All Forum Posts by: Frank Geiger

Christopher,

I am in the military as well. If you don't want properties scattered throughout, I would suggest creating a team where you plan on retiring. That way you can come home after your contract and be close to your properties. 

Jared,

Yes and no. First off, everything can be fixed for a price.

The year, condition, and location of the home can tell you a lot about what's inside the walls. Some early 1900 homes have cast iron plumbing and knob and tube wiring. This can add quickly to unforeseen expenses during a flip. Some of these older homes don't have insulation or suitable weatherproofing either so keep an eye out for rotted wood.

I do not think it increases overall risk. Just need to make sure you add reserves in for unforeseen expenses when flipping. Get a good inspector and walk around the property. Ask him every question you can think of. 

You need to work off the ARV for like properties around the subject property. If you are buying a fixer upper for 170k, when the comps of rehabbed properties is 180k it is not a good deal.

Best of Luck!

Replacing the main sewer line was the worst I have had to do... very costly. 

You need to get your hands on that lease. If you do evict, make sure to check your state laws. Most of the time letting the old tenant stay in the property turns out bad. But if you want to let him stay, screen the existing tenant, provide a new lease, and raise to market rents. 

It is your property now. Lease option might be a good strategy if he wants to remain in the property. 

Assuming the home is updated and in good condition. Make sure the rent is in-line with the market. Seems like you bought your dream house and not a good cash flow rental property. Some houses/areas make better rentals then others.

What is your strategy with this home? Are you looking to move back in eventually. $20 a month is not sufficient for repairs over the life of the mortgage. So if you want to hold onto the property, just know you will be paying out of pocket to replace things.

My guess would be the owner already scheduled a city inspection for the addition and it was denied likely from not meeting code.

Don't rent to the owner. He is already behind in his payments. This should be calculated like any other deal. ARV: 156k (never go with aggressive). Make sure you go off solid comps. The bank would have to approve the short sale. You would need to get this well under 111k for using HM or Wholesaling.

Looks like a solid BRRRR if you can get all parties to agree on a price. Pending rent amounts.

HM won't lend to you with only 7k. You'll lose that just in closing the property.

I would suggest a live-in-flip/BRRRR with an FHA loan or save some money up because living with only 7k to your name and sinking it into RE is an uphill battle.

VA loan is a very costly loan upfront. Additional fees are tacked on to the loan in order for you to get your 0% down. That is a one time service fee. Talk to a lender and ask about your options.

I don't know all the numbers but $800 is really minimal in the long term. That is about what it will cost you to have a PM fill the property. Did you overpay? Is that in PMI? Are you owner occupying the property?

Why is the $800 a show stopper?

Amanda,

Every property will always need some extent of repair. I would never pay full value for a property in the markets I invest in.

With a monthly rent of $1300, you would need to sell the property to the investor at 130k (if that particular investor's strategy is based off the 1% rule). Don't forget to tally up any repairs, closing costs, and your profit into the deal. 

Before learning how to wholesale, everyone should learn to invest in properties themselves. There are so many different types of investors in the market with vastly different investment strategies. Try finding a good wholesaler in your area and ask them to show you the ropes. Remember to add value to their business so they are more inclined to help teach you. You can do this by door knocking, sending out flyers, or driving for dollars.

You would have to get this deal for half of what its worth and a FSBO is likely trying to drain every penny from that deal to avoid Realtor fees. Hope this helps! Keep educating and don't give up!