All Forum Posts by: Tom C

If you are doing the work yourself, go spend a day at Home Depot or Lowes looking over the material price. Take each dept and add write down the cost of things that you would replace during a typical rehab.

Understand how to build a relationship and realize that the payoff can be huge.

Don't promise something that you can't deliver on and return emails and phone calls promptly. If you cannot help someone tell them upfront, they will tell their friends about you even though you couldn't help them. If you string them on for days, they will never mention your name.

Excellent.. Happy rehabbing! Make sure you keep track of every expense so you can come back to tell us how you did.

I did confirm they are all month to month. Thanks

What are you complaining about for pete sake, they left the nice door knob and ceiling fan!! :roll:

I have been presented with a package deal. 7 homes a total of 11 units. When I evaluate the deal as a package it looks pretty good, but when I break each unit out and run the numbers several are falling short because the rents are below market.

My question is, how do you evaluate this deal, both ways as I am, then go back and get a better price on the low performers or do you simply look at the big picture or do I factor in that the rents have to come up to meet the market? I imagine I should be evaluating the deal as present market rents and not what he is currently getting.

I will present the deal details when I actually walk the properties.

"Now obviously I have to see the exact amount of work that needs to be done. But honestly I took a long look at the house twice. Once when I made the offer and just earlier this afternoon. "

I also have to say that if you have looked at this house twice now, you should know exactly what needs to be done and how much its going to cost within 1K to 2K. Don't make the same mistakes that I have made. You have move on these deals fast. I mentioned in a previous post about loosing a deal just last week. It was HUD listed for 21K, rehab 8 and ARV would have been in the low 70's. I am still kicking myself for not bidding the night that I looked at. I lost a years salary and sleep simply because I was waiting for a better price.

TC

Day,

If you have the funds or can get the funds go buy a SFR cheap, fix it up and rent it out. I really don't understand what you are waiting for. If you are unsure about a property, find one and list the details for us to provide advice. Really, its not that hard. Think about it this way. As long as your numbers are correct and we can help with that. What is the worse that can happen?

You need to look at the place. You are doing a lot of guessing. Is the house currently occupied? Whats the tax value on the house? Go look at the place and if its rentable or almost rentable, then grab it and rent it out for 350 a month.

Keep the whole transaction including repairs and closing cost under 32K and I would jump at it. If you find that things are tight later, let it season and refi for 30 years. Since you are only going 15 years, those rehab cost are going to be important. Do the work yourself, if you are a farmer, you certainly can do electrical and plumbing. You have nice equity in the deal.
Also your insurance is low. Remember landlord insurance is more.