All Forum Posts by: William Allen

I hope so, long way to go yet and lots of variables. Looking forward to jumping in though!

Chad,

This house is in southern MD, don't get back to Pensacola for another 6 months or so. The ARV is $240k and the purchase price was $120k. Estimated repair costs of $40k but may add a little bit more to the SOW since we got it lower than expected. I will write a post about it when we get going.

I wanted to post my experience so far with homesearch.com for any of those who are thinking of buying through them in the future. I won't go into the bidding that has been brought up in previous threads but if anyone has questions ask away.

I intially submitted an offer to the listing agent while the foreclosed house was attached to the auction site to try and get them to take my offer and take it off the auction block (it was still listed on the MLS while it was on the auction site). They said no and they were letting it go to auction. I watched the first auction and didn't participate, house didn't meet the reserve. The next day it was put back on the auction site with an auction date 2 weeks away. I again submitted an offer to try to get them to pull it off the block, no luck. I bid on the second auction and wasn't the high bidder as it went above my max bid, again didn't meet reserve. The next day it was back on the auction website with an auction date set 2 weeks away. I bid again on the third auction and was the high bidder, $25k lower than the last auction and didn't meet the reserve.

That afternoon I got a call from a homesearch.com representative asking what my highest price was. I expected this call due to the research I had done and gave them my answer, a few thousand above what the auction ended at but almost $20k less than my original written offer. 2 days later I had a contract in my email, signed it and a day later it was signed by the asset manager at the bank.

We are now under contract and should be closing in about a week. I will post an update when it is all said and done for anyone that is interested in following.

This will be our first flip so we are excited and nervous at the same time. The margin is good and I hope it stays that way. This also gives us multiple exit strategies in case the sale or renovation doesn't go as planned.

Anyone have any recommendations for top agents in the Frederick, MD area.  I have a family member who is buying a house in the next few months and I want to make sure she has someone who really knows the area.  Thanks.

@Jody Levins , welcome to the site.  I also invest in Pensacola and have been for a few years.  Let me know if you have questions on the area.  We will be back down there early next year to look for some more properties.  

Tim, I think most answers will be depends on the numbers.  Plug them in and see what gets spit out, does the rental rate and DOM in the area justify fixing and renting?  How long do houses in the area sit on the market that are for sale at those prices?  I don't have a great answer for you but hopefully someone with more experience in the flipping world will come along this weekend and help you out with some more details.  At $20-30k I certainly think it could justify a rehab and flip or rent.  I look forward to getting down there next year to learn the market more.  Then I will have a better answer for you.  

@Dan Walters  Thanks for the response, some great points and answered my questions.  The current owner is renting the house out and no longer want to be absentee landlords.  However, that doesn't mean they don't still have a HOE on the house.  I will ask now, great point and I just assumed there wasn't one.  The tax bill will come to me correct? So I should be able to deduct the property taxes on my income taxes but not the mortgage interest.  Is that right or since it all comes out of escrow she gets it?  

Any Sub2 pros out there?

May help if you put Dallas Fort Worth in your title or the text of your post.  A lot of people have keyword alerts that sends them emails when certain words are used in posts.  Good luck and hopefully this will pop up on some of the people in your areas email to help you out.  Welcome to the site.