All Forum Posts by: Tyler Hespeler

@Craig Bellot

I’ve been crunching the numbers for a while and was having a real hard time making the deal close to cash flow positive, then I realized I was using the appraised value instead of the assessed value to evaluate the taxes. This dropped the expenses about $100 and it may now work. For the mortgage I was using his original loan expense, so I think it will all depend on what the terms are when he refinanced it. What would you typically set aside for insurance?

Thanks,

Tyler

@David Kramer I was thinking I could just pay off the tax lien and sort of use that as my down payment.

It looks like I could safely get away with renting it for $1100 in this area based on CL and current Zillow listings.

According to the seller the minor updating meant kitchen cabinets and both exterior doors, however I will have a better idea once I check it out today.

The seller had said he would be looking for a little more than he owed which I think would be a stretch unless it is turnkey.

I think the Subject To would be my best route, I’ll have to look into that more, thanks!

Good Morning All,

I am meeting for my first potential deal today and I wanted to post the details up here so I can listen to any feed back.

-It is a deal with a private seller

-Its a 2 bed 1 bath in Groton, Connecticut and the information I have gathered from the seller/Town Clerk is as follows:

-Purchased for $85k, current loan is for $104K

-There is a $6K tax lien on the property

- According to the seller the house needs minor updating

-Seller believes the loan can be assumed

-ARV is about $140K

Originally I thought there would be way more equity because he said he had been making payments for 20 years but I didn't realize he had refinanced it.

My intent would be to buy and hold and since I don’t have a lot of cash, to use seller financing. I’m discovering this wouldn’t work with such low equity, and I really don’t see there being enough meat on the bone to flip or wholesale. Do I have any other options? I would really like to help this guy out. Any feedback is greatly appreciated.

Thanks!

@Bob Woelfel thanks that a really good point. I appreciate all the advice.

@Matt Altrich thanks. Yes that’s the exact point I’d plan on pressing to the seller, that they would need to pay the seller fee. Appreciate it!

@Bob Woelfel thanks, great advice. I suppose I should start looking around for and reaching out to cash buyers since I could stumble across a deal at anytime. Would you recommended chasing hard money or looking for seller financing for a first deal? Or would it wiser to invest in a more traditional way with a bank.

I have been spending a lot of time analyzing deals on the MLS and then driving the neighborhoods of these deals to check out what the area is like. It occurred to me that while I've been driving around, I could also start "Driving for Dollars" and take note of properties that look abandoned, and send letters to the owners. I've been researching this strategy and everywhere I've read seems to say to mention that you are a cash buyer. I'm still new to the game and do not have the funds to make a cash purchase. I am more looking to invest but I also am open to wholesaling. I was wondering if anyone has had experience with this strategy yielding sellers who are interested in seller financing, or going through a bank.

@Chris Babcock thanks, I’m not sure why I didn’t see this when you originally posted. I’m very familiar with that area but haven’t driven through it in a while. I’ll take a trip out there soon to check it out. Thanks again!

Hi @Rory Shaffer I'm relatively new to investing as well. I've spent a lot of time driving through the Norwich/New London area recently in search of my first deal. While I can't offer too much advice in terms of a business entity, like you said, it's helpful to know there are like-minded individuals in the area. If you're interested, there is a local REI meetup every month that I can give you the details to. Good luck!

Awesome, good to know.  I hadn't considered flood insurance but seeing that my current market is close the waterfront I'll have to keep that in mind. @matthew porcaro