All Forum Posts by: Sean Cassidy

Good advice Colleen. I honestly keep thinking I'm missing some important piece of the rehab. Like there's a sinkhole or a portal to hell under the building... LOL.

I'll try to step away from it (HA, I'm too anal for that to work) and see if it still feels wrong tomorrow. 

@Arthur Lyons That's just the thing, the area is going to be flat on appreciation. I expect that. It's clean, low crime, small town kind of place. Seller inherited the place, is out of state. Sales here are slow in general, and dead on rehabs. If it was a fix and flip I'd never even have looked at it. But I own another rental right up the road and it wasn't an issue to fill it. 

The roof needs replaced and I know that, it's in the estimate.

I'm not 100% sure about the tenants, but they've been there for 2 years so that's cool. And if I didn't touch the 3rd unit it would still carry itself ok. 

Maybe I just lowball them down to 30k and hope they say no. If they accept I guess I gotta roll the dice on that one.

I'm looking at a deal here. It's a 3 unit, one of them is gutted, the other 2 are ok. It's a C building for sure, but in a decent area. It could be quite nice with some effort, and it already has cash flow from the renters that are in place.

I ran the numbers and they look good. But my gut feeling was wrong. So I built in a 50% markup on my rehab figuring this will cover pretty much anything that pops up, numbers STILL. LOOK. GOOD. Buuuuut, my gut still doesn't like it. 

So I got some comps and changed the 70% rule to the 50% rule just for kicks. Using 50% of ARV minus my inflated rehab estimate my calculator tells me to offer the seller an extra $100.00 over asking price. My gut still says not quite right.

I can't tell if my gut is thrown by a rare home-run, or if there's something I'm missing here. 

39.9k asking

45k rehab (with 50% markup) 

125k+ for comps

This alone looks good.

If I offer 35k they'd take it. Why is my gut saying no... What am I missing? !

If it's up for auction I do believe it's already been foreclosed on.

I would likely take this deal. However, being it's the mother in law I might not just because I don't like my mother in law.

Talk to local banks and credit unions first. I have good luck with the latter.

You could also try private money or hard money then refi out at a later time, but it's expensive. 

I own a 3 unit from 1890, solid as a rock. But, the last guy updated everything and it bankrupted him... So, yeah.

With no money down? Doable, but nearly impossible. Do you have assets you hold already? Some cash? A history of managing the type of property you're trying to buy?

If you can't sell it because of the neighbor, do you not suspect that will hurt the quality of tenants as well?

Foundations are tricky. I would get more quotes for sure.