All Forum Posts by: David A.

Quick question about Hubzu - 

There's a property I'm interested in that I saw on MLS, and I just realized that it was on Hubzu. I went over to Hubzu, and see that it's "Highest & Best Period Ended" and that I can "Place Backup Offer". Question 1: What does this actually mean? Does it mean that they've accepted an offer, or they haven't gotten a satisfactory one, and are going to put it back up and re-start the auction after a certain period? 

When I follow the "Place Backup Offer" button, it gives me an automatic offer amount of about 64k, while the property is "listed" at around 100k. Question 2: Is 64k picking up as the highest bid previously placed on this house? I don't know if they do blind bids (highest bid submitted takes it) or if the actual bid price goes up with each individual offer. It says that there have been 12 bids (EDIT: Did it? I swear I saw that, but now I can't find it...). However, I do not know if this is "reset" to a lower number because the bidding period ended, or if this is where it was left off.

I'm definitely interested in the house, but won't be in it until the weekend. Question 3: Should I go ahead and place a "backup offer" now since it's a long weekend? If they accept my offer, will I be able to take the weekend to look it over before moving forward and free to decline, or will I have to immediately address this? Is there a very slim chance that my offer will be accepted? If I do, should I place it at 64k where it's automatically filling it in for me, or something more competitive? This house is in a 200k area, and looks decent but not great from the outside, so I'm not sure if it's a disaster inside or what. It supposedly qualifies for a conventional loan, so...

Thanks in advance, guys!

It seems that, if you just don't want your name on the lease/checks, registering a DBA is by far the easiest (and cheapest) option - plus you can order checks, take out a credit card, etc., etc., etc. under that name if you have an account at a bank with the DBA. If you're not worried about personal liabilities, I'd say go for it.

Wow, came out great - and I checked out the videos on your YouTube, you should do that with your next flip, was great being able to watch some individual projects!

Make sure you update us when it's sold!

Hey, guys - 

So for as long as I've been on this site (first came across it about two years ago) and really gotten a significant interest in REI, I have been attracted to MFH buy-and-holds in lower-income (and probably Section 8) cities in Conn, and then maybe trying out a few flips 5+ years down the road once I'm really secure in my investments and have built up capital. I have been really trying to figure out the best way to get started on the scene, as I'll be buying for the first time, and also teaching in an urban under-performing public school in about a year, so there are several first-time home buyer opportunities available that make a lot of economic sense in my state, though I'm typically most drawn to the idea of a FHA 203k as my first buy, as it seems to include the least amount of restrictions (mostly, just 1 year owner-occupied).

HOWEVER. The more I think about it, I'm sort of being pulled to START my career in REI with a flip in a completely different area, just to give myself a bit of financial backing. There are lots of towns in CT with median home prices well over 300k and awesome school districts (for locals, think West Hartford, Farmington, Orange, Monroe) where you can pick up a scraggler for 150-200k, give it some minor/straightforward rehab (usually kitchen & bath updating, a new face, and just a lot of lipstick) for under 50k, and all of its comps are selling for 350k+.

If using a FHA 203k, for example, I'd be living in and renovating at the same time, then after a year, sell it, and use those proceeds to buy a MFH for $50k using traditional financing, which I would now have the capital to put a DP on AND rehab, with some left over.

I guess my main qualm is that I feel like I'd be wasting an amazing opportunity (FHA loan) on a house that's 40K with 20K of rehab, when I could use that same loan for a 150k house and max out the rehab portion, which could then set me up for success by already having a good flip under my belt AND capital to move forward with. Also, it would keep me from having to live in a MFH in a C- neighborhood for a year (which I don't MIND per se, but it would be great if I could finance that traditionally, you know?).

What do you guys think? Am I being idealistic? Would this be a good tactic?

Wow, that's gotta be the way to do it, huh? Congratulations!!

Hey Linda, congrats on what sounds like a great property! I just wanted to commend you on taking in some more transitory, perhaps less-desirable tenants... I've gotten a very negative feel regarding tenants in rentals for the most part on this board, it's really refreshing to find somebody who is willing to give the benefit of the doubt to the disabled, recently homeless, just-fleeing-the-nest sort of people, and still with a positive attitude toward them all. :)

Wow, congratulations! Not looking for the contact for your HML, just what were your terms for the loan considering it was 100% both in purchase and reno costs... with the refi, were you able to get enough back to fully pay back HML and cover fees and upfront costs?

@Barbara G. I think Waterbury's a tricky area for REI unless you're looking to work in low-income, especially Section 8, housing. I am still learning about REI, but I'm from a little north of Waterbury, and am thinking of purchasing MFHs really cheap in Waterbury and making them very Section 8-friendly. That seems to be where the money is... I have a lot of friends who are maybe from Waterbury or lived there for a short time, but it really doesn't attract anybody who is looking to rent for north of even $800/month unless you're in Town Plot or a few other very small areas. Everybody I know who works or goes to school in Waterbury doesn't actually live there.

That sounds like a really strange situation that I'd never even think of. Do you have anything in your lease regarding maybe installing semi-permanent structures in common areas (i.e., the backyard)? 

Hey, all! I wasn't really sure what to call this post, so forgive me my scatter-brained topic! 

I'm looking into a few different options of ways to purchase a home once I get around to buying my first one late next year, and one of the more attractive opportunities is a state program for teachers who are teaching in-demand subjects in transitional/priority (read: poor) districts, which is what I believe I'll be doing in a year's time.

There are a lot of incentives, but the only big drawback seems to be that in "some cases" (super vague, can't dig up too much more) if you sell the home within 9 years and make capital gains, you can be charged what sounds to be a pretty hefty federal tax. 

My strategy at this point seems to be going toward buying & holding MFHs, so in theory this wouldn't be too problematic... it just worries me by not having a clear exit strategy should I need one; that I'd be cornered into holding onto a home that maybe becomes a burden/nuisance for fear of getting slammed with some unexpected loss come tax season.

Has anyone else here had a similar experience? Is this something not worth looking into when weighing risks?