All Forum Posts by: Scott R.

IMO without knowing much more, it's not going to be a strong retail property and id make sure you want to fully rehab such a property. In Amarillo there is almost no retail market for anything under $80k, 80k puts payments at about the same as rent in "the hood" and people are expecting to pay that $600-800/mo, and therefore 50k properties don't sell to retail buyers often. There's tons of exceptions I'm sure, but your end user might end up being a investor using it as a rental, so think over your rehab investment very closly, 

Central heat may be needed but central air in a 50-60k house isn't generally needed. It will prob just end up getting stolen before it sells anyways, at least don't install the unit until closing.. Trust me on that one..

(Yes I'm assuming it's a 50k ish house ARV, maybe you stole a 150k house for $27?)

kinda broad advise as well as info about the property as well as the work.

Going into this blind is going to be costly.

What type of property is it? (Price range) if your flipping a 1200sqft in the hood its obviously going to be different then a 1200 is the best neighborhood.

What advise about hvac?

what are you looking for?

Have you found the properties?

there have been tons of attempts and very few are successful. Id look into the IROC meetings that the apartment association holds, those are the biggest meet ups  around this area im aware of, although it's geared towards newer investors.

just went by.,

Didn't notice any major issues with the walls looking through the windows.

Electrical and plumbing don't appear to have any major issues for the area, atleast not in my 5 minute inspection. Electric gas and water were all on, gas and water meters were not spinning so Id assume no major leaks.

The grass around the water spicket was 4x as high as other areas, so id assume it leaks or they left it on hooked up to a hose or something.

I did not go in the house, but the electrical was breakers not fuses, wasn't a federal pacific box, those are the big issues with this area and its free of those. 

Yes the wiring is prob 60 years old, yes it could be upgraded, yes it prob won't pass current code, but then again that could be said for 90% of the houses in the area.

Drain lines you'd have to pull a hydrostatic test to tell you much..

THERE IS NO CARPET in this house, no tack strips, and the hardwoods are terrible 

I typed out a huge reply last night then lost it when I hit post due to site Maintance :-/

not to be rude, but please answer my questions if you want me to answer yours.

Have you ever been to Amarillo?

Why invest in Amarillo?

Have you seen this house?

New carpet and windows are nice, but electrical and plumbing problems are real issues, and costly ones at that. The house "looks nice from outside" and better then most investment properties do, yes, but have you walked through it? I haven't (might tomorrow cause I need to see these bubbly walls) but I doubt the agent will allow me to schedule a showing since its under contract.

There's one a bit smaller a few blocks over, but it has a 1 car attached garage. While it does need some cosmetic issues addressed, I looked at it and (don't take this as advise get an inspection) don't believe that property has any major plumbing or electrical issues, it's $5000 less, and its a hud property that has been on the market 45+ days, could prob be had for $35k, and I promise you carpet and paint estimates are a lot easier to get and cheaper then electrical and plumbing issues.

My second concern, correct me if I'm wrong, but I'm assuming your Property manager is also your realtor (or atleast the same company if not same person) and they are also the listing agent for this property. I personally hate when realtors "double dip" because they should be getting you the best price and getting their seller the best price possible, and they often don't seem to suggest negioating in these situations as it just reduces their paycheck.

I don't think your $44k price is a bad price, and I don't think your $650/mo is a bad expected rent, my issue is the unknown which can be huge in plumbing and electrical.

I sold a house a few blocks north on Monroe a few months ago. Outside and roof were nice, needed some paint and flooring and a furnace. Was 3/1.5 with 1 car detached garage  I sold for $42, not sure how much he put into it but said he rented it for $850.

These are 1950s and 1960s pier and beam houaes, they not going to be perfect. Do you even know what a pier and beam house is? (Not to be rude but I didn't when I lived in Arizona)

This town is old school, most my deals are done with a handshake, it's just a different market. If your just investing here for cash flow and because you were recommended this area look into cheaper markets imo. Buffalo ny and lots of Ohio come to mind.

If I get a chance I'll go by the house today and check it out 

and just looked and im assuimg its on Monroe.. full price on day one? man!

looks decent from the one picture on the listing.. lol

IMO $45k should be move in ready.

Do you have ties to Amarillo? Have you seen this house? Why invest here? Was this on the MLS?

I've sold several houses in both the areas mentioned above and all but 1 was below your $44k

One was 3/2 and only $40k

Most had wall heaters or central furnaces only, the one that was higher, $50k actually had central air as well. 

Double post, sorry 

pm me the address and I'll go check it out for you if its vacant.. As mentioned above that jump across Washington st generally means a $10k plus price difference for the exact same house. One side is "retail able" while gables is mostly investor based.