All Forum Posts by: Dylan Vargas

@Shedrick Boyd Welcome! Great job on the deal. Stay at it. Good luck and keep us posted.

@Sasha Josephs Welcome! Are you being required to abandon the well and septic? If not and there aren't any issues with the well and septic I would leave it alone. The property owner will not have a sewer or water bill saving monthly money.  Price per square foot to build I am seeing $225 per square foot as the lowest (doesn't mean they are available any time soon) and $300 plus is the norm if not more. Just a few prices I have seen. Good luck and keep us posted.

@Account Closed Welcome! Its all about the numbers my friend. Run the rental calculator here in the tools area and see how it looks for you. Numbers do not lie! Taxes, Insurance, Maintenance, payment, renovation costs if any etc. Then see how that looks.  Its free to run the report. Good luck and keep us posted. Remember the taxes may rise substantially with a new owner. 

@Shannon Tayllor I would put your offer in. The offer I would come up with is the fair market price minus, back taxes, HOA fees, plus the home repairs needed. Your agent should be able to ask about the mortgage to see how much that would entail. Then submit. You stated you want this for a primary residence so no need to lowball. Make a fair offer. What did your agent say to offer? If this is in California rarely things sit for 70 days so I would offer just enough to get the seller out of the deal and on their way and you may be getting some instant equity.

@Shannon Tayllor Welcome! If the property is listed I am assuming you have to use the selling agent. I would find a local buyers agent and submit your offer on the numbers you want. The offer usually has the aforementioned payoffs needed. If the recent sale comparable are $515k to $532k I have no clue why its listed at $575k unless prices have shot up that much which is entirely possible. I really would get a buyers agent on this unless I am reading your statement  wrong that the property is listed. Good luck and keep us posted!

@Harry M. Winters Welcome! %2 is very rare in California. It exists but tougher to find or create. The deal you are talking about isn't too bad if you get an owner occupy loan at say %3 interest or lower.. The cash flow will not be great but if you fix up then I would assume the value will rise giving you equity. Then when you move on the property will be paid down by tenants over time and you acquired this asset for 0 to 9k which is pretty darn good in CA. All depends on your situation and where the town is etc. Say payment is $1600 approx which includes principal, taxes and insurance. and can rent for even $2000 per month that is ok. You will have repairs etc but you stated you would improve the property so repairs should be minimal. If you are young enough this can be paid off over 30 years bu=y other people.Good luck and keep us posted.

@Mel Guarin Welcome! I dont know why you are avoiding FHA but there are so many programs available to new home buyers. From Zero to %3 down. FHA may be your best option unless you want to put more money down. You can always refinance down the road. With rates so low and not much money to come out of pocket I would take whatever is given. Good luck and keep us posted.

@Jc M. You are welcome. I was pointing out that there are many communities and opportunities from the East Bay all the way up to Vacaville. These are close by areas and can be BRRRR. I feel you need to do a few local things before venturing out of state. @Brian Sigmon is correct about lending Home. Doing a few local will help you understand when you invest out of state. You will learn what contractors see and issues that can happen with plumbing and whats behind the drywall you decided to open up and didn't need to. I always like the idea of being able to drive to a site and confirm something. Seeing is believing. Rent control does suck here  and that why I would look out of state after a few projects. SHF are exempt from some if not all things though on rent control. Please check on that as I dont remember exactly and could be wrong. Find an area along 80 and start researching it. BRRRR is very possible with your budget and homes sell very fast in that part of California.

@Jc M. Welcome! I think you should look at the East Bay and along 80 toward Vacaville. You have enough to BRRRR. This will not tie your capital up for a year unless you are doing all the work yourself on weekends. Buy and hold is different. With regard to BRRRR learn a local market, get your feet wet before venturing out is my advice.@Darius Ogloza has a great point. Good luck and keep us posted.

@Sean McCluskey You are welcome. Fix this patch and it will not affect your appraisal unless it looks worse than the picture is showing. I would save your money for a roof or other costly repairs if needed. Even save the 13k and paint the dang thing one color and maybe an accent wall.  Just my two cents.