All Forum Posts by: Scott Garrels

 Hello Matt,

I actually declined to pursue this foreclosure property given additional information I obtained from neighbors etc.

Thank you for reaching out.  Appreciate the response.

 Thank you for the link to more resources. 👍🏼

Looking at a potential opportunity on a foreclosure property that would be either of personal residence or a house hack after a year or two.  Located in Iowa.

I have never purchased a foreclosed home before. What are the pitfalls to look out for and are there any tips, particularly with financing the purchase, anyone can share?

Thanks in advance

@Joe Splitrock and @Alexander Szikla, thank you both for this valuable input.  I will contact an agent regarding the as-is sale potential in the market.  I am also now anticipating an unsolicited offer for the property as another investor has just reached out to me today as well.

I really appreciate your feedback here.  

@Joe Splitrock and @Alexander Szikla, thank you both for the replies.

To answer your question and provide a bit more information, this property was purchased 8 years ago for $96,000.  Still owing approx. $80,000.  The last time it was rented it went for $900/ month.  I do consider this to be class C/D, but I would also mention that recently the neighborhood is making a small comeback.  Particularly on the block this property is currently located.  Several former rentals on the block have sold to new homeowners now.  In terms of equity I would say only about $20K.

Thanks again for all of your insights and honest feedback.

@John Teachout this is an important question for sure. For me at least there are a couple things I could do with the funds.

But you do make a valid point on considering the cash flows.

@Darson Grantham Very good questions indeed. In fact the more that I think about them the more I feel selling is the right move for me considering those points. In particular the stress level of managing the property. I just tend to second guess myself and believe I can choose a better tenant the next time.

Thank you for the valuable insights.

Hello BP family,

I am hoping to get a little advise or insight from some more experienced investors if possible.

I currently have a SFR located in Iowa which just became unoccupied. It needs about $20K (mainly painting or siding the exterior) to bring to a market-ready place for selling it. This would put it around $120-140K in ARV based on comps within the last 30 days.

Current market rental rates for this property are in the range of $1100-1300 per month.

Gross expenses are currently at~$850/ month, including debt, insurance, taxes @ 4.75% rate.  No utility costs.

My question is would it be better to sell the property As-Is with no investment into a rehab, Rehab then sell, OR keep as a rental and tap into potential equity?  What factors am I missing from the assessment described here?

I appreciate any insight or ideas you can share.  Thank you in advance.

Scott