BRRRR Property Comes with a Boat!

[Scott Donahue]

Hello BP Community!

I recently purchased my first BRRRR property at a Sheriff's sale! Directly after purchasing I drove to the property and notified the former owner of the sale (being sensitive to their personal situation). Upon speaking to them it was abundantly clear there was no plan to leave the property anytime soon. Thinking of what would motivate me to leave, I offered them $1,000 to be out within two weeks (contingent upon a walkthrough of the property at the end of two weeks). That two weeks ended yesterday, so I brought my $1,000, and my eviction paperwork that I had filed on day 1 in the event the incentive didn't work, and prepared myself for my first rehab.

While the physical condition of the property hadn't been noticeably changed, there was stuff everywhere. Like, episode of hoarders everywhere. We are talking dumpster worth of garbage, pots, pans, furniture, brand new unopened tools, unopened amazon boxes, multiple lawn mowers, five weed wackers and a customer bowling ball. Since the value of the stuff they were leaving behind seemed to be worth more than the cost of a dumpster and a day of elbow grease to clean it up, I gave the former owner the agreed upon $1,000. He was thrilled to have enough cash for a security deposit on a rental. I was happy because he was out. Win-win.

However, there's one item he left behind that I'm not sure how to handle. A boat! Like, tow to a lake, fill with gas and party all day, boat. I asked him for the title, which he said may be buried somewhere under the piles and piles of garbage, but that I was unlikely to find it. He agreed to give it to me since he now had no place to store it. 

What do I do? Apply for a lost title? Fix it up and sail around the world? Become a pirate?

[Mark Fries]

@Scott Donahue

Buy another boat, a junker on craigslist with a title for $500 or $1000....transfer the title and get your new sticker and put that sticker and that boats tag on your other boats trailer...that's it...enjoy!!

Take the boat you bought on craigslist to the landfill after you take its identity.

[Gregory DeRosso]

Make a bill of sale. even if it for $0. Technically with no proof of title. We are unsure who owns it, but say that that they actually did, at least you have written proof that he gave it to you. In Nj and NJ you can search for title. I just did a quick google search and found this link for Indy. https://www.in.gov/bmv/2485.htm I'm not sure if it works but it looks like you've got your money back at least. 

[Bill Buzzell]

I bet you get more money for the scrap aluminum than that boat is even worth. I could be wrong , but a boat sitting for years will require lots of money to get into usable shape most of the time. 

Although you just might have a nice boat after all. It has the trailer and all. Has it been under some type of cover or has it been outside uncovered?

[William Miller]

Be a Pirate!! But first you should run the VIN/ HULL number. This may help also https://www.in.gov/bmv/2469.htm

[Kris L.]

Even if the boat is junk, I bet the trailer is worth a little bit.

[Bruce C.]

Mind telling us how much you paid, size, ARV, and how much you expect to spend fixing the house.

If you were in Texas I’d drive over and give you 1000 for the boat and trailer :)

[Scott Donahue]

@Gregory DeRosso Great idea on the bill of sale. I saw the former owner again yesterday! If I see him again I'll make him sign the BOS!

[Scott Donahue]

@William MillerAlso a good idea on running the VIN / Hull number.

[Scott Donahue]

@Bruce C. Thanks for asking! Here are the numbers on this deal. It's not going to be a perfect BRRRR as I'll probably leave $15k, but it's my first, so I didn't expect to hit it out of the park on the first try.

Paid: $101,500. 

Size: 3Br/2Ba and 1,265 sq. ft.. 

Repair Cost: $35k. 

ARV: $165k.

Net Cash Flow: $240/mo

CCR: 19.5%

My full analysis is shown below: