All Forum Posts by: Yia Her

Wow tons of info. Thanks Stephen Brown . Would love to connect and share some ideas or more like picking your brain on the whole tailing part.

Normal for fha lenders to ask this. I even ran into a conventional 20% down loan on one of my flips and the underwriter wanted to know why I was selling for such a profit even when the appraisal came in at value/contract price. I told her, if Donald trump can profit from real estate I can too. In my flips, I normally provide scope of work in my disclosures so that everything is up front. One thing I do is screen the LO before getting into contract. Letting them know that this is a flip and ask if they are experience with flip homes and what they need. Typically, an experience LO will answer confidently that they have done many and know exactly what is require. Therefore going into the deal you'll know whether you need to provide these things or not.

Nice deal and work.

@Wendell De Guzman replacement reserves and capex are one and the same?  I have accounted for capex.  

@Wendell De Guzman  thanks for your input, I'll review this in more detail.  I have 10 days left to review.

William Walker the property "as is" sit about $210k. The seller is out of state and willing to sell at $180k. So I'm getting about $20k instant equity. Of course an appraisal will justify it but base on "like like" comps, the as is value currently is $210k. So the question is why would someone leave $20-$25k on the table, I guess that the difference between finding a good deal versus a market listing deal. On top of that I have some pretty cool guys who do excellent work and finishes that gives me great deal since I buy all my materials and they just charge labor.

@Nicholas W. - Actually I have been out of the rental game for a while and just put it there.  But I am going to change that on my end.  

@Nicholas W. yes, property taxes are about 1% of the assessed value.  The recorded purchase typically is what taxes is based on.  

@Thomas S. yes their equity of $100K in this property being tied up.  My goal was to refi and cash out my intital investment after putting a tenant in.  I'm trying to secure some rental properties with initial capital by buying at 70%-75% value and then liquidating my capital back out.  Good input on the landlord paying utilities.    

@Darren Budahn  I have some flips going on and this was one that I want to keep as rental since the condition of the property seems to be pretty good overall.  I'm looking at it from both an equity position and cash flow and it seems to work.  Sacramento has been pretty hot and literally you can't really find much of a deal under $200K in the particular location for a 4 bed 2 bath home.  

@Nicholas W. I walked the house and the big item tickets were checked off.  HVAC, electrical, siding, roof and windows are good.  I'm having a home inspection done this Thursday to ensure I didn't miss anything big but base on what I know and being a realtor familiarize with property values in this location, it seems to all make sense.  The age of the home is 1968.