All Forum Posts by: Terry Hoefer

Very good idea, Chris. Hadn't considered potentially financing future buyer. I was worried about not having a exit strategy. We have to get our offer in tomorrow-this place has been on the market for 3 days. Not a foreclosure or short sale. Agent will be presenting the owner with any/all offers this weekend. Now we're wondering if full price cash is enough. We don't want to get in a bidding war, don't want to miss a good deal, and don't want to squeeze that margin for profit. We do the work ourselves, but our time is worth a lot as we both have full time jobs. Decisions...

Our agent talked to the listing agent, who explained that the ratio of owner occupied to rental, lowers the value as far as underwriters are concerned. That is why the HOA doesn't want to allow any more rentals. We can pay cash at 39,900, but to sell would we be too limited because first time buyers usually need financing. HOA fees $175/mo, taxes $1400/yr.

We're seriously considering a 2 br 1.5 ba condo, listed at $39,900. Needs about 10-15k cosmetic work. Resale would be 75-80k. The catch?  Of the 32 units, 12 are rented, so underwriting could be a problem for buyers when we go to sell. Because of this our plan B, renting it out would be turned down by the association at this point. We would be paying all cash. Any advice?

My husband attended his first auction, just to see what it's about, with no intention of bidding. He looked at a particular house, researched comps , and the book at the courthouse listed it at $250k. The bidding starts, and this woman immediately bids $338K and some odd cents. "Sold".  This made no sense to my husband and he followed the woman outside and asked "do you mind telling me why you bid the amount you did? I'm new at this and I don't understand". She said "sure, that's what the bank told be to bid". Still makes no sense to us whatsoever. $80K over market value?? What are we missing?

Thanks Thad, very good advice

thanks for your input everyone-much appreciated!

Thank you, at least I know I'm not just being impatient. Your advice to not bother with the listed properties makes sense. Time for a new strategy...

after rehabbing/selling my mother-in-laws house, we decided to keep going and find another flip. We are looking in Waukesha County, Wisconsin. Our agent agrees that the banks are setting prices too high in our area to make a profit. We are in the starter home single family, 2-3 bed, 1-2 bath focus. Surprisingly some of these are selling, they must be all cash, which we are prepared to do, because no bank would lend for these dilapidated properties. Is this a local problem, and if so, how is anyone making any money this way?