All Forum Posts by: David Roe

I'm not set on it at all, everyone invests differently with different classes of investments.  I was actually turned off to it until I talked to a local guy that has 15 of the same type duplex's in the same city.  they are all worth only 85k each and rents them out for 750 each (x2).  I'm posting to see if I was missing something and you all thought it would be worth getting.

Current lease is to a Air force member collecting $1,200 in BAH and renting this place at $750.   The Airbnb has great reviews with only 1 complaint he didn't have wifi, and one complaint about parking (a neighbor complained they parked in front of their house). 

At what price do see the property being worth it?  If you didn't count the Airbnb at all with rent at $750.00 it would still cash flow $50 a month with a $75,000 purchase price and 5% vacancy rate, $1000 year maintenance fund  

How do you all evaluate a property value based on Rental income?  Forget about this OP for a second.  Look at a Vacation rental in the Smokies Mountains aka Gatlinburg etc...  .50 acre lot, $250,000 cabin  property appraisal at $300,000 but has been a vacation rental for 4 years and makes $75,000 in revenue every year.  It's listed for sale for $500,000?  So none of you will buy it because the purchase price is 200,000 over the value of the property and the single home value will never reach 500,000 in our life span?   

Hello, 

I'm a newbie but have been studying and learning as much as I can and I came across a deal I haven't seen yet.   I would like everyone's opinions.  

It's in the city next to a historical part of town, lots of bars, pubs, micro brews, ect…  Average rent in the area is $718 or rentOmeter with $668 med

HOUSE; the property is a brick duplex; Historical income of combined duplex would be safe to assume Average of $1,400 of combined income.  Electric, water & trash is all paid by the long term renter.

Door 1; is Airbnb rental with past rental history of December 2018 - $1,384.93, January 2019 - $1,522.68, and February at +1,200 as of Feb 11,2018.  Has a single entry for two rental rooms with each room renting at 65-80 a night.  nice bathroom, no kitchen.  Has great Airbnb reviews

Door 2; is long-term rental at $750 per month (leased through 11/30/19) 2 bed room, washer dryer, kitchen is less than 10years old but not new, bathroom was updated. New flooring and paint. 

Facts: Owner listed property at an $85,000 was purchased in 2018 for 41,000 and rehabbed(some) mostly flooring paint and heating and air.  

NUMBERS;  $85,000 asking | $2,500 -$3,000 close | $8,500 down @10%  | rates close to 4.75% | That's $11,500 to close / invested | Vacancy @ 5% | Average Rent =$1,400.00 a month = $16,800.00 a year | Monthly cash flow would average $600 to $700 (all depending on Airbnb).

My only issues with the property is that location most houses are $30,000 to $40,000 or one that's been remodeled for $70,000.  There are foreclosures at $5,000 to $10,000 90% of them are 100% gut jobs with windows broken out and water damage.  I would say it's safe to say the gentleman selling the property bought it for $41,000 has $10=15,000 into the rehab, and $5,000 into the Airbnb furnishings and wants to sell it for $85,000.  But... it does cash flow very well.   

Question is; Would you buy it? 

Do you have a projected "Next" meeting planned?

Jaysen,

So the deal I did with my old property he brought a check at closing for me, well he paid the title company they cut me a check for 22,000. The 108,000 is still used up in my VA benefits but I am still eligible for $331,000 purchase on a VA loan if I wanted to use the rest of my benefits. they have some crazy math formula for defining eligible benefits and the math is different in every state. He purchased the house for

My question is for not just VA but for FHA and others, most loans are assumable. And even for the VA loan the person that assumed my loan was not a veteran and still was able to assume my loan. I was removed from all responsibility of the loan and it is no longer on my credit report. I am asking if any of you all have seen or done this with assuming a loan of a property from either a Bank owned foreclosure or pre foreclosed. Instead of buying a property and paying closing fees why not assume the loan from the bank and the possible better Rate than possible today of current rates and very little cost of Title work?

I'm new here, have zero deals... well I kinda have had two but not under the aspect of wanting to do this for income. I got divorced in 2014 gave my ex the house but if she sold it I got half the profit, if she kept it she had to re-fi it into her name. She couldn't re-fi so she decided to sell it, her realtor told her a few things that needed fixed and she couldn't afford to fix them. I on the other hand could and with my name still the only name on the loan for the house I told her she could move I would give her $1,500 and I would retake the property. The note had $108,800 left plus the $1,500 to her and I spent $2,800 on repairs on the house. The house is 10 minutes from Wright Patterson AFB, Dayton Ohio and is a 4 bed, 2 bath ranch, full basement, new roof, new Central heat and A/C, Detached 2.5 car garage, fenced back yard on .38acres. Appraisal on the property was about $135,000. I put it on the market for $140,000 finished price as I worked on doing the paint and repair work. I had someone bug me for two weeks to come look at it as is and I let him look at it. He made me an offer to stop working on it and buy it as is for $128,000. After some negotiating I offered him to Assume my VA loan of $108,800 @ 3.75% and cash out at closing to me for $22,000 this would give me the profits I wanted, and him the total price he wanted, at his $128,000 offer he would have had $7-8,000 in closing costs. He took the deal and we both benefited.

Now for my question, does anyone do this with Banks? I know it's an option to chase pre-foreclosers with owners failing to make ends meet. I feel like a bank who is about to Auction off a property for a lost of money would like the idea of maybe having someone assume the previous owners loan and rate. The person assuming the loan would only have about $800 worth of inspection and Title work for the transfer. No money down and no closing costs. Is anyone doing anything like this? It could then turn into a BRRR or flip. I feel like this would be a good way for someone to start with, I make great money, but I have been paying student loans off and not saving cash. Thoughts?