All Forum Posts by: Bryan H.

Well, made our offer today. Their response? They accepted an offer yesterday. DAMN. We are in a back-up position, so I guess we will wait and see.

Decided to offer less. We are starting at $58,888. And will probably jump on any counter offer. haha.

My guess is YES, but why don't you ask him?

A couple of things about this house. It does need work. There are missing windows & exterior doors, house looks like it was painted by a 4 year old. Plus for the first week or so, there were no interior photos. I know that not having photos turns people away from looking at the home. The photos it does have don't include kitchen or bathrooms. I assumed they were gutted or in horrible condition. They weren't. Bathrooms are dated but a good cleaning and they make a nice rental. Kitchen is spacious, lots of cabinets (they do need to be painted).

Another thing might be that the listing agent is non-responsive to calls/emails. It could fall into that 'hidden listing" that Bryan L. referred to.

Wish me luck, I'm going in.

That is exactly why I was thinking of just offering full price and getting the house. $5000 = $20/month. And I do plan on holding long term.

Get some wrenches to do plumbing work. Get a circular saw, and reciprocating saw & drill. A set like a Ryobi combo from HD is great for DIY. Get a electric tool that tests if outlet is hot. Get some needle nose pliers. Flash light that you can wear on your head. Small pry-bar.

I'm going over things I used on some of my DIY renos that I found to be very helpful

So I'm getting ready to make an offer on a REO. Listed at $65k. It needs about $10k in repairs, ARV is $100k. I am looking at a rehab/mortgage combo at around 5% and 20% down.

Will rent for $1000-$1100

P&I - $321
Taxes - $132
Ins - $50
PM Fees - $85
20% Reserves - $200

Cash flow = $212
Annual = $2547
$15k down
CCR = 16.98%

My goal is >$200/month & >15% ROI

It's been on the market for 2 weeks. Do you risk making lower offer and having someone else show up with offers? Or since the numbers work, just offer full asking price and get it done?

Like everyone else, I always want a deal. Never give them full ask, gotta negotiate. But should I ?

Your first calc is the right one. Since you are using leverage, you get greater returns on investment.

The tough thing is finding a bank to make this happen. There aren't many banks that work with such little amounts. Plus most want more down payment for investment property. A 203k is only for owner occupied properties. But you can get a Fannie Mae product called the Home Style loan, similar to 203k but OK for investors.

The numbers on my first rental property look much like yours. Purchase $20k, Rehab $10k, Rent $925. =)

Good luck

At my local REIA meeting yesterday, a rep from http://www.trustetc.com/ came in. Seemed like a good program. Got me interested in possibly doing it.

Talk to others in your area, it's definitely market driven. My homes in MI 1 bath is fine. In NC, most have 2 full baths.