All Forum Posts by: Account Closed

@Joel Owens  Thanks for breaking it down for a newbie like me.  How else does one invest in properties without your own money if you don't get investors to provide it?  So you do need money to get started in investing....

Thanks @Account Closed and @Joel Owens for your response.  I didn't have anyone to run this by so I appreciate your input.  I'm still thinking of seeing the place for the experience and tell him what you said to get his thoughts and reasoning.  Thanks again.

This would be my first deal. Its in St Mary's County, MD, 2 hours from where I live. I've had one conversation with the owner who is very aware that I am inexperienced and new to investing, from the questions I've asked. He also knows I need to raise the money for the down payment. I called him back today wanting more details about the expenses and he was quick with his answers: 12% CAP rate, 1.2M asking and 350k down payment. Owner is retiring and willing to seller finance. What I know about the property is:

income: 14,000 to 22,000 a month,  expenses: 9,000 taxes, 8,700 trash p/u, he pays water, electric, water is not from city water.  Its 3 bldg., large 2B, 2BA & 3B, 2BA, low turnover, month to month leases: rent is based on per person, 1 person: 875.00 rent 2B, 2Ba, Den, Balcony, 135.00 more for 2nd person, etc.. same lease for everyone,

How can I show him that I am a serious buyer.  I am willing to go 80/20 with a partner just for the learning experience.  I need investor/s for the down payment. Any advice would be appreciated.

Thanks

@Craig Montesano for the inspiration. What do you use for marketing to find these deals?

Hi @Alison Michel! Good to know more people from our area! I live in Kensington, MD. if I hear of any good REI meetings I'll let you know. Welcome!

There's a great Washington REIA Meeting tonight here in Maryland. Doors open @6:30 lots of good networking. Cost $25 at the door. Bring your deals, Buyers will be there!
Location: Woman's Club of Bethesda, 5500 Sonoma Rd., Bethesda, MD. 20814

Thanks @Belinda D.! I am changing the repairs cost amount, it was too low.

Thanks again @Dave Grosse and @Erik Hitzelberger.
Roof is 2yrs old. AC Unit is 12yr old and Furnace is 3 yrs old. The kitchen and kitchen floor is outdated. Same with the two bathrooms. Old paneling in basement needs to come out I'm sure. Hardwood floors on main level and old carpeting in basement. The carport cement driveway needs some work. There is a tenant that will be moving out the first of the new year.

I base my repairs at $10 per sq ft. Its a 1273sf house. There seems to be no other major repairs necessary. In a well sought after neighborhood. I will not be rehabbing myself.

Thanks again for everyones thoughts and suggestions.

I had a Realtor run COMPS for me. Two other homes, same as hers, sold for 285K/275K near her street.

Thanks so much for your suggestions, @Dave Grosse, @Troy Fisher, @KellyP.,and @Alan Russell! She has no other offers at this time.
I feel better knowing that I'm being fair to her. Thanks again!