All Forum Posts by: Michael Baradell

I think @Guy Gimenez hit the nail on the head!! No need to worry about all of these "out clauses" if it's a true deal. If you are uneasy about it, move on. Trust your gut!!

Hey guys,

The financing would be 30year amortization @6%. Zero Down. The tenants will pay all utilities. It is in a high demand area due to schools and closeness to water. @Nathan Emmert 1.2% for my area is actually pretty good. I would normally stay away from Flood zones. My struggle in analyzing this deal is because it is seller financing and zero down. How much weight does that carry, if any? 

Hey guys,

I have an opportunity to purchase my first duplex. I would like to see what the pros think of the deal.

Breakdown:

Purchase price $150K. Seller Financing Monthly payment around $1,350

Rental $900­ and $950 month

Average Electric $84.00­$109.00

Gas Available/Optional

Sewer & Garbage $$80.00

Taxes

2010 $1465.00

2011 $1473.00

2012 $1470.00

Tax assessed value $170,081.00

Insurance

Home Owners $1800.00

Flood Insurance $1900.00

Thanks everyone!! Great info. To answer a few questions, this specific area, although it is in high demand due to schools, I would not bank on appreciation. The current owners are renting out the property now and are at an age where they want to get rid of it. They purchased it in 2006 when the market was through the roof in this area due to Hurricane Katrina. It is on high ground with no chance of flooding, which put a premium on this area after the storm. The originally owner purchased the property in 2005 ( new construction) one month before the hurricane for $149k and ended up selling to the current owners 9 months later for $189k. Current values puts the home back around the $150k range. Some comps are in the high $160s and low $170s but have features that warrant higher price, I.e garage, and more Square footage. The sellers owe around the $130k range but are not hard pressed to sell. My goal is to acquire 10 properties in the next three years but I would feel much more comfortable with higher cash flow. I am on the fence because I know buying on certain terms offers its own value as well. Determining that value is my struggle.

Hey BP!!

The question that I have is, how should I analyze a deal that is slightly below market value, but I can get the property via seller financing with very little down? Here is a quick look at the numbers:

$1,100 for all carrying costs (PITI)

$1200 - $1250 monthly rent. 

Sales price will be slightly below market value and I would only need to put $2k down. Home is in great condition ( less than 10 years old) and in high demand area. 

Although this deal does not offer much monthly cash flow, if any after capex and other costs factored in, due to the fact I can acquire on terms, is this a deal to pursue??

@Hannah Robie thanks. My area does offer online services that gives you access to all files. I'm trying to learn exactly what to search for. As you mentioned, evictions and probates are two examples of types of things I will search for. Im simply wanting a run down of all of the different types of searches that could benefit an investor at the clerk of courts.

@Jeremy Tillotson thanks but Im actually asking what to specifically search for. I know how and where my local clerk of courts is located. With so much information available, it could be a daunting task searching their files. I'm simply trying to get an idea of exactly WHAT to search for. For example; tax liens, probated etc..

Hey Guys,

Can anyone offer advice on obtaining records/information from the Clerk of Courts? Where to start? What to search for? I'm trying to have a game plan in place so when I do start my research, i'm actually being efficient with my time. I am able to purchase a monthly subscription so I can access all records online, but I would rather physically go there to familiarize my self with the available records first. 

@Wayne Brooks thanks. Would you mind elaborating on why you would not "go there"? 

Can you renegotiate the sales price? If so, simply reduce the price to cover the cost of selling ( buyers agent commission ), and then draw up a listing agreement that you are to receive anything above the asking price as your fee/commission. Now, you will obviously need the funds to go through your broker, but this will increase your buyers pool substantially. How do you feel about this strategy @Bill Gulley