New to investing and I have an opportunity!! What would y’all do?

Question

So I have this investor wanting to buy a group of houses but can't buy separate. He wants to sell me one for $30,000 in an area where the ARV is around $120,000 to $135,000. But the house needs $60,000 worth of work to get it to that. It looks like a good deal, but how would y'all go at acquiring the property? Would y'all pay straight cash for it all or would you let the bank pay for it. I plan on refinancing to get my money out. Also would yall keep it and rent it out or just flip it? I'm new to investing so any advice would be great. Thank

You!!

Ronald Allen Barney · Answer

@Matthew Bell Another question is if the $60k figure comes from a GC you can trust or is that the other investor trying to make the deal look attractive?  What if you pull the trigger and a real contractor says the rehab is $90k?  Nail down all numbers in your equation to make sure they're really what you're looking at.  BRRRR versus flip is driven by home values relative to rent, obviously.  In any situation where you can get bank funding get it.  The more cash you save the more deals you can buy.

Matthew Bell · Answer

@Aaron K. he said I could get up to 3 of them, and I just want 1 to start with. He knows I want to get into investing and is trying to help. But I’m going to run my own numbers on it and see what I come up with before progressing further.

Matthew Bell · Answer

@ronald

@Ronald Allen Barney he is a friend of mine who has done quite a few houses for him self and others. But I will run my own numbers to see if it turns out the same or close to it. Thank you!!

Aaron K. · Answer

@Matthew Bell that explanation from the seller should not be satisfactory, the jump from 1 to 2 homes is a lot even 2 to 3.  But the jump from 5 to 6 seems smaller and out of all 6 homes why is this the one they want to part with, also make sure to get your own rehab numbers, so that you have the most accurate picture possible.

Matthew Bell · Answer

@Aaron K. the only way he can buy the properties is with all of the homes. He is getting 5 or 6 and he doesn’t want to take all that on at one time. I originally want to do a Brrrr.

Aaron K. · Answer

@Matthew Bell question number one should be why the person buying the package doesn't want it?  What you should do with it after will depend on where it is and what it would rent for.  If you plan on flipping a bank loan probably doesn't make sense, and with that low of a purchase price it probably won't be able to be traditionally financed, the main way you might get a bank involved would be some form of construction loan.

New to investing and I have an opportunity!! What would y’all do?

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