All Forum Posts by: Ted Klein

That appears to be what I am seeing as there is a "Sheriffs Deed" recorded after the sale has take place. In this instance, do you know of anyway to find the "pre-foreclosure" properties?

I have been searching the Sedgwick County website and can't seem to find an option to search for "Notice of Default". Does anyone know what search term I should be searching or how to locate these?

Hello BP Members, 

@Jay Hinrichs

I just wanted to give this thread a bump. I believe I heard at one point that BP had over a million members and this topic has only 45 replies since it was posted three months ago.

Jay and a few other BP Members have taken on a worthy cause to help our veterans. They are raising donations and will be giving away a fully rehabbed home to a veteran. He has offered free advice for those who make a modest donation. Where else can you get advice from someone who has a 40 year background in all aspects of the real estate business.

Please show your support to our veterans and consider making a donation to this charitable cause in exchange for his expert advice. He is continually on the forums offering free advice through his replies to the forum topics. Why not make a donation and get an opportunity to speak with him personally and get your questions answered in real time.

I know I have made my donation and have spent time talking with him and feel the advice I got was beneficial to me.

Can we get a decent response to this and support his charitable cause?

Thanks,

Ted Klein

@John Leavelle The house is a bank owned auction property and we were able to gain access last week. The inside is in fairly good condition. I was figuring on only painting the inside and giving it a deep cleaning. It has tile and laminate floors so nothing needed there. While I know there is a reserve on the property, I do know what the listed price was on Zillow and it was bid up to $55k last week and didn't sell. So, I figure the number is somewhere pretty close to $60k.

Yes it would be a cash purchase. The $500 into the acquisition price was for the appraisal on the refinance, not sure how it ended up in there. I may be wrong, but, as far as I know, on a cash purchase there is no seasoning period. Since I have a very good relationship with my lender I have been able to close on my last two purchases in between 22-30 days. I already have did the pre-approval so this helps reduce the overall time to close.

I thought about leaving more cash in the deal to increase cash flow, but then that only exacerbates the lost opportunity cost on dead equity. I agree on sticking to a criteria, however, even with a high COCROI 259% of $143 monthly cashflow is only $21. Not hardly worth the trouble.

I did re-run the calculator leaving some more cash in the deal and only borrowing $45k and it then cash flows $280 per month with a 13.13% COCROI. It just seems to me that there is just not enough margin for the trouble. I forgot to mention, that this is also an OOS property, so it would need to meet my 15% COC criteria without leaving the extra cash in the deal. The lost opportunity cost is what I I should be trying to avoid in the BRRRR method correct?

If this property were to be a flip, it would require much more rehab thereby reducing the profit margin. Unless someone can explain it to make better sense, I am not seeing that this is a good BRRRR model at the hoped for 70% LTV I was expecting.

@Sam Shueh Sorry but, I am not sure what you mean by: "You are right it is a stumping ground to get into something better.", Then you mentioned I could spend 60k on a down payment on a mortgage. Was that a reference to this is a good deal? I guess I am confused... 

View report     *This link comes directly from our calculators, based on information input by the member who posted.

Hello Fellow BP'rs, I have found this property that I think I can get for around 60k and the area comps in like size and year built are around 108k. It appears that the area rents are able to support $1000 per mo. This would be an initial cash purchase so no hard money costs.

 I haven't did the BRRRR process  yet, so I would like to have someone look it over to see if I have the inputs correct.

The problem I see, it that the monthly cashflow is only $143.00. It shows a 265% year one COC return and a 7080% annualized total return at year one. Hearing those numbers, it seems like a killer deal, but with the low cashflow it causes some concern. Would this be a good short term deal just to do the BRRRR and then sell it or should I be looking at this as a flip? My thoughts are there isn't enough margin at 60k purchase.

Any Advise Please?? Thanks

Thanks for the referral.

@Joseph Gambino, ok I re-read the OP and now see that. I still stand by my recommendation not to friend your tenants, they will start asking for favors, then extensions on due dates. If you have developed a friendship with them, then you would be losing a friendship or money or both. Just sayin...

@Joseph Gambino as others have already said, don't rent to friends or family. You have a business to run and friending any tenant will only lead to problems. You can treat them nice and be respectful but being their friends will either cost you money, friendships or both.

@Joseph Gambino IMO, I am not sure I would use the security deposit for this repair. I would calmly talk to the tenant and explain this behaviour is unacceptable and tell him he needs to make restitution. You could offer to work with him on a payment schedule to pay for the repairs. The security deposit should be held for damages or lost rent. If you use it now, you'll have nothing left.