I'm on the mls and I see a property that has been on market for 204 days and going for $105k zestimate is $101k in a rental market in Decatur,Ga. Im looking to make an offer of $80k. I'm stuck on beginning the BRRRR. Not much work is needed on the property. Thinking $5k. How would one attempt this with a no money down approach?! Thanks guys!
In Idaho there are some first time home buyer programs that let you get in with minimum down. Check with a lender and see if you have those available. Your other option would be to find a private lender.
@Sarah Brown great advice. Than you for taking time out to respond. Would it be ok for first time home owners to make the property a rental?
Depends on the program. Some will allow it after a year, some require more years. None of them allow it out of the gate.
@Sarah Brown ok. That makes sense. Thanks!
@JaMario Price I'd recommend focusing on the comps rather than the zestimate for determing ARV. This along with the rehab estimate will help in your calculations.
Remember, your rehab with be greater than you think, especially if this is your first one
@Nathanael Rojas ok. Got you. I have propstream, so I will use propstream to do the comps. Great advice.
@JaMario Price I'd get out and network with other investors in your area. There are deals on the MLS, but they don't come around too often.
Your though process is good to offer $80K, but don’t be surprised if it’s considered way too low. It might be what it’s worth, but some people have a price in their mind and won’t budge, especially if there’s a large mortgage or something that needs to be paid off.
Also for BRRRR, you should be looking at older houses that need work. The Renovate ‘R' is where you force enough value into the house to make the refinance worthwhile.
@JaMario Price i have a lot of experience in the $0 down space. I think with this one you just simply offer less. It's been on the market a long time so clearly something is up. Offer what your willing to sign for . I am known to offer on 5-10 MLS properties over 10-20 periods all properties somewhat like this that I'm just simply trying to steal. See what someone is willing to come off. Just this weekend I had a deal that's been out 90 plus days. Great area good rent home. Has a survey issue which is prob throwing some people off. Was listed as high as 109k down to 89k. I offered I think 70 or so and they countered at $80k. So I'll walk it again and run numbers hard, counter again if I want to move forward and see what we get. Sometimes it works and sometimes it don't ! If it don't work all good !
@Brandon Richey I love that. I’m new but Im not worried about failing! I’m just taking action.
@JaMario Price yes go fail often and win sometimes. I'll say this ... there are deals out there and financing out there. You can absolutely buy properties with $0 down. I posted yesterday in a forum about my journey a little and my first two deals ever I literally got Money back at closing. Read that again! I have bought over half of my 28 properties $0 down and I'm in contract for one right now at $55k and the bank is lending me $68k... it needs some work but not 10-13k of work. I'll likely pay down the note immediately with the left over to knock down some interest. Go out and make your offer ! Finance after !
@Brandon Richey thanks!! I will!