post in one of your post about permits... I called this number and asked them “general questions” about permitting like: If the dwellings on the parcel match the description with the county but a permit can not be found, how would that de rectified? They were really receptive to answering those kind of questions. Here’s the number, hope it helps 5207246490