All Forum Posts by: Shane M

Ohh yeah, actually 27K is what my spreadsheet says, apparently I cannot copy and paste lol.

Why would/wouldn't you buy a HUD?

Excellent explanation guys, I have to do this to everyone that overhears me talking about real estate investing.

So many people think their house is an investment and ironically these are the same people that discourage you from investing in real estate (outside of owning your own home). I tell them that they actually have it backwards, but by that point they are too belligerent to listen :( Ohh well, more opportunities for me!

Matty - Yes she is pushing for this, I believe the idea is to replace the failing automotive jobs with alternative energy jobs, especially in the engineering sector.

Since the auto industry has the potential to lead the alternative energy switch, there is some potential there. There is a lot of engineering talent in Michigan, but many are moving to other states. And most existing have experience strictly in the auto industry.

Kettering, Detroit Mercy, LTU, Wayne State and U of M have all been expanding alternative energy programs.

We just need alternative energy companies to move/start here so the grads don't leave the state when they finish school.

Is that carpet on the wall? lol

We all know that banks never want to go lower, especially when they just lowered the price. But obviously the longer it is sitting on their books, the lower they will be willing to go.

I've run the numbers on a bank owned priced at 35K (just lowered from 45K), 870 sq/ft (3BR, 2BA). I'm estimating 22K in repairs. We can keep the drywall, plumbing and electrical. Needs some cleaning and paint. No appliances or fixtures. Floors need all redone. Both bathrooms, kitchen need everything (maybe save one bathtub...). Possible furnace replacement (pending inspection - it is old but apparently functional). Windows and siding are actually in good shape. Roof is in good shape. 2 Car detached garage that needs all new siding and windows. Roof is alright.

Comps right now are riding at 80-100K, but because of the declining market I am conservatively estimating 70K final sale price. So 70% ARV puts my max offer at 26K including repairs.

So taking them down another 12K, not going to happen? Maybe let them sit a month? Once I have the offer in, should I just keep looking? Should I make the offer again in a month?

I've read (on here I believe) that this is a good book:

2009 National Repair and Remodeling Estimator

You might want to hire a contractor to do an estimate (some will do them for free). Build a relationship with someone that knows what they are doing and then when it comes to the job, make sure you hire them for it!

Chances are after one job referral, they will do your estimates for free. But it is worth paying a small fee if it gives you the chance to find a reliable contractor. Of course referrals go a long way too.

It wouldn't hurt to get some experience by shadowing another investor. They could give you some pointers on what to look for. You could also post stuff here if you aren't sure.

That is true, the water damage could serve as an excellent device to ward off other investors and even more effectively ward off regular buyers. It is bank owned, they just lowered the price by 10K (because of the water) and aren't budging, it has been on the market for under a month and I am looking at some other properties so I figure I can leave it on the wait list for now. In another month they may be open to further discounts....

Thanks Richard, very thorough response! Now when looking at gutting a room versus what some people may call a "redo" (kitchen redo, bath redo, etc). A redo would be primarily cosmetic, correct?