All Forum Posts by: Ed L.

Impossible to say without looking at the interior.

Exterior look to be in good condition. Roof will probably cost 3-5K depending on the exact size and the amount of deck work needed.

Post photos of the interior and we can be much more helpful..

Some agents who don't know anything about rehabbing will grossly over exaggerate mold problems.

Sometimes the exterior will fool you though..

I went and looked at a house yesterday that looked great on the outside.. New hardy board, new windows, new roof...

Interior was absolutely horrifying. Foundation was uneven and it was like being drunk walking across the house.

Whoever did the roof should be hung. It was leaking EVERYWHERE... Mold everywhere, and the ceiling was caving in. House will never sell and will need to be demoed.

Little update on this one.

After digging through the old MLS listings and tax records last night I realized that the adjoining duplex was owned by a local realtor.

I called the guy up today to ask if he knew the history on the property...

Apparently he purchased the duplex and triplex together in 2006...

Unfortunately the closing attorney only transferred title to the duplex... The triplex was on a separate lot.

He said the taxes were being paid out of escrow and that he had no clue they were not being paid on the triplex....

Big stinking mess if I've ever seen one...Needless to say.... I won't be taking part in screwing the guy over any further or the sue fest afterwards....

There is something new to be learned every day!

On to the Next DEAL!!!

No problem, opinion greatly appreciated!

It's always better to question deals at this stage then at the closing table!

What I liked about it
1) Good area "Built out SFR"
2) Small investment
3) Decent Cash flow
4) Tenants in place
5) Met criteria for the 50% & 2%
6) Low Maint Brick on slab
7) Well maintained for a cheapo investment

My only major concern was the tax sale...

I was asking the LA about the current owner and she said it was a company out of Florida that specializes in tax sale purchases... Said she had sold for them in the past without incident....

Think I will pump the brakes and make some more calls before submitting a offer...

AH ha... Thanks very much for the recommendation...

My papa always said title insurance wasn't worth the paper it was printed on....

Thanks for the response Joel.

It is on the edge of zone AE.. 100yr elevation known... Definitely not a good thing, but not all that uncommon in my city due to several creeks that criss cross before dumping into the leaf river.

Would I be safe on the ownership issue if my title attorney does a title search and provides title insurance?

I'm guessing I would need to have the seller credit me for the security deposits that the PO basically stole from all the tenants?

What would be the best way to get all the tenants to resign new lease agreements? I'm apprehensive of dealing with tenants I did't hand pick.

Bump!
Plan on making offer in the am

Also edit my OP..

Gross lease is 1200 monthly instead of 1300....

Funny Story

I changed #'s about a year ago...

The brotha who got my old number was straight up gangsta... He ended the voicemail recording with "Quit Calling my Motha F(U(*) Phone & waisting my Motha F3$#$ time"

Embarassing part was that I still had the number on some of my signs.... Call it if you dare [REMOVED]....

Just say that you are calling about the house for sale if he answers....

There are 6 agents that handle most of the REO in my market..

3 Are genuinely good people, and treat me nicely because they know I don't waste their time.
1 is indifferent...
1 Funnels deals to his own investors.
1 is the devil.

A new triplex came on the market today.

1br/1ba kitchen and living room per unit. Each apartment rents for 400 per month.

Previous landlord paid water and maint.

Built in 1978, Brick exterior, Central H&A, good roof, and a good B location (Neighboring property are sfr).

It is fully occupied.

Asking price is 49,000... Gross Lease 1,300

Seems like a solid deal, but there are a few draw backs.

1) It is in a flood plain, although I didn't see any evidence of flooding.. "Just had a tropical storm" Extra insurance expense.

2) The current owner acquired the property through tax sale.

3) The previous owner(Tax Defaulter) has still been managing and collecting rent on the property that he no longer owns... I think he may even believe he still owns the property... Very puzzled by this after talking the the LA... I met with the tenants and they were pretty pissed at the guy for leasing them property he doesn't own.. They all wanted to continue leasing though.

Making things even more complicated is the fact that the Previous Owner, still owns a duplex that is basically on the same lot "Must have different deed/legal/tax id"

What should I be looking for with a property that was acquired through tax sale???

What all contingencies should I put in my offer that are specific to the situation?

Thanks for the help and guidance.

I asked my dad one time what he would do with 10 Million Free & Clear...

Without hesitation, he said he would be looking for a Hundred million dollar deal.....

At that moment I realized he hasn't worked in the past 15 years.... His favorite hobby is investing and there is nothing else he would rather do...

I personally would be happy living off interest for the rest of my life...If I could net 5% annual on 2 million I would be set..

I'd finish college, My Brokers Courses, and my pilots license... Free time would be great IMHO..