All Forum Posts by: Lukas Vanagaitis

OMG, reconnected with BP years later and it's crazy. Dozens and dozens of flips later.... This first deal ended up a STORY. The worst deal in my career. Deal falling out of escrow the day of closing and profits turning into major losses, finally selling it days before hard money note was due and having 3 law-suits for damages caused by unprofessional broker, and buyer who blackmailed us together with a broker. I didn't even imagine things like this can happen in real life and it did on very first deal. Better deals in the future allowed to recover. Not afraid of 100 year flood zones, as long as there are comps sold. Need to look into common financing in the area - if most comps sold cash or conventional, then nothing to worry about, meaning higher possibility buyers have funds available for flood insurance. If common financing in the area is FHA and your flood ins is several thousand a year that significantly reduces buyer's DTI.

OK, so my answer is this. You do what gets you highest ROI. How do the comps look like? Maybe it's worth more converting 1/2 bath to full bath and having higher ARV? If your sold comps all have smaller kitchens and dining rooms, maybe there is no need to spend more money on bigger kitchen - meaning more cabinets, more granite, more money, but your sales price still the same.

you can still put 3-day eviction notice and start eviction when the ban is lifted. Rents are not granted, you still have to pay property taxes, insurance, the mortgage doesn't go anywhere as well as other holding costs. If they are left owing you money and move out, when the eviction ban is lifted, you can still file to collect the balance.

@Account Closed if I do owner finance, how to I cash out full amount at once? Or I don't?

Hello fellow investors!

We have some fully remodeled properties in Houston, TX that been on the market for longer than we want.

What are the best ways to liquidate them and get them off the books without leasing and refinancing?

Selling on terms? How do you structure it?

Thanks!

Thanks everyone for your input. We committed to the property, I'll keep the process posted here. 

@Fred Heller Yes, I revisited the property twice with contractors. We will most likely spend about $50,000+ in repairs, although, we bought the property for $115k (from $130k), so huge savings here. 

We bought it for $38/SF, comps are at $90-100/SF

The more I talk to investors who are flipping in the area, the more I hear that they won't lower their listing prices due to the flood.

Hello,

We are about to use HML for the first time.

We got multiple offer by lenders, most of them include fees we do not understand, such as THEIR closing costs and fees.

For example: 12% interest, 2 points + 3.5% 'OUR CLOSING COSTS' + Service fee of $749.

Another example: 10% interest + 'The range of points and closing fees will be approximately $7000.00 to $8000 . Included in this would be title, underwriting and document prep fees.'

Is this normal and typical? What HML has to do with TITLE fees and what is 'THEIR' closing?

Thanks

Hey everyone,

Is there anyone flipping flooded houses in Houston?

We are about to close on a deal in a 100-year floodplain. First time flood, got about 3-4 ft of water. 

Purchase Price - $130k, Repairs $30k, ARV - $235k. Flood insurance - $1,900/year, Property Taxes - $6,200, Rent ~$2,000

Numbers are great, but should a 100-year floodplain be a big concern? 

Is there any chance we won't get a permit to rebuild, or what are the chances that we'll be required to raise the house up? Any advise from experienced redeveloper would be highly appreciated.

Thanks guys 

BP Nation!

There are thousands of houses that will need repairs in Houston, TX.

No inventory problems for redevelopers.

QUESTIONS/CONCERNS:

- will Contractors be much more difficult to find?

-will Contractor bids increase and will take longer to complete remodels due to high demand for labor?

-Less buyers/more renters in Houston after the flood? Meaning harder to sell the projects?

Thanks for your input

Hello BP Nation!

I am looking to buy 4bed/3bath property in Texas, live in one room, rent out others - House-Hack. 

*No W-2 income - Self employed

*20-25% down payment + healthy bank account

*will have 3 roommates to pay the mortgage

*property purchase with 20-30% discount, would remodel before rented to increase equity

QUESTIONS/CONCERNS:

1. SRF is not considered an investment property if I lived in. I could pay cash for it with HML or PM and refinance, BUT since it is the primary residence, I'd have to wait for 2 years to refi. High interest rates for 2 years will just kill the cashflow...

2. SFR if not lived in, requires additional stream of income to show to the lender. I could then refi after 6 months if paid cash, but would not be able to House-Hack.

-What are the options to get financing on about $200k property if self-employed to house hack knowing all the factors above? Any input from lenders and fellow investors would be highly appreciated!

Thank you, team!