All Forum Posts by: Andy Bailey
Andy Bailey has started 7 posts and replied 44 times.
I'm going through the same thing. The REO bank is full of people who do not know what they're doing. It just takes a while.
Post: Murder/Attempted Suicide in Tenant Unit
- Investor
- Eugene, OR
- Posts 46
- Votes 35
I'm an insurance adjuster for a major insurer and I've done a couple of crime scene clean ups and 20k seems really high! DM me and I'll give you my number so we can chat to see if you are getting ripped off.
Post: So what's holding you back?
- Investor
- Eugene, OR
- Posts 46
- Votes 35
Nothing, I put in my first offer over the weekend. No I got to do about 30 more before I get my first deal.
Post: First BRRRR - are my calculation correct?
- Investor
- Eugene, OR
- Posts 46
- Votes 35
I would suggest getting an agent or an appraiser to tell you much the property is worth, not Zillow.
Post: Tips for hiring a VA?
- Investor
- Eugene, OR
- Posts 46
- Votes 35
The 4-hour work week by Tim Ferris has some great info.
Post: How do you incorporate "Never Split the Difference" into offers?
- Investor
- Eugene, OR
- Posts 46
- Votes 35
The title says it all. I'm on my second read of Chris Voss' book. How do you incorporate the info learned? It seems like if you offer 65% of your MAO people won't take you seriously and it would just shut down the whole conversation.
Post: How Do You Manage Your Money?
- Investor
- Eugene, OR
- Posts 46
- Votes 35
@Steve Vaughan Steve has it right. Start off with Dave Ramsey and start a budget and get through baby step 4. That will give you a 3 to 6 month emergency fund. After that you live on nothing and save up as much money as you can.
House hack a fourplex would be a good idea as well.
Post: Deal in the works, rip it apart.
- Investor
- Eugene, OR
- Posts 46
- Votes 35
@Joe Villeneuve Thank you all for the insights I appreciate it! On the computer the formatting look great but now on my phone it looks all messed up.
Post: Deal in the works, rip it apart.
- Investor
- Eugene, OR
- Posts 46
- Votes 35
Background: I am an insurance adjuster for homes and deal with repairs, making estimates, and contractors all day. Both over the phone and in person.
Deal: My business partner who we will call TP (no not toilet paper), found the deal by conversation with his father in law. His FIL has a townhome with an HOA @ $95 a month. Comps in the area sold within a few days to 2 weeks all for $170k. The deal would be 140k FSBO with no agents (my first concern. I've only purchased primary residences) so no commissions to pay. The rent would be about 1300-1400. 2005 home and it was well maintained. Just saw updated photos today.
TPs sister-in-law has special needs and wants to stay in the home (my big concerns). I know family and business do not mix. TP has been very upfront that we are in the business to make money and if that does not work as a rental for any reason we would sell it and fast.
Rental numbers
| Income: | $1,375.00 | $16,500.00 |
| Mortgage Pay: | $601.24 | $7,214.88 |
| Vacancy (5%): | $68.75 | $825.00 |
| Management Fee (8%): | $104.50 | $1,254.00 |
| Property Tax: | $97.92 | $1,175.00 |
| Total Insurance: | $66.67 | $800.00 |
| HOA Fee: | $95.00 | $1,140.00 |
| Maintenance Cost: | $100.00 | $1,200.00 |
| Cash Flow: | $240.93 | $2,891.12 |
| Net Operating Income (NOI): | $842.17 | $10,106.00 |
If we sold it after a year:
| Return (IRR): | 73.02% per year |
| Total Profit when Sold: | $22,635.53 |
| Cash on Cash Return: | 73.02% |
| Purchase Capitalization Rate: | 7.22% |
| Total Rental Income: | $14,421.00 |
| Total Mortgage Payments: | $7,214.88 |
| Total Expenses: | $4,315.00 |
| Total Net Operating Income: | $10,106.00 |
Assumptions:
140k with 20% down
3k closing costs.
Rip it apart! Or would you do it?
Post: Flip got broken into- Insurance doesn't cover theft- suggestions?
- Investor
- Eugene, OR
- Posts 46
- Votes 35
Hey Lance, we met at the local reia meeting last month or so. Sorry to hear about your troubles. Evan is correct. I am an adjuster for a major Insurance Company and we have construction policies where this sort of thing would be covered. I think you have my card. Give me a call if you want to discuss it.
Also do you know Russ Peterson?
Originally posted by @Evan Tucker:
Hi Lance! So sorry to hear about your situation! Were the tools covered by insurance? The adjuster is correct, most companies do not cover vacant dwellings due to it's high risk. However, most insurance companies can broker through different companies and write temporary policies for properties that are being rehabbed. The cost may be a little bit more expensive, but you'll be paying for peace of mind. I work for Allstate Insurance in Medford and I would be more than happy to help you find something more suitable! Feel free to reach out to me whenever!