All Forum Posts by: Tim Youse

1 listing? Not a big enough sample size to make any kind of conclusion.

Did you talk to an accountant/tax preparer about this?

I would start there. I had similar questions/discussions with my accountant this year regarding a business my wife started and it turned out that since we weren't using the space in our home exclusively for her business, then we couldn't write it off. Your situation may be different of course.

Good luck!

The finance contingency was my realtor's idea... This particular realtor is one I've used for a primary residence that I knew I could get an offer in immediately once I found out that the bank was taking offers the following day.

I have been in contact with a different realtor who I plan to use for rentals and rehabs. When the two of us spoke last she too suggested no contingency offers - but only AFTER seeing the property first.

Since I didn't have a chance to see the place, I threw in the contingency... probably should have gone with a short inspection contingency as I could have bought with all cash.

Live and learn.

I agree - I would have looked at it first if I had the chance, but at the price it was listed at I felt comfortable putting in an offer, sight unseen, based on the local comps. 

The starving piranhas swooped in as it's under contract now after 5 days on the market - and not with me, so we won't know how much the bank took for it until is settles. I have a feeling it probably went for $160k to $180k, which would still net +$50k or more to an experienced flipper.

Not too many rehabs in this area for this particular home style, but here are a few comps:

1) This place is next door - sold for $330k - no interior shots in the listing, but I found a few - wasn't a new rehab at all:

https://www.redfin.com/MD/Catonsville/508-Forest-L...

2) This is around the corner $325

https://www.redfin.com/MD/Catonsville/403-Oak-Ct-2...

3) Rancher with similar SF - $310

https://www.redfin.com/MD/Catonsville/103-Glenrae-...

4) Renovated Rancher sold this week @ $360k - I think they're counting the finished basement in the overall SF

https://www.redfin.com/MD/Catonsville/122-Glenrae-...

5) and this one at $600! - did a large 2nd floor addition and added a spa out back...It's also in a nicer part of Catonsville, west of Rolling Rd.

In that situation, you could refinance to a conventional loan to pay off the HML...but wouldn't make much sense if the plan is to sell. It is an option though if the house were to sit on the market too long.

@Account Closed - the Sleuth! Not too hard to find looking up houses listed at $109k. :)

Any thoughts on the property?

Thanks Gina - will do.

There's more volume in the city for a wholesaler and no shortage of buyers who will take those deals, however if you can find deals in the areas you mentioned, they will go quick. 

It's probably too early to start a thread on the topic but figured I would since it's my first action I've taken since I began looking for properties several months ago.

I found an REO listed on the MLS yesterday and noticed it was listed at about 30% of the ARV of several comps in the immediate area.

The house itself is a 3/1 1200 sf cape cod outside of Baltimore in a desirable school district where the average home price is over $300k and most houses on this block were sold for between $325 and $400k. Photos of the interior show some flakey paint and dated interior, but nothing seems out of the ordinary - no signs of fire or flood or mold damage. Roof looks to be in good shape. Still has window units for AC, so I'll probably try to get CAC installed. 

House is in red and blue prices indicate the last 3 years of sold comps. House was listed at $109k and I offered $130k.

I contacted my realtor and he informed me that offers were being considered the following day (today) and they would be accepting the highest and best. So after looking at every comp online I could find, I decided to make an offer of $20k over list - without ever seeing the property - which if it's accepted would still give me an $84k budget to stay within the 65% rule. My realtor suggested a 7 day finance contingency to give us an out just in case we get in there and find something unforeseen.

So I should know by tomorrow if I'm joining the Flip Club.

Oh, and I finally ordered J Scott's books on flipping and estimating repairs...I might email him for some advice on this since he's local. :)

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