All Forum Posts by: Darrin Carey

This is the place to get to know other local investors and landlords in a casual environment. We're a friendly bunch of people; come hang out with us and talk Real Estate.

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@Ricardo Murph II If you do the 63k offer, write it up so they know it is subject to the contractors bid for repairs and updates. It'll be easier to go back to them later to lower the price if needed.

Absolutely validate your ARV. In the area around Miami Valley Golf Club, i see one sale at $145k, and four from 100-125k in the last 6 months

There are a couple good title companies that can work with you once you get to that stage.

Thanks for clarifying @Brent Coombs. I should have worded that reference better.

@Andrey Y. for reference: I pay $225 per square for a roof including all materials and labor, tear off, disposal, and warranty. (decking over 2 sheets is extra if needed) A typical 1200sf house is 16 square. $3600. I do get a volume discount, so call it $4000. The work I do to have a roof put on when I buy a house is one phone call and writing a check.

@All. I'm not implying EVERY $30k house is a great deal. Many suck. However, you CAN get good deals at low prices that will cashflow if you do them right. Sometime, I'll do a blog post on how to make it work. In the meantime, I'm going to close my $20k deal with a smile tomorrow.

Unsecured lines and credit cards may help cover it, and other sources can help. Just make sure you don't overextend yourself, especially if you plan on keeping the property as a rental. As you've found 203K has strings and most want you to be an owner occupant. It really sounds like you need a hard money loan that targets investors. Several advertise here on BP. expect to pay about 4 points and 12%. You will need some money into the deal, so zero down is not an option.

As you've found, traditional lending is not very accommodating for properties that are not deemed habitable, or need extensive repair.

I see this thread is still going ... page one was a while ago ... @Brice Hall Based on your initial post and the multitude of comments on this thread, I have come to the following conclusions:

1. YOU cannot make money on 30K houses. Whether that is a function your market or skill is unknown.
2. You're trying to make yourself feel better with your blanket declaration that NOBODY can make money that way. My guess is that you tried, and it didn't work out very well for you.
3. You're jealous of those who can make them profitable. (or you are indeed @Ben Leybovich in disguise)
4. You're quick to make assumptions about how other people run their businesses, and whether they are profitable. (i.e. "I've heard from a lot of people who take jobs as property managers and handyman/woman"). My Property Manager takes good care of me and my properties. Tell me, how did your "hands off" experience work for you?
5. Several people have given good examples of deals in that price range supporting success, all of which you have dismissed out of hand. (Please refer to #2 and #3 above) (@Dawn Anastasi, @Joshua Martin, @Darren Budahn, @Stan Sugarman)
6. As other people have already called out, you didn't really want an answer - you just wanted people to support your viewpoint. Thus multiple posts, same topic.
7. You are quick to support anyone who agrees with your viewpoint. (@Jim C.)
8. See #1 through 3 above.

Apparently - despite a growing portfolio of solidly performing, well-maintained $30K properties - I must be hemorrhaging money. In addition to the 10-year long example  (@Andrey Y.) mentioned in  way back on page one, three years ago I bought a $10K Section 8 house that was rented for $600/mo. Repairs needed at the time: battery for the smoke detector. Obviously, NOBODY could ever do that and make any money. Oh yeah ... I did have to make a couple repairs last year - I guess that $200 expense just killed any potential profit for me, ever.

Also apparent: the four I've bought recently in B neighborhoods for right around 30K will probably be my undoing. I only get $700 per month rent. 

<Gasp!> I have another one under contract for $15K that needs 4k in repairs (half of which involves a new central A/C unit), which will easily rent for $700. It's in a C+ neighborhood. I can't make money right? In your infinite wisdom, do you think I should cancel the contract? 

How about this? Let's change viewpoints slightly: why don't you take just a moment and let the rest of us in on your top secret investment portfolio ... and by all means, please do be specific. We're all dying to know what you're doing to be so successful.

It sounds like you have the all the pieces to bring the deal together. Other than you being remote, this is a simple deal.

I always encourage wholesalers to go through the property. Second best is boots on the ground.

20k on that size house for repairs is likely low, but you never know.

You can close remotely, and the taxes can be handled at closing. The real work is validating the ARV and repairs.

What do you need help with ?

We do it all day long in and around Dayton. Mostly D+ to C neighborhoods. You can get into war zones for less, but its not worth the hassle to me. 

Very similar numbers to @Dawn Anastasia above.

To give an example with history, bought fully rehabbed in 2007 for 31000. 700 rent, still the same tenant. About 1000 maintenance in 10 years.

@Jim Mcmillen All my tenants receive the water bill and pay it directly. The City of Dayton sends me a copy of the Late Notices and Shut Off notices if any tenant doesn't pay on time. Check with your local water dept and see if they can do the same.

Gas and Electric stay with the tenant. They aren't Government monopolies.

For the water bill, it's whatever you put in your lease. I have all my SFH tenants pay the water bill.

Keep in mind, in Ohio, the water bill stays with the property. If the tenant skips without paying it, the owner gets to pay the water bill.