All Forum Posts by: Eric Davis

Closed on a house. Was supposed to get a check at closing. The title company said that the money was not ready and that they would deposit it into our account in a few days when it was ready. Is this normal?

To get this unit ready it will probably only take about 2 weeks. So I'm not even sure I would turn on the utilities until I bought the kitchen appliances. But let's say that all of that costs me $100/month which wouldn't kill the deal. Thanks for the links, I feel much better about this flip now!

Anyone know a HML that could maybe get better rates or less points?

I would be worried that those comps are over 3 months old. What would the rental rates be for the area?

Bank has foreclosed on end townhouse. The other end has just put their house on the market for $129,000. My realtor and I agreed that $115,000 should sell within a couple of months. I am looking at hard money lenders since I do not want to put up a lot of money for this property. HML that I have spoke with is charging 15% annually with 3.5 origination fees. Here is how I see the deal.

$115,000 ARV

$75,000 - Offer Amount
$ 5,000 - Repairs (kitchen appliances, flooring)
$ 2,625 - Origination Fees
$ 2,847 - HML holding costs (3 months)
$ 540 - HOA & Taxes (3 months)
$ 1,000 - Closing Costs (Buying)
$ 3,450 - Closing Costs (Selling)
$ 5,750 - Realtor Fees
$ 300 - Insurance
---------------------------------------
$96,512 - Total Costs

$115,000 Sale Price
-$ 96,512 Total Costs
------------------------------------
$18,488 Profit

Is there anything that I am missing or not thinking about? I feel very comfortable that this will sell quick because the area is nice for the price and townhouses typically are still selling in the $135,000 range. Did I calculate the HML amounts correct because it is much higher than I was expecting. Tips or suggestions? The bank wants our final offer by tomorrow.

I don't know about him but I know I would like to know.

Guys thanks so much for the advice. I had factored in the costs of metering each unit but not about the firewall. I'm going to have some contractors give me some quotes for the entire job tomorrow so I will ask about these issues. Thanks again!

I stalk these forums a good amount and would first like to thank everyone who continues to give great advice! I bought my first home a couple of years ago and using the knowledge on here put it on the market recently and had it under contract in under a week! So now I'm debating whether to flip a property before we leave the area in about 9 months. The property that I am looking at is completely out of my element since it isn't a personal residence.

It is smaller church that has been beaten up for years. So naturally I was interested in checking it out. It can be converted into a duplex but cannot have the footprint changed. The zoning lady that I talked to said that just putting a wall to section it off would be fine. (any red flags on this?) So anyways, here is what I'm looking at.

Asking $60,000 but I know the owner bought it for $35,000 a year and a half ago and did no work to it at all. Here is how I see the deal, please let me know if this is correct thinking for a flip.

$100,000 ARV
-$ 30,000 repairs
-$ 1,200 closing costs (purchase)
-$ 3,000 closing costs (sale)
-$ 1,200 holding costs
-$ 15,000 profit
-$ 5,000 realtor/concessions
--------------------------------------------------
$44,600 Offering Price

The reason I'm picking $100,000 ARV is simply because duplexes in the same area typically are going for around $120,000 and look dated and beat up. So I just want to be conservative on the sale price so that I can sell it quick. Is there a formula to figure the asking price if you know the rental rates? Would it also hurt that price if I lived in one of the units and only rented the other one out?

Ron Paul is the only one that cares for AMERICA.

The rest are for business interests.

Mike could you explain what you mean by having to account for the cost of the money. I figured if we picked it up for say 40,000 and we can bring in 300/month. We're looking at around 9% cash on cash return. I should have also mentioned that the rehabbed houses in the area are selling for 80,000. So I was thinking rent for 2 years with a little cash flow and then sell for at least 10,000 profit after we rehab.

The realtor told me that the seller is putting the price at what he owes. So if I offer lower, we are talking about a short sale to even make it possible. This is the cheapest property in the entire area, so I just don't see how it is possible to make the numbers work. Thanks for the help again.

Asking Price: 50,000
Taxes(annual): 220
Insurance(annual): 450
Monthly Rents: 600

We have considered offering all cash.
If we take a loan, we are looking at around 200/month.

I already have 4 people interested in renting.

We are hoping to pick it up for 42,000 but are offering 38,000 to start. I think I have finally found our first property.