Investor · Willow Spring, NC · Member since 2013 · 788 posts · 285 votes
12y
Originally posted by @J Scott:
Originally posted by @Scott K.:
WOW I am honored @J Scott . Just bought your books 10 mins ago.
In that case, I'm the one who's honored!!! :-)
One thing to keep in mind on properties like this -- if you're planning to sell for less than $50K, retail buyers are going to be very hard-pressed to find a lender who will lend (most conventional lenders won't lend under $50K).
So, you're either going to have to:
1. Sell to investors
2. Sell to retail cash buyers
3. Hold a note (lease option, lease purchase, seller financing, etc)
4. Find a lender who can do this and make your buyers use that lender
Good luck!
Somerset Lending Corp, [email protected], (248) 686-3542 - they do loans as low as $25k.
Its looks like you got a good oppurtinity here. If you don't mind me asking what was the offer you put in.
Well I would rather wait till I get a reply on it.
But it was cheaper than asking price.
I figure rip up all the carpet and really hope the hardwoods are good underneath. The basement I would just rip it all out and see where the budget is before deciding what to do with it.
I could put in the windows myself, replace the kitchen, Do all the demo myself. I would hire out as little as possible. Get a dumpster for $300 oroso and go to work.
The key in this area is to get a 3 bedroom. With this being a 2 bath and its not in the basement is a great great house to start with.
WOW...I can't believe asking price on that. You can't even get a mobile home around here for that price.
Good Luck with it!
There are many many houses in this certain city that need to be rehabbed. My plan is do as many 3 bedroom properties as possible and sell off half of them and keep the others long term. I would get out of this city and move up from there. This way I am not exposing myself in the beginning. Hell I could always section 8 this sucker for at least $850.
Investor · Atlanta, GA · Member since 2013 · 922 posts · 336 votes
12y
Hey Scott
Just curious. What will something like this rent for in that area?
I had a lady want to deed me her house for $10 in Michigan about 3 months ago. But the deal fell through. There were some back taxes and title issues i think.
Just curious. What will something like this rent for in that area?
I had a lady want to deed me her house for $10 in Michigan about 3 months ago. But the deal fell through. There were some back taxes and title issues i think.
this will rent for 800 all day if I need it for a rental.
Where was this house that she wanted to give you?
As long as you stay out of a few cities in this area that might have been a good deal.
Could not give me a house in Detroit. I know there are investors on this site that don't mind Detroit but the chaos in that city is not worth it to me.
Detroit, Inkster, Ecorse, River Rouge, Royal Oak Twp. Are all cities I would not be interested in. I know this area very well and see all the neighborhoods in this area. If you ever need me to do any drive by's to look at them let me know.
Also I you ever have title issues let me know, the Wife works for a national title company here in Michigan
Investor · Atlanta, GA · Member since 2013 · 922 posts · 336 votes
12y
It was a deal in the area of Highland Park i think. I will definately keep you in mind and shoot you leads i get and you can analyze them. I just don't know location. but i will say this. I have come across several deals under 2k in the state of Michigan.
I completely understand. I purchased one that had the exact asking price that was 1500sq. ft.. It was a 4 bedroom 2 bath. I gave a total of $10,500. The rents are around $550.
Wholesaler · Westminster, CO · Member since 2014 · 309 posts · 104 votes
12y
There are only 2 things I miss about living in the Detroit area...lake access and LOW home prices. It's not easy to find either of those things in Denver. Of course the worst part about living in Detroit is living in Detroit. Good luck on this deal, hope you get it!
It was a deal in the area of Highland Park i think. I will definately keep you in mind and shoot you leads i get and you can analyze them. I just don't know location. but i will say this. I have come across several deals under 2k in the state of Michigan.
I for got to have Highland Park In the list but Highland Park is a broke city that sits in the middle of Detroit. Be glad you passed on that deal. It is a bombed out city in worse shape than Detroit. So any properties you want me to go look at and check out the neighborhood just let me know. I drive all over this area for my job. I am an HUD inspector so I get all over the place
I don't want to rent this one. I want to sell it asap when its done. IF I GET IT that is.
I want to get a property but I need to do it smart and not just throw money at these properties
There are only 2 things I miss about living in the Detroit area...lake access and LOW home prices. It's not easy to find either of those things in Denver. Of course the worst part about living in Detroit is living in Detroit. Good luck on this deal, hope you get it!
