All Forum Posts by: Leroy Williams

Jon,

Just curious; how did you determine the max price?

Will

The rent is $875 mo

I plan on buying and holding, possibly a little cashflow, and looking to sell when the market returns.

I added some photos of the house to my gallery called Deals. See if it is worth it.

After going by the property today, I was surprised that it looked different once the snow had melted away. The neighborhood is not that bad at all. It is an older neighborhood. All the houses were built in the 1960s, but are in pretty decent shape. I took pictures of the exterior and interior of the house and the neighborhood. The neighborhood is pretty quiet. I took about 6 addresses down on the street and found out 2/3 of them were last sold in 2001 ranging from $60K to $80K. One sold for $158K in 2008. The house is in good shape on the inside. I can tell some work has been done. It has 2.5 baths and 3 bedrooms. One bedroom can be easily made into two. Nice refinished hard woods and fireplace, a built in bar. The major work would be on the exterior (a little landscaping, updated windows & shutters, porch doors, new mailbox etc) I would replace all the bedroom doors also, and new tile. The carpet looks pretty new. After crunching the #, this is what I plan to do.

Asking price $85K(neg)
ARV ($80K)
rehab $ ($15-$20K)
other fees & closing ($6000)
Offer ($40K)
If she rejects (I will offer $45K)
If she rejects (maybe a poss sub 2/depending on equity & loan structure)
If she rejects (let her know my offer will be there if she changes her mind)
Walk away.

I just found out through some research that she purchased the house in 2007 for $42,000. I am going over to look at the house on the inside to see how much rehab work needs to be done and if any apparent work has been done since the purchase. I am also going to take pictures.

I ran across a property that was vacant w/a phone # on the front porch. I called the # and spoke with the owner. She was very willing to talk with me. She even gave me the combination to the door to look around. I know it will need some rehab work, how much not sure until I go look around. She never lived in the house. She originally bought the house to rehab, but ran out of money and time. She lives out of town and sounds eager to get off the property. She wants $85000 for the home, but seemed unsure when she gave me the price. She says it is negotiable. I can tell by 1st glance it is not a $85,000 house just from the neighborhood alone. It is not the projects, but neighborhood is obviously a low income. I tried to run comps but no house have sold within a 2 mile radius according to Eppraisel. Eppraiel says it worth $113,000. I know that's not accurate. The closet house they had that was sold was about 8 miles away. Houses around the area look like they run no higher than $60000. I can't afford for an appraiser to look at it for me if I am not sure if I am going to buy it or not. This is when it pays to have connections. I am not sure how much equity she has in the house or what she paid for it in (tax records say had 4 purchase dates, but only gave the price for 2004/$52500 order to make a reasonable offer for me. I will go look inside today to get a rough estimate of what it will cost to rehab. Can anyone offer any advice? What should I do next?

Leroy

William, Once again thanks for crucial information. I will use this information for future short sale deals.

Taz,

Information Greatly Appreciated. I figured that about the Buy & Hold Market. I hope I have success.

Leroy

I see.