Hello everyone. My name is Norman Whitley from Moderate Property Investors, LLC. I'm currently live in Greensboro NC. I'm new to REI but having been doing research and studying for almost two years now. Now I'm ready to take my leap to see if i can gather all the information and excel in this business. I met and investors who does investing international. He stated that he would sell his two properties to me once I told him I was and investor. One property is 3 bedrooms condo around 1200ft asking $65k and estimated at 74k. Zip code avg list price 174k. The second property 2 bedrooms townhouse 1100 ft asking 75k and estimated at 82k. Being that this is my first time I'm scared to step out there because 1) not sure if it's good enough deal 2) it felt in my lap too easy for it to be a good deal. Can you guys give me advice or help and I'll do a JV with you??
I think that you will need to ask yours of some questions before you move forward.
What is going to be the use of the property? What is the exit strategy? What are the rents and expenses? Have you done your due diligence? Can the area support rent increases? Is the seller willing to hold the loan?
I would ask several more based on the info you have given.
For a flip I usually buy the property for $100,000 less then the average ARV.
For a rental I usually but the property for $70,000 less then the ARV.
This gives me different options for an exit. Your properties only seem to have one exit and that is renting them.
What are the rental comps in the area? How much rental inventory is available in the area? Does the properties need rehab and if so how much? Have you laid eyes on the properties? When something is too easy then you need to ask more questions than normally.
Adam B. Please do your due diligence
Congratulations on getting a deal offered to you. Whether you pull the trigger or not, I'm sure that year of hard work and studying has helped lead you to this moment.
I don't know specifics about condos - although I don't like worrying about HOAs.
Since I invested in Jacksonville, Florida from Korea, I had to do a lot of due diligence online.
I compiled a bunch of my resources in this BiggerPockets Blog Post I wrote on Investing out of state.
It includes tool to use to check on employment, think through your goals, etc. If you're really familiar with your area, it might not help. But if it's an area you're not too familiar with and you're looking to gain some more insights, you might find it helpful.
Alright.. best of luck!
Hey Norman and welcome to BP. Everyone is providing great information. I'm a native and I currently reside in Jax... so I can give you my perspective on the area where these properties are located. Just shoot me a line and we'll discuss at a convenient time. Thanks!
What i was playing to do with the property is see if it's room to wholesale or flip.. I thought long and hard about going the direction of seeing if the seller will hold the loan for me. One property currently have a tenant in it. I'm still gaining info on how much the tenant is paying monthly for the property. I do believe that the property can support rent increase because it's within one mile of a university. I have ran the comps for the property. (Talking about the property for 75k) the property was bought in 2012 for 50k. Only one property like it was sold in the last 6months but when ran the comps for last 12 months. 2 properties just like it sold for 84k-93k. There is 1 property that's currently pending in the area with list price of 93k. There is 5 units like it currently for sale with list price of 91k-108k with 72-20 DOM
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