All Forum Posts by: Scott Gullaksen

Hi Everyone, I have been flipping properties but wanted to start investing long term, but do not have too much experience in analyzing income properties.

I just beat out multiple bids on a property, but am kind of nervous. I have 5 days for a home inspection period to check it all out.  It is 2 bedrooms 1 bathroom with central heat.  When its renovated I should be able to get $1400/month.

The price I got it for was $125,525.  Down payment is 25% down( $31,381.25)

Closing costs will be around $7000.  

That is $38,381 out of pocket to purchase.  I plan to add central air/new heater, renovate the kitchen and bathroom, paint, and refinish the floors.  Hope to spend $20k to bring it up to speed.  

Total cash into it is $58,381.

The total mortgage payment would be $677/month.(PITI)

Rent $1400-$677/month= $723/month cash flow.

Do you see this as a good deal?  

I know I should budget for future repairs.

Thanks for your time

Once a month for mortgage foreclosures.  

Makes perfect sense Ethan.  Thanks!  

When the attorney wins the bid on the property for the bank and the property becomes an REO and put on the MLS, I do remember having to wait until the sheriffs deed was recorded to be able to close on it.

Thanks guys, but the 1 year redemption period is for tax lien sales only.  I purchased a mortgage foreclosure sale, which has no redemption period, however I will not have my deed for 6-8 weeks.  The reason why I did a title search is to ensure that there were not any other mortgages, home equity loans, or mechanics liens on the property.  I hear that Philadelphia gives a clear deed, but that cannot be guaranteed I am told.

Hi Bigger Pockets Group,

I recently purchased a sheriff sale, checked for liens through a title search, and paid off the full balance on the property.  I stopped by the property and it is clearly vacant, not one thing of personal property in the home from looking in the windows.  The neighbors also confirmed that nobody has lived here for at least 6 months and there is a sticker on the window from the bank saying that it has been serviced by a property preservation company.  The sheriffs office said I cannot do anything until I receive my sheriff's deed in 6-8 weeks which makes no sense to me since I have paid over $100k of my own money and now have to still wait to get inside and do the work.   I would like to at least change the locks and install a security system to ensure nobody will gain access until I get the deed.  Any one have experience with this?

Thanks All, It turns out I decided to fire him despite his constant notions that he would put a lien on the house.  I changed the locks immediately and I wanted to install a security system, but I had to show houses.  When I came back a couple days later, the heat was turned up to 90 degrees, he stole my kitchen faucet and other materials, cut some cable wires, and stole knobs off cabinets, etc.  Could have been much worse, but I filed a police report and the neighbor was a witness that he was at the property that day.  When I received a letter from his attorney stating that I owed him money or they would file a mechanics lien, I had my attorney tell them that if he doesn't back off I would go after him criminally and use the neighbor as a witness.   Thanks for all your help, I have not heard from him in two months, my security system is installed( Simplisafe- great system to be able to bring from house to house with low monitoring fee).  I was able to put the house on the market and got it under contract in 10 days.  

Hi,

I am rehabbing a property in Philadelphia with intentions to flip it and I am a Realtor. The estimated completion date was April 1st initially and then with some added work that came up, we signed an addendum for an estimated completion date of April 17th. The contractor has told me that he would be finished on time, but know he is not showing up some days and obviously on other jobs. I still have a final payment of $5500. The total job was $36,000 and it has an estimated date of completion, but I did not write in any penalties if he didn't finish in time. I would say 75% was done and 25% left, but this last 25% has been about the same for the last 3 weeks. I have a feeling this might take another 2 months at this rate. I would love to just fire him and get someone else to come in and do the rest of the work in 2 weeks and just eat the difference. I had a contractor out and they said there is $8k worth of work left. (25% OF THE WHOLE JOB COMES OUT TO $9000.) I also have date stamp pictures from today (5-8-14) showing all the work that needs to still be done.

I have been told that if I were to fire him the contractor can file a mechanics lien for the last $5500, which does not make sense to me since he is well past his deadline and there is more than $5500 worth of work left. So can my contractor really take his good old time and finish whenever he wants with no recourse? Any suggestions?

He is being non-responsive now and I do not know what to do.

Please help!!