All Forum Posts by: Shawn West

Hi, looking for purchase price advice.

I'm looking at a bank owned 3b 1ba 1300sqft 2 story home with large 2 car garage and fenced back yard that has been listed on the MLS for about 160 days. The neighborhood is quiet and in the middle of 2 cities, one 40,000 and one 70,000 pop. About 10 miles from each. The house is listed for $45,000 but after talking to the listing agent he knows it needs to drop in price. The house also needs a lot of work that I have calculated after getting different contractor bids and my own knowledge on rehab. Should be around $35,000 rehab costs. This is all still dependent on an inspection of the well and septic before purchase because I think that will change things big time if they are I need of repare or replacing. I have also calculated about $15,000 in fixed costs. So looking at the numbers it would be about $50,000 in rehab and fixed. The comps of 3:1 houses in the area are about $110,000. I'm looking for others thoughts on what my MAX purchase price should be and possibly what my start bid should be?

Thanks 

Yea I actually probably wouldn't continue using them forever and I do have other strategies but many times I'm maxed out on my line of credits or dept to income. Just thinking of other ways to get a little extra cash to finish deals and maximize. Funding seems to always be the hardest part. Thanks for the thoughts though.

Thanks for the great advice everyone. One more question. If I were to get a 0% card every year or 2 what should I do with it after the promotional 0% period is done? Should I cancel it or just shred it and keep it on my profile of cards but not using it? One way I worry about credit getting hurt with canceling and the other having so many cards under my name. Thoughts?

I've done the no interest many times. I just don't like to keep opening cards over the years. Speaking of that anyone have thoughts on continuly opening credit cards for the zero % interest term?

Thanks

Yes I love lines of credit and utilize them as often as possible. Actually just wondering if that seems like a decent idea for rehab or partial rehab costs if bank financing is out of the question. Its only 8-9% which is what I believe I'd be paying or more with private loans. Wondering if anyone has ever obtained a 8-9% credit card and used it like that?

Thanks for the input

So I was just wondering others thoughts on utilizing a credit card I am able to get with good credit that has an 8-9% interest rate? Thinking of utilizing it for short term fix and flips so I won't be hanging on to the balance long and it seems pretty low. Example being buy the property and utilize the low interest card for reno. Those rates seem just as low or lower than most private loans I've seen. Any thoughts?

Thanks

Welcome Mark,

I live in Cottage Grove so just east of Madison, barely. Anything I can help you with just ask.

Shawn 

Hey Ryan,

I'd look at some of what others have said and asked on this post then answer those questions for yourself to make a decision. Since it's a family property you should have plenty of insider knowledge to how renters are, condition of the property and maintenance needs. Personally I would manage it myself unless you have an overwhelming amount of other properties you already are dealing with. Sounds like a good one to have. Remember you can manage it without having to do any of the physical repaire work. Just find a good handyman and pay him to go fix whatever whenever when a tenant calls you. Don't think you really need a property management company for this. Like many have already said it's not all that far and you won't be there all the time.

Shawn. 

Thanks Philip.

Thanks everyone for your support. Devin I will definitely keep you in mind. Brandon I have set up some key words but listening to BP podcasts I need to set up some more. Dawn thanks for the heads up. I'll be flipping that soon. And Patrick I will keep you in mind as well. New or experienced both can be of help with this game. If I can help any of you in any way as well feel free to contact me.

Thanks Shawn