All so true. I love the outdoors and Michigan is just great when its nice. It was 15 below today.
Houses are cheap but the rent is still at good rates
What's the ARV? What do you expect the rehab costs to be?
WOW I am honored @J Scott . Just bought your books 10 mins ago.
no more than 13k
ARV comps look to be about 41k. The problem is this area is all over the place with the style and sizes of these properties. This is a nice big corner lot. And it has 2 bathrooms on the main floor. Not many of those are around in this area.
I will having it look perfect. I can and will do many of the projects on this house
WOW I am honored @J Scott . Just bought your books 10 mins ago.
In that case, I'm the one who's honored!!! :-)
One thing to keep in mind on properties like this -- if you're planning to sell for less than $50K, retail buyers are going to be very hard-pressed to find a lender who will lend (most conventional lenders won't lend under $50K).
So, you're either going to have to:
1. Sell to investors
2. Sell to retail cash buyers
3. Hold a note (lease option, lease purchase, seller financing, etc)
4. Find a lender who can do this and make your buyers use that lender
Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes
12y
So is 50k the magic number I need to be above ARV. I will keep that as my target next time.
I love this site. I have been addicted to this site since last week. Either way if I get this property at the price I offered I will just keep it. It will be nice to have 2 paid off houses.
Go figure the worst property as far as under water on is the one I live in. Haha
Investor · Willow Spring, NC · Member since 2013 · 788 posts · 285 votes
12y
Originally posted by @J Scott:
Originally posted by @Scott K.:
WOW I am honored @J Scott . Just bought your books 10 mins ago.
In that case, I'm the one who's honored!!! :-)
One thing to keep in mind on properties like this -- if you're planning to sell for less than $50K, retail buyers are going to be very hard-pressed to find a lender who will lend (most conventional lenders won't lend under $50K).
So, you're either going to have to:
1. Sell to investors
2. Sell to retail cash buyers
3. Hold a note (lease option, lease purchase, seller financing, etc)
4. Find a lender who can do this and make your buyers use that lender
Good luck!
Somerset Lending Corp, [email protected], (248) 686-3542 - they do loans as low as $25k.
WOW I am honored @J Scott . Just bought your books 10 mins ago.
In that case, I'm the one who's honored!!! :-)
One thing to keep in mind on properties like this -- if you're planning to sell for less than $50K, retail buyers are going to be very hard-pressed to find a lender who will lend (most conventional lenders won't lend under $50K).
So, you're either going to have to:
1. Sell to investors
2. Sell to retail cash buyers
3. Hold a note (lease option, lease purchase, seller financing, etc)
4. Find a lender who can do this and make your buyers use that lender
Good luck!
Somerset Lending Corp, [email protected], (248) 686-3542 - they do loans as low as $25k.
Again that's why this site is awesome. All the help you guys give out for free is just the best. You guys don't know me from nothing but are willing to give very important info.
To track down that lender would have taken forever to find that place.
Again I thank you all and maybe in the future I can pay it forward on this site to others.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
12y
hi Scott, looks great from Cali. Are those property tax figures accurate? It seems crazy high at 10% currently or nearly 3 months rent. In business terms that tax is unacceptable being that you start 25% in the hole every year. Perhaps flip vs buy and hold.
Flint, MI · Member since 2013 · 106 posts · 38 votes
12y
The assessment is high and could be contested, but the property taxes here are very high across the board. That's part of the reason why rents are relatively higher than other areas. The taxes here aren't good for anyone but it's the price of admission.
Rental Property Investor · Hollis, NH · Member since 2013 · 78 posts · 7 votes
12y
Everything is relative. Property taxes in NH run around $4k-$5k/year for a starter home. I know people that pay $8k/year in property taxes. Rents can range from 900 - 1400/month for average apartments. So I would say 3 months rent to cover taxes is normal in this area. I guess that's the price we pay for not having any state income tax.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
12y
That's crazy property taxes from a buy and hold perspective. If this property does not appreciate or reassess lower, you could pay almost 3 times the value of the house in property taxes alone/ 30 yrs. In theory, even more than the mortgage in actual dollar cost. And after 30 years, possibly your still starting 25% in hole. This tax could wreck any business model. It's a borderline asset at best and true liabilty on paper. My guess is that property was same price 30 years ago not including inflation so actually lost 50% of value. What do you guys think?