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All Forum Posts by: Steve E.

Steve E. has started 6 posts and replied 34 times.

Hello friends. Been on the forum and have not found a single deal yet because of my very aggressive offers based on 50% and 2% rules. But here in Dallas the market is getting really hot and turning into a seller's market. Does not know if it is going to last or just another bubble.

Anyway a buddy of mine have found four duplexes in a small town outside of Dallas. Below are the details

4 side by side duplexes, asking price of $149,999 each.

Monthly rent of $750 to 800 per unit. Each unit is 3 bed, 2 bath, around 2600 sqft built in 2003

The current owner was the original builder and had listed those back in 2007 for $164K and it expired.

Property tax is $3,400 per year per duplex and insurance at $900 per year

One unit has a tenant from 2009 and now on month to month.
One unit has a lease until 01/2014 and the remaining units the lease is expiring in couple of months. The owner will provide estoppel.

Couple of units are on Housing Choice Voucher, county pays part of the rent, something like section 8.

Since the owner is a builder he does not have any expenses on record. He just provided a spreadsheet of repairs he performed in the past without a cost. I do not believe he never claimed any expenses in his return.

Now the property has been on the market for a while. My friend offered low $130K and the seller is firm on $142K a duplex. I tried explaining it to my friend but he is making an offer soon.

What do you all think, please provide your criticism and I can justify to my friend this is a good deal or not. Also what do you all think the reason the seller has this on sale?

Thanks in advance for the help everyone!

Post: Relisted HUD home

Steve E.Posted
  • Tulsa, OK
  • Posts 35
  • Votes 2

John Evan Miller, thanks for you input, apologize for the late reply as I was travelling.

Mike Hasemann, thanks for the detailed reply and will follow your advice? Also thanks for sharing your experience.

Post: Bidding on auction.com occupied property

Steve E.Posted
  • Tulsa, OK
  • Posts 35
  • Votes 2

@Eddie p, nice and good for you. I am sure it will work out for you?

@Brian burke, thanks for sharing.

Good luck to both of you and keep us posted.

Post: Bidding on auction.com occupied property

Steve E.Posted
  • Tulsa, OK
  • Posts 35
  • Votes 2

Joshua Dorkin, thanks for jumping in.

Devon McLaren, if you want to make a statement be an active poster here or register your company under the company profile. If you are trying to promote your company this hurts more than not posting, what I mean is first posting.

All,

The properties I was watching, all of them did not meet the reserve but went under Bid Pending Confirmation. I wish well to the winners of the bid and hope things work out for them.

Post: First Flip Done!

Steve E.Posted
  • Tulsa, OK
  • Posts 35
  • Votes 2

Congratulations David, excellent job. BTW did you attack this full time or a side gig?

Post: Relisted HUD home

Steve E.Posted
  • Tulsa, OK
  • Posts 35
  • Votes 2

Scott W., thanks and I am not depending on a loan and prepared for financing it.

Anyway, the comps for the property is $230K without considering the pool. Today I took a contractor out and the property needs around 8K in foundation repairs, the back of the house is sinking but the gc said it was not a problem. This house went under contract twice and the last time was on September 22nd and on the door the city had left a sign on Spetember 23rd saying they have turned the water on, but looks like noone entered the property since then. This is a two story and the water heater is in the attic and the pipes coming out of the water heater and around had been cut and vandalized. If they had turned on the water to the house without looking carefully at the water heater, it would have flooded the house and scared the Jesus out of a non investor. Anyway other than that it is just cosmetic. The roof might need some work and hvac might need replacement soon. So for buy and hold strategy, the GC said it would take $12-15K and to flip it will be around $30K. Also the pool is in a good shape and had a nice heated pool pump.

They had originally listed the property for $255k and eventually reduced to $230K, this is when it went under contract for $198K which is around 16% discount.

So if I can sell it for $225, then the repairs $30K, selling, holding cost for atleast six months would setback another $20k. So I have to acquire this property for around $150K. Is this a good offer number or am I low balling too much. Probably I would drive the realtor mad but it is my money, correct? What do you think my offer should be?
Thanks in advance

Post: HUD Due Diligence Period

Steve E.Posted
  • Tulsa, OK
  • Posts 35
  • Votes 2

J Scott, thanks for the detailed explanation as usual. I kept reading the 48 hour window but no one explained like you did. Last week one realtor claiming to be a Hud specialist swear they have 15 days and even sent me a pdf.

Anyway, the comps for the property is $230K without considering the pool. Today I took a contractor out and the property needs around 8K in foundation repairs, the back of the house is sinking but the gc said it was not a problem. This house went under contract twice and the last time was on September 22nd and on the door the city had left a sign on Spetember 23rd saying they have turned the water on, but looks like noone entered the property since then. This is a two story and the water heater is in the attic and the pipes coming out of the water heater and around had been cut and vandalized. If they had turned on the water to the house without looking carefully at the water heater, it would have flooded the house and scared the Jesus out of a non investor. Anyway other than that it is just cosmetic. The roof might need some work and hvac might need replacement soon. So for buy and hold strategy, the GC said it would take $12-15K and to flip it will be around $30K. Also the pool is in a good shape and had a nice heated pool pump.

They had originally listed the property for $255k and eventually reduced to $230K, this is when it went under contract for $198K which is around 16% discount.

So if I can sell it for $225, then the repairs $30K, selling, holding cost for atleast six months would setback another $20k. So I have to acquire this property for around $150K. Is this a good offer number or am I low balling too much. Probably I would drive the realtor mad but it is my money, correct? What do you think my offer should be?
Thanks in advance

Post: Bidding on auction.com occupied property

Steve E.Posted
  • Tulsa, OK
  • Posts 35
  • Votes 2

Rob K and Eddie P., thanks for sharing your experiences and it has been very valuable and I am going to follow Robert Steele 's advice since he is in my neck of the woods. Thanks Robert.

Post: HUD Due Diligence Period

Steve E.Posted
  • Tulsa, OK
  • Posts 35
  • Votes 2
Originally posted by Jon Holdman:
Do you mean the time period to do inspections and back out of your contract if there is a problem and still get your earnest money back? There is no such time period for HUDs. If you get an accepted contract, you can't get your EM back. Do any inspections before making the offer.

Thank you @jon and @jscott

Post: HUD Due Diligence Period

Steve E.Posted
  • Tulsa, OK
  • Posts 35
  • Votes 2

Hello,

Can someone please verify the due diligence period for a hud property? I see from the posts it is 48 hours but the below document states it is 15 days. So which one is correct? Thanks in advance.

http://idx-images.cisdata.net/acnt/images/533/AR302533/file_manager/User_Guide_for_Purchasing_HUD_Homes.pdf