All Forum Posts by: William Wironen

@Ryan Murdock - You're completely right with the other utilities/snow removal... especially during the winter months and vacancies. Apparently it's been too long since I've been home. Also, you caught a major typo on my part, not sure how I missed it during my initial review. 

@Garret Getch - I hadn't thought about the additional income for parking. Not sure it would work out with this one since it appears to be a single lane driveway but for future properties that's a fantastic idea.

@Mike Roy - Thanks for confirming the management percentage I carried. I had done a little research but they vary significantly based on what you want to happen. Makes me feel a lot better knowing that my estimate wasn't off. I'll have to keep Bob's name handy for future conversations and analysis.

Everyone - thank you for the feedback, it's helped see the property from totally different perspectives. After updating the numbers to account for the recommendations here, I'm not sure this is the right property for me. But, I have a whole bunch of notes to ensure the next one is more closely aligned with that I'm looking for.

Thanks again,

William

I think i'm being pretty conservative on some of the numbers given the area but would like a second opinion on this duplex in Bath, ME.

Notes:

• Currently renting for $940 per unit but given the craigslist/rentometer data, could easily rent for $1100-1200/mo
• Management costs are set at 9% in the given scenario but we may be able to find lower costs/fewer features
• Estimated water/sewer costs based on usage in the area and recently updated rate tables

Any help or advice would be appreciated. My overall thought: try to get the property for less (I know, right?) and ensure the monthly rental rates at $1,100/mo are achievable with current tenants.

Thanks,

William

• View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Bob Langworthy I'll have to dig in a little more as far as Topsham rent is concerned. I was looking at data specific to 04086 but it may have been a broader scope. Do you have a good source you like to use for more specific data? 

Agreed, I was plugging numbers to figure out the math behind the calculators. My strengths lean more toward the technical side so I wanted to make sure I understood what I was using to guide my decisions.

As far as closing cost is concerned, the HML i've talked to stated that there were no closing costs above and beyond his origination points. Maybe that's my ignorance speaking but I haven't gotten very far into the whole process. Is that typically not the case?

Thanks for the response! This community is awesome.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hey everybody, there's a little bit of SWAG math in the report above but I've got a question I hope some of you may be able to help me with. I'm not really understanding how my cash on cash return could be infinite but I guess I don't have the best understanding of how it's calculated. The information in the report is just to be used for assistance with the explanation.

Thanks in advance!

Thanks, Rob Milliken. considering the state of the house, do you think a bank would be willing to lend even though it's been gutted?

Thanks everybody! I've got a little more research to do before approaching the family that own the house (contractors, subs, etc).

My wife is already a member at Camden National Bank so we may start there with some financing options and then move on to First National and HML options.

I'm home visiting my parents in Southern Maine and noticed that one of the houses in their growing neighborhood has been mistreated in the past few years. Apparently the elderly woman that had owned the house passed away and left it to her four daughters. Three of the daughters want to sell and the fourth does not.

The house has been vacant for years now and is starting to show its disrepair: siding is falling off, fascia and soffit have holes in them and critters are likely, apparently the inside is gutted (for the most part), etc. You all get the idea. The house is 2,500 SF on 1.08 acres in a well established neighborhood with new houses going in within a 1 mile radius worth around $450K. Within the past year the houses in the neighborhood have averaged about $120/SF with no fancy bells and whistles inside the homes.

My idea was to find a way to contact the owners and see if I can offer them a max of $150K (previous offers of $120K have been provided and turned down). The question I have now is funding because I don't have any partners or hard money lenders. Any recommendations on a loan option or route I can take to help get the funding? Feel free to reply here or message me directly.

I'm excited about the opportunity and appreciate any feedback!

William

Congratulations! I know you said your project manager help find the deal but what kind of challenges did you encounter doing all of this long distance (per your location next to your name)? I'm in OC and want to start my investing business but i'm the first to admit that i'm a little scared about the out of state aspect.

Hi all,

I've been reading a lot of the posts and researching the market in Kansas City for a while now and finally found a home i'm starting to get excited about. It was recently foreclosed on, 4 bed, 2.5 bath 2,000+ sft house in a well off neighborhood with a plot about 11,000 sft. The old saying "find the worst house in the best neighborhood you can afford" comes to mind immediately. 

I wanted to post on here because my wife and I have never purchased a home before and we're fighting the fear that comes with the transition from renting to buying. Eventually the goal would be to flip the foreclosure in a year or so after living in it while working.

It's selling for about $175K but I think we could probably get it for $170K. The market has been very hot over the summer but has cooled significantly as the school year started up and families got settled. After doing some comparable searches I think we could probably put it back on the market for $240K average once we do mostly cosmetic work. 

The biggest thing i've noticed from the pictures (we're going to see the house this afternoon) is the heating/AC unit is a bit rusty looking (image below) and the roof looks pretty dated. Is it worth the expense replacing a roof to increase the value of the home? Generally speaking, based on my research, it doesn't seem to increase the value enough to justify it.

Any guidance is appreciated.

Thanks,

William