First house purchase Dallas

8 Replies

I've been wholesaling for 3yrs now and I did my first flip last year. Now am considering buying first house in garland TX close to where I live. It is a short sale that I hv been working on for over a month now. I first drove by the house an noticed it was vacant with a bunch of mail pilled up and notices on the door. I skip traced and called the owner lady in oklahoma who has been back in oklahoma since 2015 when she left dallas because her husband who she lived in the house with died. The husband bought the house before they married in 96'. And she was gonna let it go to foreclosure cuz she couldn't afford the 900/mo payment by herself. So I sent my real estate agent up to oklahoma and she gave him power of attorney to get this done. We spoke to the lender who has had the debt for 2yrs and has it in pre foreclosure status for a year but nothing has been filled yet with county. They said it was on hold and would be open to short sale and actually they would approve a settlement price if after running her credit she is under 550 which I'm sure she is. So she owes 60k principal balance on the house but she hasn't made a mortgage payment in 3yrs so all the payments and fees and everything is like 35k so payoff today would be 95k. It's a 3/1 1000sqft 1950's home. Tax value of the house is 90k and ARV is 140k for 3/1's in the area. I see a couple comps that converted the laundry room into a second bath with stand up shower and sold for 180k. Rent is 1200-1300 in area for 3/1. So I gave the bank 60k offer and they said to get title to send the pre luminary hud.(sounds like they will move on it?!). I have cash offer for 90k. So I could wholesale it and make 30k. But I'm thinking about buying it cuz it seems like a home run deal. I can't go conventional with financing because I currently hv two car notes and one is a range rover(that I need to get out of an upside down 10kon) so I asked my landlord to be private lender (I pay him every month on the 1st at 9am for two yrs so I figured we've got great rapport) he met me at the house an said he would give me 70k at 8%. (60k to buy and 10k to fix). I'm thinking it's gonna take 15k to get rent ready so I'd hv to pay whatever over 10k. Rent rehab list: 1. Pull up carpet and install Laminate wood flooring through living, hall and 3beds 2. 9 doors 3. 8 Windows 4. 1 Toilet seat 5. 1 Bath tub 6. Bathroom tiles 7. Kitchen tiles 8 Water Heater tank 9. HVAC system 10. Roof is 10yrs old has a leak in master room. Need to get it looked at. Prolly can just patch 11. Foundation got a bid for 3200 for 9pillars lifting backside of house which is 2" lower 12. New Kitchen counters 13. Kitchen range 14. Sheetrock for garage space 15. Lighting fixtures 16. Vent covers 17. Paint Please any feedback appreciated. I love BP

Im in the middle of a similar rehab and our estimated cost was 35k. We’ve already gone over 45k and aren’t done yet. Be very careful when GCs give you a verbal estimate. Get it in writing and go over it. Twice. W someone you trust

I agree with Bret, My HVAC alone for a 1469 sqft home was $7000+ I know that house is a bit smaller, just heed caution and look at your numbers closely. Flooring can run high as well if you're not careful. Just a couple things to think about. You might go to Lowes or Home Depot and get your own pricing estimates on materials and such then use the BP calculators to make sure your on budget. 

The item you are referring to inside the closet within the house is the air handler and is usually a large metal box containing a blower, heating or cooling elements, 

Let me add that if the air handler looks old, you may want to have someone do a system check on the whole system. it's usually inexpensive and could save you if all that's needed in cleaning up. On the other hand depending on what you plan to do with the property after rehab you may want to update it. Just listen to the person that inspects it. When I brought my house the HVAC was "okay" but kicked the bucket 3 yrs later.

I would choose someone reputable like Baker Brothers or A#1 Air in our area, just to name a couple you can locate other really good contractors in BP and byGoogle swaech I would just make sure they are someone you can trust. 

You will need to have the power on so they can run the system and test it properly. I don't think they need power to test the coolany but I'm not an HVAC tech. That's a question for them to answer. There is usually a sticker on the side of the unit to give basic info though. 

Hi Shella,

So, how did this one turn out? I just found this thread and it looks like it is about a month old. I have a few SFR in Garland, but haven't tackled a remodel yet, so I was a bit intrigued on this one.