All Forum Posts by: Alexander Felice

What area of Fayetteville is it in? We are not in an appreciating market. 

Rentals are good here, and flipping is good if you stay under $120 ARV. Too many local builders are cranking out 2500sqft brand new homes for 200k.

I wouldn't count on any profit from the house to be blunt. There are a TON of improvements to our town in both infrastructure and new growth lately. If you live near some of these improvements you may see some appreciation hopefully, but I wouldn't count on it. 

@Christian Bors I can't say if $900 is too much because I don't know the models (nor am I an expert in appliances)

Try not to overthink it. Find a good deal on either and take it. Appliances should last a while, and as @Andrew Syrios said the price difference between white and SS shouldn't be that much. I would go SS personally. People love SS over white and its a decent value-add for not much cost increase. 

At that rental price in my market it would command SS appliances. 

every market is different. A quick craigslist search should give you an idea of what similar rentals are offering. Also, I always recommend looking into used appliances. There are a few places like that around me, there might be one around you as well. Huge discounts, most of them look nearly new and most are warrantied for a year or two. Can't get matching sets this way, but I don't much care about that. Getting a set of 90% perfect SS for $600 is win/win. def worth looking into. 

well you said yourself you knew she paid 750 and it's only worth 650. What are your rent payments, odds are she is cashflowing negative as well. I highly doubt she has any equity.

Certainly worth bringing up a discussion though. I'm not a wholesaler so I can't really give you any advice in that area. 

If you have a car loan paid on well, you probably have the score needed to secure a mortgage.

if the car note is close to the financed amount of the house you want, that will be really good as well (your 'high credit' amount)

next thing you have to look at is debt to income (DTI). what are you making at 19 that would allow you to have a car, and a house? Most lenders are going to want you to be at 35-40% of your gross income for your note.

if you think you have that all lined up, then just start talking to 2-3 mortgage brokers for pre-approval letters. 

Renting your personal residence isn't a bad idea. 

You personal residence isn't really a good investment, it's an expense. You get no cashflow, and IF you gain any appreciation you have to sell (and get another expense) to cash out. 

Not sure what your personal finances are like, but ~500k will leave you with a hefty monthly note, plus maintenance/taxes/insurace/etc. That's a lot of money that could go towards properties that produce income.

Like @Kevin Siedlecki said, she is probably losing money on this deal because it won't rent for what she owns it for. This will be even more of a dump for you since it'll be ALL outgoing cashflow and none coming in.

Just something to consider. Your money can go further with renting but you gain no equity. Just make sure you look at the opportunity cost. 

Not sure how other people feel but if you sent me a potential deal, and lived in my area I would be glad to see it. It may not be a deal for me, but I don't think anyone here would argue against getting opportunities. 

It would be different if you were blasting it to tons of people that AREN'T in your area. 

To be extra safe, you could simply message these people and let them know you're in their area and what you're doing, then ask if it's ok to send them deals. 

Good luck!

@Joshua Beall is exactly right

Find out what the ARV is, find out repair costs, analyze profit, make a decision. If the house is worth 45k as is, and you're getting it for 20k then pick and exit strategy and make a move.

as for the previous amount the house sold for, it was 10 years ago. It's about as close to useless information as you can find. Also, you can't be mad at a guy for making a (measly) profit, those are the rules we will by. 

No you shouldn't let anyone move in without cash in fist. Real cash (money order), no personal checks.

and NO ABOVE GROUND POOL!!!! I might even reject a tenant who was contemplating that. Those things cost like ~5-6k and he's just going to spend that in a place he rents? That type of money mismanagement would set alarms off in my head. Not to mention he's talking about paying for you to have a massive expense and liability. 

welcome @Renita Kerr! 

I'm right up the road from you in Fayetteville. You can learn a TON here, good luck!