All Forum Posts by: Asher Anthes

The neighborhood is great, very low crime, quiet established neighborhood.

So, I put in an offer yesterday for this house, there were about 4 other bids and I'm hoping I was the best one. I'll find out today if I won it. It's a short sale, but I'm pretty sure the bank has approved it already at this price.

The house needs about $10k - $15k or so as far as I know now to get it to resale. But, I'm planning on living in it and renting it out to friends for 2 years, and then selling it.

The house was built in 1998, all brick, 6 bed 5 bath, 3700 square feet, and it has an additional kitchen downstairs (could be converted into an apartment).

At my price, the price per square foot is $47. The comps average price per square foot are $80 (pulled 6 comps and threw out the highest and lowest). However, those comps are mostly 4 bedrooms 2.5 baths.

My main question is should I discount my assumed after repair instead of basing it strictly on a price per square foot. If I multiply 80 by 3700 I get $296,000, but I feel like $260-270 may be a little more realistic because people won't pay proportionally the same amount more for a 6/5 as a 4/2.5 per square foot.

Is this good logic? I still feel like its an awesome deal knocking off some of the ARV for this reason. Thoughts?

Robert Lapp I tired calling that number but it didn't go through. Is there another number I can call? Or should I just show up? Do I need to bring anything

Robert Lapp where is the meeting and what time? I'm very interested in getting involved

Yeah, I guess what I'm worried about is everyone says you don't usually get all your money back on particular renovations. Like, $4,000 in carpets isn't going to raise your price by $4,000.

Do you think, at my price point carpets is the way to go? I considered a nice laminate "fake" hardwood floor, but I've been told go with either carpets or real hardwood. Real hardwood is pretty much over budget though. And, then probably tile in the kitchen.

Okay, so I'm getting ready to buy another house and then do some quick rehab on my current house and sell it. I've budgeted 15-17k for repairs.

The carpets pretty much all need to be replaced (2000 sq feet or so. The kitchen isn't in great shape, and I manage a cabinet company so re-doing the kitchen will be cheap. The roof also is pretty old (does not leak) but probably needs to be replaced. Also, some minor landscaping.

My question is, should I do all of this before putting it on the market, or... should I just do the landscaping, minor paint touch ups, maybe re do the kitchen, and then offer an allowance towards flooring and roof once I get it under contract?

This way, the buyer could get exactly the floor they want, and I also cover myself a little by not putting a lot of money into it before I have a contract.

I owe $114,000, After repair value is about $190,000 right now.

What do you think?

Yeah, if the purchase price ends up being around $170,000 I'm probably going to have to only put 10% down. But with a PMI rate of .65% that's essentially the same thing as paying about 5.8% per year interest on that additional $17,000 (the other 10% I would have put down to get it to 20%)... which isn't that bad.

So... most likely when I sell my first house I will pay off higher rate student loans (6.5%), and probably re invest the other profits back into real estate that will make me higher ROI than that PMI is charging me.

Also... if I fix up the second property, and also get market appriciation so that my loan is less that 80% LTV, can't I get an appraisal and then get out of PMI that was as well?

Yeah, I'm pretty much positive that I'm going to buy the new one before I sell this one. My first choice would be if I can get conventional financing on the next one. I'm not sure if I'm going to be able to put 20% down though. Any idea what PMI rates are now? I feel like that's going to eat up alot of my monthly cash flow... which is why I really wanted to put 20% down.

Thanks

Yeah, I want to get as much cash out as I can with the refi to either put towards more property or pay off student loans. What is the 203b escrow? I haven't heard of that?

Can I do a 203k or 203b with less than 20% down?

And, yes it seems kind of conterproductive to refi and then sell immediatly, but I feel like the tax free profit from the sale will give be a better jump start into buying more properties as opposed to waiting years and years to get that same profit from rent cash flow. Maybe, I'm impatient, but that's just my thinking right now!

Okay, here's my situation:

I'm 25 years old, Bought a house about 2 years ago for $105,000, FHA 203k loan, did some rehab to it. Living in it for the last 2 years, renting the extra rooms out to friends, making positive cash flow on it. In the current market, after I put about $15,000 more into it, it should sell for $190,000 based on comps right now.

I'm ready to buy my next one, move (tennants with me), and sell the first one. I'm pretty sure, I'm going to have to refinance this one with a conventional mortgage, so that I can do another FHA 203k on my next house.

I can't get conventional financing on a lot of the houses I'm interested in, because they need repairs, and of course I can only have one FHA loan at a time.

So, after I buy the next one and move, put 15k into the first one, sell it at hopefully $190 and then put that tax free profit into either a cheaper all cash flip property, or buy another house to rent with a mortgage.

My current liquid assets is at about $40,000.. so putting 20% down on a 120-150k house will make money tight until I sell the first house.

What do you guys think?