All Forum Posts by: Sean Gallagher

Pretty much up to me what to do with it. They expect me to put money in it and resell to use towards multiple smaller deals. 

They are moving, I don't think they feel like getting it perfect to list on the market and extract full value, they would rather take equity in it at a discount to me and go retire with little worries/ the hassle.  I've been viewing some reo cash flow potential rental properties lately making offers and I guess they want to try and help out my buying power.  I can't refuse, it's a decent property too, before market crash was appraised in 250 range.  Now in 180s, why I said I'd like to hold but I refinance to extract equity it's chewing into cash flow as a rental.  I'm just gonna have to crunch numbers.  These processes are never easy ay?  Maybe with time and more experience it will be.

 8%?  You referring to closing cost, don't think it's as high as 8.  Yeh gov. loves to tax us

 This property is within the family 

so most likely I'd have to wait 6 Mos from purchase to do a cash out refinance and get back 75% of appraised. It's something to consider I guess.  Full equity would be nice but we'll see if I'm up for selling 

They expect me to flip it, take the equity and pursue other deals.  I'd probably get it around 36% below market.  I just know it has a lot of potential for appreciation I'd hate to miss out on.  I'll figure it out

Getting a home ready for rent compared to sell for full gain are two different renovations though, reason I'd want to rent it out for now.  It's really not in that bad of shape.  Little things for instance a chip in a counter top i would leave if renting compared to buying a new counter top if I was to sell.

Hmm what about getting financed on the home closer to market value/ appraised value, seller gets paid and then wires me the difference of what we agreed upon.  Sounds a little sketchy but I know the seller, what would prevent that from happening?  It's basically a gifted X amount 

Or say if property is appraised at 180k and it is purchased for 120k, I wonder if possible to finance for 180k

Creative suggestions for this scenario.  You purchase a property that winds up having about 60-80k of equity, in need of lots of minor repairs, 3br 2ba.  Only property owned, want to build on portfolio and maximize growth potential. Do you sell, collect all equity and spread it out amongst a few properties as down payments covering light repairs.  Or say rent and hold the property, but I don't see this as a viable option as all that equity could be put to use.  I've heard a little bit about cash out refi, not sure if that'd be a smart route, Ive read about all cash buyers doing this after they purchase a property and get it ready for rent.  I guess they go all cash to acquire the property fast and then cash out refi to get their money back and move on to the next.  Thoughts on a good move in this scenario?