All Forum Posts by: David O

If what you say is true, having seen it (structurally sound and ARV price). I wouldn't worry about any of what you are saying. All three issues are overblown by lawyers. If it was so dangerous everyone you know would be dead. The only time I'd worry about asbestos is if you have an old octopus furnace or if it's on your pipes, that's it. As I don't want to remove those. Asbestos flooring? Just go over it. Lead is nothing if you take proper precautions. Ie - Don't scrap without lead masks and wear a tyvek suit. Once it is painted it is fine. Mold is 95% of the time No issue. Wear proper mask/suit and get rid of it.

Looks like a great house - I'd go for it if the ARV is right and you can get it for 40-50k.

Or just try another lender and be up front with them. They may be hesitate with the whole flipping thing though as they are in second lien position (assuming you have a first mortgage) and they will see the flipping as risky. At the end of the day though, if anything happens, they will have the house as collateral so I don't see an issue with it. You'd think a larger lender like WF would be willing to "take the risk".

I assume this HELOC is on your primary residence? If so, say you want funds to put a pool in and make improvements on your property.

I'd be careful with the auction. I've been in the last three auctions. The last couple years there have been big players buying up all the good houses. Last year most houses were severely overpaid on as well. These are definitely risky as you aren't supposed to look inside and sometimes have no real idea of what is really going on. I've seen houses get bought for 30K/40K (outside of Detroit proper) and then sold later for half that price as the person who bought it had no clue what they were getting into. Most of these houses are the worst of the worst, so prepare for that.

If you are out of state don't even try it. You need to physically go to each house you are interested in and look it over as best as you can. I've looked at hundreds of auction houses over the last few years and I've only gotten 3 properties (two of which I later got rid of for a small ~500 loss). I've probably spent 100 hours on researching and visiting the houses over the last three years.

One of the houses I bought I literally had to redo the entire floor on one side of the house. Joists and subfloor. There was major water damage. Even with that, I still made a great profit off of it.

With that being said, I still love the auction and you can find great deals. Just make sure you do your due diligence and realize that some of these houses have major issues that aren't exactly noticeable at first.

A month for a cash purchase? That's horrible. It should not take longer than a week to pull the abstract and verify title is good. If there's an issue then it would take longer, but I'd say 90% should close in a week or two.

I would tell them you need this ASAP. Unless there's a title issue this should be quick.

Looking to do my first cash purchase from a wholesaler (usually buy off the tax auction). Does anyone have an attorney they recommend in the SE Michigan area? The closer to Detroit the better. Basically looking for someone to write up the contract and guide me through the process.

Taylor. Yeah I definitely sense that prices are going up a bit. There is a lot of new commercial construction going on in the area around this house so that's good.

Awesome thanks. PM sent.

Hold. Depends on the house/deal. The last house I bought downriver for 14.5k and put 6k into it. Water damage so I needed all new floors (joists and all in one room) in most rooms, put support in the crawl, new driveway, new kitchen, plumbing, a couple windows, took a couple trees out, etc. Appraised for 35k. Currently rents @ 600.

Looking for something along these lines. I do all the work myself and have a contractor uncle who helps for little cash so my rehab costs are essentially materials and my time only.

Looking for houses under $25K in southeastern michigan. Any house considered. Experienced with houses needing extensive rehab and I prefer that since they are cheaper. No properties in Detroit or Inkster. I prefer the downriver area. Cash deals. Please PM me here if you have anything available or feel free to add me to a cash buyer list if you are a wholesaler.