All Forum Posts by: Will Stewart

are there a lot of homes around with the "house behind a house" setup nearby? i'd pull a few comps so you can get a good picture. some of the older towns around these parts, it isn't all that uncommon, wouldn't necessarily be a deal breaker.

@Sarah McCoy they will generally take 75% of income. Hopefully @Sean LeBlanc can give you a little more insight.

I agree with Robert M. I think I'd pursue a judgement.

@Chris Wallace

Credit cards? Personal loan from Lending Club or Prosper? Family? HELOC?

just an update, had the meeting with the assessor and was able to drop the assessed value by about $40k, saving me ~$1000 a year on property taxes (gotta love NH....). Well worth the conversation!

@Daria B

You mentioned 60k being the ARV (after repair value) but it's on sale for 129k?

The idea with cash out refinancing would be buy for 60k (with or without financing), put in 40k cash for repairs. At this point let's say the house is worth 130k. You can then refinance and take a loan for 130k*0.75 = 97.5k. Paying off your first loan and rehab costs leaves you 2500 total out of pocket. Look up the BRRRR strategy from @Brandon Turner

That being said sometimes it's best to avoid total dumps as your first major rehab(ask me how I know) because of things that will pop up. This sounds like it could be one of them. But everything can be fixed. 

Ahmed Poter has it right keep documentation of everything and take it from the security deposit. Maybe something in your lease would allow you to file for eviction if it's a recurring issue but obviously that's a lawyer question.

Poor landlord reference is reason enough to deny.

Definitely rentometer and comps on craigslist

I'd go for it if you are confident in your GC. Worst case fund the rehab out of pocket and cash out refinance later. You might find coming out of the rehab it'd be better to make it a flip, or you might decide to keep it. 1200 rent on 60+40k cost should cash flow nicely especially with all new stuff. Guess my only question is if the owner is asking 120 how do you plan to buy for 60?