All Forum Posts by: Dave Largent

Thank you for your responses.  The work would be a mix of my labor and pros.  The A/C, furnace, water heater, pressed board flooring (whole house was this material), and possibly roof were needing replacement.  I spoke with the homeowner and shortly after with the bank.  The homeowner was ready to be on her way and had little interest in the home.  She also had no equity.  I was hoping to find something about this home that made it a winner, but I didn't see it at more than $120k.  Even that, as Doug Woodville suggested, may have been too much.

Thank you for the information.  In my case, I was notified by a family member that the home was going into foreclosure before it was made public.  I'd hoped that would.give me an edge in viewing and negotiating.  However, the bank wouldn't discuss it.  I was told to wait until the foreclosure notice was made.  Was there more I could have done to take charge and benefit from being made aware early of the foreclosure?

I am new at REI. This was my first view of a potential investment property. I followed through with the due diligence I am aware of. The home became a short sale at $155k as is with limited time to view. ARV is $185k. I viewed the house. Repair estimates on the high end were $30k. It is possible to have repairs as low as $20k if an unknown plumbing and apparant multiple roof leak issues were easily overcome. I felt good about going in at $120k. It sold to a cash offer at $157k. The offer came through a large REI company. If you are reading this, would you provide insight into anything I may be thinking wrongly or need to consider. $157k for the home seems a lot for this property. My guess is it becomes a rental in order to profit over the long haul. Best Regards, Dave

Dear Forum Reader,

I learned about a home being foreclosed on soon.  It will be listed by the bank late this month.  My interest in the home at this time is for a potential wholesale deal.  If I get a verbal from the owner on how much is owed and any liens against the home, how can I confirm these things?

I have much more confidence and numbers to work with that show that selling is the best option toward the goal.

Thank you for your recommendation.  I don't have a water well.  I could tie into the city sewage for an unknown amount ($5k I believe).

I want to become and grow as a buy-and-hold real estate investor until I have replaced my current income.  The path I like is buy-and-hold, however, I expect to pursue flips on occasion to boost cash for buying rentals.

In May this year my current home will no longer be my primary residence.  I am not purchasing another home but will take up residence with my soon-to-be spouse.  I can sell or rent my home.  Selling has the upside of no capital gains tax as I've been in the home for more than two years.  Selling would give some cash to buy possibly two rentals or a multi-family.  If I lay out some data, can you help me make a decision toward my long-term goal of replacing my income through buy-and-hold?

• Single family ranch, 3/4 acre lot, septic, 8 year old 3 tab shingle roof
• Purchased: 2006 for $140k
• Owe: $100k
• Mortgage: $543
• Taxes and Insurance: $205
• Expected rent: $1200-$1350
• Tenant would cover utilities
• There are no association fees
• I will have a property manager
• I am guessing 3-5 years before predictable large capital expenses arise.  The first being air conditioning unit.
• Comparable area sales indicate a sale price in this range: $165-$185k

Thank you,

Dave