All Forum Posts by: Bill F.

@Thomas Parsley I'd be interested to hear your thoughts on why SFR are a better option in the Jacksonville Market. What do you think a fair price for a 3/3 Townhome is?

Thanks!

@Troy Gravett and @Tony Figurelli  That is an idea that I hadn't thought of! What are the steps to go about 1. finding out if the loan is assumable and if it is, 2. assuming it?

@Kevin Hunter and @Dan Krupa. Thanks for taking the time to respond. I discovered some interesting information on the registry of deeds website. The current Deed of Trust, dated 06/02/2009, was issued for $81,400.00.  I think maybe some confusion between the original owner and executor may have lead to a misunderstanding in the outstanding loan amount. I have my agent looking bringing it up to the seller's agent tomorrow.  Based on historic rates and assuming timely payment the balance of the loan should fall between $68,000-72,000. I'll let you know what happens. 

Thanks for keeping me honest and reminding me not to fall in love with a deal though.

Hello All and thanks for the help in advance!.

I'm looking to buy my first rental property in Jacksonville NC (outside of Camp Lejeune, a Marine Corps Base). I have a cash offer in on a 10 year old, 1069 sq Foot, 3/3 Townhome that needs more than a little work (Replacing the carpets and linoleum with laminate floors, sanding, minor patching, painting walls, and re-seeding a 500 sq foot back yard), but not a full rehab. Total repairs sit around $10,000.00 on the high side. The property has been on the market for over two years while simultaneously being rented, though it has no tenants now due to the last ones leaving it in poor condition. After I made the offer the seller's agent told us the property is part of an estate and has an $81,000 outstanding mortgage. Consequently, that's the lowest price the seller will accept. The numbers don't work at that price and neither does the market support it; they most I'd offer is $69,000.00 and cover closing costs. With repairs my conservative CoC sits at 6.5% at that price point.

I remember listening to BP Podcast, though I can't remember which one, where the guest talked about solving the seller's problem. Right now they I believe that have unintentionally limited their options; few owner occupants (mainly military members) want the hassle or have the cash to buy the property and repair it. The price point doesn't work for investment for the reason I've stated. Finally, to make the property rent ready again will require $2,000.00-3,000.00. I suggested to my agent that I'd be willing to work with the seller in a short sale, but beyond that I'm stumped. I know if have the option to walk away, but does anyone have any other ideas of how to solve the seller's problem while still acquiring the property for a fair price?

Michael,

If the lots can be re-zoned, who is your customer and are they willing to pay 10-20K for a lot will  lots with no sewer, water, electrical hook up? If you live in an area where the land commands a premium this may be an option, but as @Jack Johnson said how long will it take for you to sell those lots? 

Have you thought about the impact of having seven new homes close by your original homes ARV?

Best of luck to you, 

-Bill

Hello everyone, My name is Bill. I live in the greater Jacksonville North Carolina area and have an interest in buy & hold real estate. The idea of producing passive income through cash flow, amortization, tax deduction, and appreciation fascinates me. I would love to connect with others in my area and learn from  your experiences and knowledge.