All Forum Posts by: Tom C

Arlene,

I would be afraid to invest out of my own town, let alone in another country. This could be why you are not getting much response.

BTW: Welcome

Honesty, compared to the others that are selling in this area, how does this house look? Can you sell it for more then 300K? Are you doing the rehab on your own? How long do you think the rehab will take and does the time that you are putting into it, justify the profit?

The other question I would ask is, are properties selling in this area that are not being offered at a big discount? I have to keep reminding myself that this is a different market then it was 6 months ago and in my area, nothing is selling at the old market value. Just this week 2 more homes went on the market next to my rental. That's 6 signs in the front yards of homes within 200 hundred yards of my place on the same street.

Mike is right here. She doesn't want to hear that this is a bad deal. An example of a good deal that I am still struggling with Ivy..

Duplex.

Asking price 24,9K
Offer = 21K
taxes = 700 per yr
Insurance = 500 per yr.
Tax assessed @ 41,4K Actual value 35K

Currently getting $450 per month each unit = $900 per month.

Owner pays gas, water, electric due to not having separate utilities. You would look at this as a sure winner. Now dig deeper and look at what those utilities are going to cost me during the winter. During the winter, I could be looking at $800 bucks a month utilities or more. There goes all my profit for the year.

You just are not being realistic.

As far as your BK, don't let the doom and gloom people scare you. My wife and I have a BK that is older then 2 yrs and less then 3 years old. Since then I have refi my personal home and obtained a loan on an investment property. Yes, you will pay a slightly higher interest rate, but there are banks that will give you a loan. Check with your local credit union first. Mine required 15% down, 10 yr term @ 8%. For 23K HUD home that was doable. As long as your credit score is in the mid 600's. There is no reason why you cannot obtain a loan. BTW: Wells Fargo refi'd my personal home after the BK was one year old.

Yes, you will have to have a company come out and do the job. My company provides certification up to 1 year and then for 80 bucks a year will continue to provide certification after each free inspection.

Thanks for the clarification. Yes, we can certainly buy these properties at that price. I understand that you are basically looking out for the banks interests, my point is that I am paying you, not the bank. So if you want to verify that the property is worth the purchase price that is great, but I want the FMV, not just what I have seen with appraisers lately. It seems almost like they will do enough leg work just prove the purchase price, but not anything more.

Thanks

Wow Love,

I have a real problem with what you said here. Is this what they teach appraisers in school? If I just spent a week locating a property owner in trouble and needing to sell, then spent another 3 hours haggling with them to get the lowest price. What business is it of the appraiser why or how I got that low price. The situtation you describe above will never allow us to get what the current market price is for a home. You should only take the home and recent comps into consideration. Not the selling price. MHO.

Does anyone know the best type of paint to use to paint hardwood flooring? Yea, I know, but I am not interested in refinishing it right now and its a rental.

Thanks

AllCash,

Excellent remarks, except for the 5K on the roof part. At least in my area, I can get a SFR tear off and reroof for 2K and thats not using illegals. :) So I can't imagine that a duplex would be much over 3K.

yllw98stng,

I can't answer your question, but I just figure I would say that I don't know how anyone can look at a roof and say its going to need replaced in 5 years. You could 20 year shingles up there and you could be on your 15 year and they could last another 15 years with a little patching. I would take the allowance and use it as a down payment.