All Forum Posts by: Account Closed

@Thomas S. Yes it could rent for $1300/mo and grow over the next few years easily. 

I just heard back from my realtor and they don't want to go below $60k. They were offered $45k and $20k unseen and turned them down. At least now I know. On to the next one...

Thanks everyone for the advice.

@Andrew Johnson Thank you for the insight. I know real worth versus seller's worth can be a very large spread. I guess I feel it doesn't hurt to ask. I just don't want to waste everyone's time if I shouldn't even try given the stats.

@Jody Newman I totally agree. I am not looking to put someone out. And I hope it won't come to that if I'm ever in that position. But it doesn't hurt to ask and they can very easily laugh in my face at such a low offer if I decide to put one in. Thank you.

@Aaron K. I would definitely check the reno numbers with my own contractor first. That may be why it's still sitting. And you're right, motivated might not be enough for half.

@Jody Newman I think I'm pretty conservative on my numbers using the BP calculators. And this would be a rental and not just a flip. I think the reno budget is probably the biggest variable.

@Paul Choi I wondered too if investors looked early with no luck but the seller's situation has changed. I haven't checked for reports on file. Where would I look for those? Should the selling agent have them?

So I'm very new to the game. I haven't completed a deal yet. I'm analyzing constantly and think I found a decent deal. The numbers can work with the use of private money (family friend). My hesitation is "Why hasn't another investor scooped up this property yet?" It's been on MLS 110 days. It's a small row home that needs about $50k in work (listing agent's number, I'd definitely confirm). And my reno would be a bit less because we'd be doing some ourselves. Listed at $80k but my agent says the seller is HIGHLY motivated (older, in the hospital). I want to offer $45k if the $50k reno is accurate. ARV $130k and the area has been growing. ie 50% rental growth in 2 years. Current rent around $1300. So my question is...

"Why hasn't another investor scooped up this property yet?"

 Thanks Steve Babiak. I guess I need to become more familiar with my local codes. I was googling rental license so that's why I didn't find this.

The property is in Limerick township. I know Trappe and Norristown do require them. 

I'm assuming this is only for the city. I'm out in Montgomery County. I searched online and it doesn't look like my township requires a rental license though some neighboring towns do.

Congrats @Shawn Johnson! Was your process for purchasing through auction any different that a usual purchase? I'm just starting to dig into the auction process and would love to hear about your experience.

 Rick, did you find it hard to propose those terms to your investor? I'm looking for the same type of deal. I want to do some flips to build capital but have none to start with. I'm afraid of hard money because repayment can start right away. I'd love a delayed,  interest only deal to account for rehab time.