All Forum Posts by: Timothy Hood

Update:

Wrote offer for $30K two days ago.  When realtor logged on to HomePath site, he made it sound like there were no offers and mine might end up being the only one.  Haven't heard anything from him since then.  Called and left messages twice today with no response.  Not sure what's going on.

Maybe someone made a better offer and mine is off the table.  Shouldn't he still be obligated to call and let me know?  Maybe he is just really busy today.

Anyway, thanks to everyone that's responded to this post.  Your ideas and insights have been very helpful.

Update to last post: that $35 should be $35K.

Ned, they can be rented.  Don't yet know if there is a limit.

Nazz, Assuming $35 purchase price, 8.3% vacancy, $700/year for repairs & advertising:

at $650/mo. rent, BTCF = $1935/yr if financed at 75% LTV

    BTCF = #3626/yr if cash paid

at $700/mo. rent, BTCF = $2485 and $4176 respectively

Thanks for your replies.

Still would like to know what to look for in the financials and if there are any hidden costs to buying through HomePath.

Thanks again.

Hello Everyone,

I'm going to write an offer on a Fannie Mae REO condo marketed by HomePath.

The property is 2bed/1bath unit listed at 45K.  Another unit in the same building sold for 35K earlier this year so that's what I'll offer.  If purchased at this price it should cash flow pretty good.  Rent should be $650-$700/month with tenant paying utilities.  I would pay the $125/month COA fee plus property tax and insurance.

So far I have seen the Association's executive summary and regulations.  I will see the financials when I write the offer and the agent says I can back out of the deal if I don't like what I find in the first seven days.

I'm concerned about special assessments or other unforeseen cost as I have yet to see the financials.

Anybody, especially Wisconsin investors, have any advice about what to look out for?

Thanks in advance,

Tim

Great information.  Thanks everyone.

Thanks for the information.  I assume, for you, most (or all) winter acquisitions have turned out well - meaning no unpleasant surprise in the Spring when things are easier to see.

Has anyone had the opposite experience and found out in the Spring that there are large expenses for things like foundations, siding, or roofs that weren't detected because the property was inspected while snow and ice were present?  Is the inspector liable for such expenses if s/he misses them in the inspection report?

I live in Wisconsin and was wondering if there are issues relating to property inspections when there may be snow and ice obstructing critical areas like roofs and foundations.

Responses from investors in Wisconsin or similar areas is appreciated.

Thanks for the replies.

The tax bill shows "special assessments" for the the last 6 or so years that maybe total $2000 tops. Any other surprises I should be aware of if I were the winning bidder? The county currently owns the property so do I still need to research title for liens?

Any ideas about what a winning bid would be given the facts in my original post? House is about 1500 sq.ft. on .9 acre lot.

Also, as mentioned above, this needs extensive exterior and interior repairs. Exterior: new siding, soffit, fascia, window glass, front door, other. Interior: haven't been inside, but probably - plumbing, carpet, vinyl flooring, drywall, paint, possibly mechanicals and more. There is a large broken window so I'm sure there has to be some interior water damage.

I don't have any experience estimating repair costs. Has anybody rehabbed a property in this condition? Was was your experience/cost? Will $50K be enough? 

Thanks again, Tim

Thanks for your answers.  As this would be a partnership with my girlfriend, should I have an attorney assist us?

Should I start and fund a business (LLC) before acquiring my first property?