All Forum Posts by: Anna Catron

@Jaysen Medhurst  I thought I put the estimated $80k appraisal in the title or description.  

I'm estimating the ARV to be near $150k because of the neighborhood and because besides the roof and HVAC, my spouse will be doing all of the work. The rehab budget is just materials. And again, it includes a lot that is estimated at $20-30k. The only comp we can find is in a worse neighborhood and in similar condition, appraising at $135.

Seems like a no brainer.  Is the property in an area that is increasing in value?  If you have your 6 mos of living expenses emergency fund and steady income, buy the property!!  Christmas is a great time to buy!  Wouldn't it be cool to say you started in 2019 instead of 2020?  

@Joel 

@Account Closed Way to go!  Sounds like you might feel like you lost money, but education is expensive!  You know the game is still worth it! Did you listen to Brandon Turner on the Money Podcast recently?  He was terrible in the beginning!  Keep going!

@Joshua Harris

I don't really understand your question. You are trying to come to ARV so that you know what to offer? If you are going to renovate it, is it not a distressed property?
I'd look at homes that are similar square footage and condition within a 5-10 mile radius.  Then I'd look at homes with a similar square footage that are in the condition you intend to end with, within the same 5-10 mile radius.  Then figure a rehab budget.  How do those 3 numbers correlate? What can you afford to offer considering the starting price, the rehab and the ARV?

Does that help? 

GOOD AFTERNOON!  We are buying an off market deal for approx $100k.  It is a duplex in terrible condition, but in an up and coming neighborhood.  The price also includes a spare lot (approx $20k value).  The owner has agreed to pay the $5k for the roof before getting it appraised. The HVAC company has also agreed to do the $10K job prior to appraisal if we give him the postdated checks.  Any other ideas?  

So far, sounds like either she comes down in price or we pay the difference between appraisal and price. We know the area well (so we know it's worth it) and don't want to feel like she's not getting a good deal. 

PRICE $102K

REHAB $20K

ARV $150K

Thanks in advance!

@Mike Reynolds

@Jim K.

@Javontai Shamburger

Strong work, Javontai! You got lots of supporters!  Starting at 25 is AMAZING!!  If you or Jim, comes to town, we'll all have lunch at my place!  I've bought Mike lunch once and he really is helpful!  He knows the whole wide world (at least in Nacogdoches) and has a lifetime of knowledge! 

Best of luck to all of us!!

Read Rich Dad, Poor Dad as well as Set For Life (you look young) and then buy a property!  You'll mess things up, but also make money and learn!  Go for it!

Hooray!  It does help!  We live in a very rural area, so I have no idea what our home (and 20 acres) would appraise for.  We bought it a year ago, but believe we bought with at least 30k in equity.  

I also found your article!  Well done! Thanks so much!

@Chris 

@Chris R.

Good morning!  This is perfect!

Could you tell me more about the financing? What does "traditional back" mean. And when you say credit line, you're referring to a HELOC?

I'll have more questions, I'm sure. 

Thanks so much!