Rental Property Investor · Lafayette, IN · Member since 2016 · 9 posts · 2 votes
Hey everyone,
So after months of research, I'm about to close on my first investment property! Aside from being excited/terrified, I'm curious what people did or wished they did while waiting to close. I'm buying a SFH from HUD in Syracuse NY, using cash. It needs some renovation, and I have a tentative plan/budget. I've also prepared some pro formas. Anyone have any advice? I have to close by the 8th of October, but could be sooner.
Rental Property Investor · San Rafael, CA · Member since 2015 · 190 posts · 90 votes
10y
@Eric Hargitt, congrats! I bought a HUD home in the spring and I would say be patient on closing. At times it seems like it won't happen but eventually it does. My lawyer said the only good thing about a HUD home is the price and he was right (on the buying process, anyway). There were a bunch of times that my bank (out of state) didn't understand what he was asking for and the HUD sellers are all back up and overrun with process to boot. I would make sure you have the locksmith there on day one and lock the place down. If there has previously been vandalism and theft then clean it up (good suggestion from Steve on landscaping -- make it look nice right away) and maybe get one of those portable security systems? I haven't used one but it would be sad to start work on the place only to get wiped out by a break-in.
For that price are you on the north side? Mine was in westvale and cost $84k. Didn't need much work, though. Most of the cost was appliances, floor refinishing, carpet and a new roof.
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
10y
Congrats @Eric Hargitt! I remember those days. Excited and terrified.
Mostly wanted to congratulate you, but thought of possibly lining up your painter, landscaper, tradesman, etc to start work after closing may be a good idea if you need them. The good ones need lead time.
Do you plan on working on it and managing it yourself? Is it in your backyard? Share some numbers- price, work needed and rents expected!
Rental Property Investor · Lafayette, IN · Member since 2016 · 9 posts · 2 votes
10y
Thanks for the quick reply @Steve Vaughan. Some more info: We plan on doing all the work ourselves. We are getting it for $18.6k from HUD, with an ARV of around $45 - 50k. We plan on holding it, and expect to get $ 900 - 1k for rent. It's a 3bd/2br, and we're looking mainly at a carpet/paint rehab. Brand new PEX plumbing and electrical, probably due to theft. Other mechanical looking good, but will get a clean/inspect on HVAC. Some damage to both bathroom shower/tub walls due to copper theft, but nothing major. Fence needs to be demo-ed and yard needs some TLC. I live in Cicero NY, so about a 15 min drive from my house to the subject property.
East Syracuse, NY · Member since 2016 · 8 posts · 1 vote
10y
Eric Congrats. I too am awaiting an October closing on a HUD Home in Cicero NY. Floors Demo of Pool, Bathroom gut, new windows and roof. Hope we can button up before snowfall!!!! Only advice I can give you is keep track of expenses.
Rental Property Investor · San Rafael, CA · Member since 2015 · 190 posts · 90 votes
10y
@Eric Hargitt, congrats! I bought a HUD home in the spring and I would say be patient on closing. At times it seems like it won't happen but eventually it does. My lawyer said the only good thing about a HUD home is the price and he was right (on the buying process, anyway). There were a bunch of times that my bank (out of state) didn't understand what he was asking for and the HUD sellers are all back up and overrun with process to boot. I would make sure you have the locksmith there on day one and lock the place down. If there has previously been vandalism and theft then clean it up (good suggestion from Steve on landscaping -- make it look nice right away) and maybe get one of those portable security systems? I haven't used one but it would be sad to start work on the place only to get wiped out by a break-in.
For that price are you on the north side? Mine was in westvale and cost $84k. Didn't need much work, though. Most of the cost was appliances, floor refinishing, carpet and a new roof.