All Forum Posts by: Will Eagles

@Sergio Altomare Just sent you a text. I am just outside the city and would love to talk more about this property.

Ok, So i have posted on here quit a bite. I have been looking at deals and trying to get my head around what is a good deal. Im sure most of it is paralysis by analyisis but would love to have someone help me through this property. Im looking at it as a rental and its 3 townhomes down from me. These properties are renting extrememly high and are going for reasonable money. Here are the things I want help understanding.

Details of the property

• 3b/2b
• Mid row property
• Comps are anywhere from 205k-220k
• No asking price yet just a written for sale or rent sign on the door
• similar units renting for 1900-2100
• HOA of 170per month
• estimating 5-8k in rehab

Questions

• They are willing to sell or rent

(Would this leave them open to the idea of seller financing this deal, If so how do I approach it. Do I make an offer at or near asking or do I lowball it? By the way they asked me what price range I was willing to offer. This was odd to me but Im looking at the property today and I know what they are going for.)

• When making an offer based on seller financing how do I word my contract to protect myself and give me an out if things like inspection come back poor?
• What kind of money do people usually put down on a seller financed deal?
• If I was to go private or hard money to get in, should I be looking at buying it at 80% arv so that I can refi.
• What other issues will i face going the hard or private money route.

I know the area since I live very close in our first home that we bought and live in. We planned on keeping it as a rental because of the high rent in the area. (Currently 500 a month more than our FHA mortgage) I know that the area is hot and will rent quickly. I have some money to put down but need to get creative on the purchase since we just took out an FHA. If anyone has a creative way to approach this or a method they have used that would be great.

Im sure as I get replies more questions will arrise. 

So i have been watching a lot of the biggerpockets podcast and something keeps coming up. There are a lot of people who are using money from friends and family. How does this work? How do they get paid? How to I make money if I'm paying back a loan to friends and family. For example say I find a rental that I want to purchase. I raise the down payment money from family and buy the property. How do I pay them back but still make money every month? I feel like I'm missing something.

So I'm looking at hopefully getting my first flip under contract soon. My question is when getting a property under contract what contingencies and other things would be recommended to protect myself and have an out if say inspections are outrageous or my GC says my rehab estimates are way off, or private money falls through etc? Is there anything else I should be concerned with when getting a property under contract.

So the property continues to drop in price. Originally when I posted it was listed at 144k it's not down to 124k. I never made an offer the first round but will be going out to see the property again next week and possibly making an offer. Based on my previous analysis my MAO was about 105-110. That not far offer and would make even more sense at 90-100k. I will keep you informed.

Thanks I was thinking that. I will find a way.

So I have been driving my target area a lot on marking properties that are distressed and/or vacant that would be great to rehab. My question is how do I approach it from here? Mailer? Flyer? Phone call? I know calling or knocking is probably the last way since they may not like me asking to buy their house. Does anyone have a flyer template that seems to work well? Is that my best course of action?

Frank Romine I agree completely and that's why with some comps at 200k I figured 175-185 would be my sweet spot. I've figured out from this discussion that if I want it to work I would have to purchase for no more then 105k. Can't that happen? I don't know. I am walking the property tomorrow and will fill everyone in on how it looks.

Anna Buffkin Thanks for your advice. I know that when I ran my numbers renting wasn't An option so from what a few people have said I would probably take this property off my list unless we can really work the numbers.

@Lucas Machado Great point I will do a more detailed comps run and see what's going on. I feel comfortable saying that there are some that sold for 200k very similar to this one but some recent sales have been about 180k. So your right that there is something going on here. 

@Brent Coombs Valuable input. I will have to do more research in rent return in the area. What your saying is I need to make sure that if I did this it would work as a rental as a contingency plan if it doesn't sell?