All Forum Posts by: Bob Okenwa

@A.L. DeFalco

Thanks for the update. Being in upstate NY, you're against the clock here. You'll see snow in 3 months and pretty much all exterior work will grind to a halt so you may have to begin there. 

Based on what I've seen, it snows into April there so you'll be up against mother nature for about 6 months and this looks like it'll be a 4-6 month project.

If you could get the price super low, it may be a better option to wholesale/wholetail it and move on to something less extensive unless you have the experience, crew, and monetary backing to pull off such a project.

Without knowing exactly where you're at, the numbers will vary. My rehabs in Ohio cost considerably less than anything I've done in Phoenix.

Judging by the photos and you being out of state and possibly not having the right connections, you're probably gonna spend more on the rehab than the cost of acquisition. 3 kitchens, 5 bathrooms, 3 furnaces, and 3 water heaters will cost a ton and I'm not even sure what the square footage is or the age of the property.

Plumbing will probably need to be touched up, electrical and HVAC as well. I can throw out a random number but it wouldn't do any justice and I wouldn't consider it very accurate since I've not walked the property.

Outside of the wood floors, there doesn't appear to be anything salvageable here. This is a six-figure full-gut rehab that'll last into the winter. This place looks like somewhere that gets cold and/or snowy winters so be aware of that as well.

Call a professional cleaner ASAP. Sellers are stubborn and think they can list at any price and tend to ignore what the market is saying.

Get market data by running comps and if you're really desperate, get an appraisal.

Where in the midwest? Reaching out to agents and investors where you're trying to find such properties will probably get you going in the right direction.

@Megan Hubbard

You can get a Fannie Mae/Freddie Mac 30 year fixed investor loan, but the down payment is going to be at least 15% down. Rates will vary by lender.

https://singlefamily.fanniemae...

Yeah. Using your savings as a down payment to buy something that may appreciate more in the future and attract higher-quality tenants.

I wouldn't buy anything with the speculation it'll appreciate, but there should be something better available than a 2/2 in Sunnyslope. Might have to look to the outskirts like Maricopa or Buckeye or Surprise for better pricing. But the homes will be newer and require a lot less maintenance than an unimproved late 70s north Phoenix condo.

I'm with @Joe Villeneuve. Spending all that cash and to have it tied into one deal presents a poor ROI.

That property is in the Sunnyslope area and I'd rather take that 160k and buy a single family in North Peoria, Gilbert or Chandler, Scottsdale, or Tempe. Much better area with much better tenants and a higher median income.

Get something under contract and then get a contractor. Or pay a contractor to walk your property and give you a bid beforehand. 

Any contractor worth his/her salt won't waste their time with someone who has never purchased a property and doesn't have anything under contract unless you're willing to pay them for their time.

You'd need 10-15 of those 50k Cleveland and Detroit homes to match 1 Bay Area home in terms of dollar amount made on the sale based on your example. 

Picking up 1 house is a lot easier than getting to 15. If you cash out 15 houses individually, that's a lot of commissions and closing costs as well. It's not always easy to sell an entire portfolio at once.

@Mario Morales Safah

Get your license, join a brokerage, then join a team at that brokerage. Your team leader will mentor you and you can use your team as leverage to learn and earn.