All Forum Posts by: Zac Burke

I have bought (1)  property off auction.com

I had to submit an earnest money deposit of 2500 or a percentage before I could bid, whichever was higher. 

There was a reserve on the property. I called and asked about the reserve and the told me they could not give me an exact number but they could do what they call the "stoplight system." Just like a traditional stoplight red, yellow, green. They asked me what I was willing to bid up to and would give me a light color based on the likelihood that my bid would get accepted. Red not likely, yellow possibly, and is green very likely. If it was red you could adjust your answer. In my case I was green right off the bat. 

During the auction itself they have feature where if you bid in the last "x" amount of time the clock resets to allow competitors to bid. I forgot the specifics but I think it added an entire extra minute. My final battle was about a half hour. 

Payment was due in full within 24 hours via bank wire transfer (- the EMD). Some auctions also have a buyers premium or something like that as an additional charge of 5% I believe. It says it in plain sight so you can keep that in your mind when coming up with a number for your max bid.

I made payment the next day. My contact stated I had 30 days to close and I would receive a special warranty deed. If i didn't close within the time frame I would get a quit claim deed and a fee tacked on for each day. 

******The closing was my only issue with this process. I was contacted within a few days from the appointed lawyer who got my info and said they would be in touch as soon as they could. After a week I reached out and they were "waiting on paperwork". And same deal after 2 and 3 weeks. Finally on day 26 which was a Monday afternoon they reached out and said we need to close by Friday. I could not even call any lawyers until Tuesday. Luckily I found a lawyer to make it work on 4 days notice. 

I signed and took keys on that Friday. 

Sorry for the long post but I wanted to be thorough and I hope it helps. 

Don't hesitate to reach out if you have any questions. PM I don't check my notifications as much as a should 

@Shawn Ackerman How often are you seeing turn over? If you're cash flowing that high most of the year it seems like it might be worth the turn over as long as its not every other month. I get why some people wouldn't want to go through that hassle if they were managing tenants themselves but if you're out of state it's a PM thats doing the work. They know the game, it's what they do. I understand not wanting to do it as a long term strategy but it could definitely be a quick way to build up your funds for the first few years you're starting out.

This also has potential to be an income generator. There are several other properties on the lake that are rentals and get 1200+ per week, all the way up to 2100 per week.

Waterfront Adirondack property in the Tug Hill region, most notable for the heavy amounts of snowfall it receives. A snow mobile paradise in winter and a beautiful Adirondack Escape in the summer. 5 beds/3 bath. Furnace & roof done 2017. Motivated seller

This beautiful five bedroom lakefront Brantingham home is already set for year-round use and set up well for large or small or groups. The first floor offers breathtaking views from the living room and dining area, three bedrooms, two full baths and galley style kitchen. The basement is also finished offering a second kitchen, living area, large bedroom with lakefront views, a third full bath, utility room and enclosed patio area overlooking the large dock and shoreline. The home includes many recent updates including hardwood flooring, pine cathedral ceilings, steel roof, vinyl siding, interior paint, new exterior staircase to the shoreline, new docks and more. Don't miss out on this opportunity. Make 2018 the year you make the move!

Property is listed with a realtor
http://www.goodmorningrealty.com/listing/S1094869/

Is it going to have tenants in place? 

Any update on the property yet???

A 15 year mtg would be roughly 560/month. Probably about 300 for taxes. (I have the same style house in south Utica and taxes are 3600). insurance roughly 100, probably a little more.. Water is going to run you roughly 50/ month. 5% vacancy-80..5 % repairs-80.. Roughly 10% for a PM-160.... And if you can find a bank to loan you at 4% on an investment and only 5% down definitely let me know... You could do FHA and say you live there... You probably want to run more like 10% for repairs if you don't have much saved, build up your reserves quicker.. And the bank is going to want to see some decent money for reserves.. I'm coming up with 1410 for expenses.. Stretching it out to 30 years would help your cash flow for sure....... If you're considering student rentals there is a house on downer for roughly 50k, if I remember correctly.. I think 900 something.. 3 bed 1 bath. I believe it has all new mechanicals like electric, hvac etc. Your insurance would be cheaper because the house is half the size of that 2 family. And your property insurance would most likely be lower. You are more likely to have to put down 20% on a investment property.. With that house you're only looking at 10k..less if you talk them down. 50k mtg over 30 years is super low.. If you could get 3 UC students in there for 500 each your gross would be almost as much as the 2 family... Granted your going to have to pay heat, electric and wifi.. As is the norm for college rentals but there looks like a good amount of room in those numbers.

@William Newman Is this still available?? If you could. send me some info- [email protected]

I'm Keeping an eye on this thread. Thanks for the update! 

There are also some on Craigslist... Can't vouch for how good they are, but you could always call and vet them out