All Forum Posts by: Bill Vaughan

I probably should have used the word guesstimate for the PM

We went by there the other day and will see again with PM and contractor. Bathrooms are ugly pink tile AND weird situation. Description says 2 baths actually its a vanity and commode on each side of tub so I would call it 1.5 baths

All I know is that we put a HUD house under contract, then learned we needed foundation repair, cancelled the contract. My agent at the time was told HUD earnest money is never refundable to INVESTORS, owner occupants can get refunds.

HUD does allow inspections as long as they are in your contract. However, HUD will NOT refund your earnest money unlike most contracts where you get your deposit back as long as you terminate inside of the inspection period.

Well Well Well, my property manager just called and he guesstimated rehab #3 at 30-40 grand when I was expecting 15.

Lesson, an inspection is really nice and I strongly suggest one for people starting out. BUT you also have to consider aesthetics. Sounds like we might have to gut 2 bathrooms and a kitchen.

I strongly suggest for all newbies getting alot of experience estimating costs not only considering what is needed structurally but also aesthetically.

Thats just my 2 cents( or 15-25 grand) depending on how you look at it

I have bought 4 homes in the DFW area the last few months (Bedford, Arlington, Grand Prairie, and Garland) and under 70% ARV but I am buying homes in the 50's to 60's.

I also know the name of a wholesaler if you have any interest(never done business with them, just look at the emails and pricing, they seem good)

How old are the units lead was banned in residential in 1978 and asbestos would probably be present for units from the 60's

We had "THE DEAL OF A LIFETIME" some 25 cap or so until we had to remediate asbestos then it became a 9 cap

thats the really nice thing about SFH you dont have to worry about commercial unit codes and laws.

IS it all bills paid or not? That makes a huge difference

I agree with Laura's remark about wholesaling. You won't tie up alot of cash and the experience should be good. You need tons of experience evaluating these properties and rehab costs.

These properties, are they all bills paid? Most commentors on BiggerPockets pref not to do all bills paid units.

Personally our property manager has more than paid for themselves, on insurance( I receive a 27% discount for using our PM) the initial redo(we got 3 initial bids ranging from 5-6 grand and the PM's was 2500)

I do agree with Laura's comments about wholesaling. You will gain experience and hopefully make some money

Another thing to consider is that there seems to be more possibility for appreciation in the nicer neighborhoods. We have been buying SFM homes in nice blue collar to middle class neighborhoods in DFW averaging 60 to 70 all in renting for 1.4 to 1.6% a month

Myself, I am not that into seller financing especially now.

Alot of forecasters believe higher inflation will be coming. The last place you would want to be is holding a long term fixed rate note. You could however do the note as an ARM

Also, you run the possibility of a cash flow problem if you tenant leaves. Then you are paying your mortgage and rehabbing the property at the same time.

On the other hand if you are willing to assume the risk it very well will have a higher payoff than selling outright