All Forum Posts by: Michael Glaser

@Andrew Syrios there was a house that sold a block over newly remodeled for $162. I'm not selling as I'd like to hold this. Do you recommend I try and lower the price once I have inspections seeing as how I already offered?

@John Teachout Bath Remodel. I have my reservations about adding a 4th BR. Though, the screened in porch isn't really utilized and it's under the roofline. It would be a good ROI to add SQFT in my opinion.

@Ernesto Hernandez He's retired. He has 3 triplexes in a different part of town. 

The $60K of rehab in my numbers is WORST CASE. I'm hoping to put $35-40 and get it in solid shape. 

Also, he's owned the property for over 25yrs so he's squeezed all of his appreciation out of it already. 

@John Teachout The numbers will always tell me what to do. The owner, like some, get excited about the Zillow number. Only the Zillow doesn't take into account that this house is in a less than desirable county, but close to the most desirable county. 

The neighborhood is in the middle to middle end of a transition. This area borders Johnson County, the richest and most affluent county in all of Kansas. 81st in medium income in the entire USA. 

The number I've offered is what works for my numbers. I think it's pretty reasonable given the work I'll have to do to the property to make it up to par with rentals in the area. To command a good return, rent will need to be $1,400 - $1,600. The house is long overdue for a proper makeover. 

I've been speaking with this gentleman about a house he's trying to list in an up and coming area just north of the Johnson County line in KCK.

The house is a 3BR 1Bath. Needs about $40-50K in renovations, most likely $60K. New kitchen, new bathroom, new flooring. Needs the entire HVAC system to be rerouted above the ceiling through the attic space. It has brand new windows and sliding glass door. There's a screened in porch that's underneath the roofline that I could turn into a 4th bedroom rather easily. The house was filled with two hoarders and still has a smell of cats and ammonia.

Rent:

$1,195 - Current rent

$1,419 - Rentometer 24 month 3BR

$2,055 - Rentometer 24 month 4BR

$1,600 - My estimated rent for a 4BR with new kitchen, bath, flooring.

He originally valued the home at Zillow's $124,000. I explained to him that's newly or recently renovated house price. He admits the kitchen, bathroom and furnace need to be all redone/rerouted.

Stats:

3BR SQFT: 1,200

4BR SQFT: 1,425

Lot SQFT: 10,700

Built: 1954

No price history

County Assessor:

Redfin - $114K

Zillow - $124K

Remax - $106

MY OFFER: $75K

Questions I have:

- How should I propose an owner finance deal if I'm renovating?

- How to calculate how much he's saving by selling it to me off-market/not paying agent?

Updated about 24 hours ago

Anybody?

Michael Glaser

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I've been speaking with this gentleman about a house he's trying to list in an up and coming area just north of the Johnson County line in KCK. 

The house is a 3BR 1Bath. Needs about $40-50K in renovations, most likely $60K. New kitchen, new bathroom, new flooring. Needs the entire HVAC system to be rerouted above the ceiling through the attic space. It has brand new windows and sliding glass door. There's a screened in porch that's underneath the roofline that I could turn into a 4th bedroom rather easily. The house was filled with two hoarders and still has a smell of cats and ammonia. 

Rent:

$1,195 - Current rent

$1,419 - Rentometer 24 month 3BR

$2,055 - Rentometer 24 month 4BR

$1,600 - My estimated rent for a 4BR with new kitchen, bath, flooring. 

He originally valued the home at Zillow's $124,000. I explained to him that's newly or recently renovated house price. He admits the kitchen, bathroom and furnace need to be all redone/rerouted. 

Stats:

3BR SQFT: 1,200

4BR SQFT: 1,425

Lot SQFT: 10,700

Built: 1954

No price history

County Assessor:

Redfin - $114K

Zillow - $124K

Remax - $106

MY OFFER: $75K

Questions I have:

- How should I propose an owner finance deal if I'm renovating?

- How to calculate how much he's saving by selling it to me off-market/not paying agent?

I'm serious, not serious about this KCK lake house(pond house) and what it would rent for. I have properties in the KCK area, but this is a bit different. Sits on 8 acres and has a pretty good looking fishing pond. 

Zillow isn't much of a good guess at $1,200/month and neither is Rentometer at $831/month . 

I'm thinking this could rent anywher from the $1,400 - $1,700 range for someone with enough money that doesn't want to buy, but wants a relaxing retirement home. 

The other option is Airbnb for those that want a nice getaway while in KCK. If that's even a thing... If it rents half the month at $85/night would be $1,290/month.

Would be interested what KC knowledgable people thinking about this idea.

@Jason D. wouldn't I be hit with $4,000+ or $1,000 per house for originating a new loan?

@Ryan O'Mara The local bank I go through in KC has given proof of funds before, but this might be too big vs. my LTV. I'm hoping on a call with them this morning and will let you all know what they say.

@Caleb Heimsoth doubt I can do a cash-out refi as the loan on the 2 only about 15 months old. May not be seasoned enough, but doesn't hurt to ask.

@Jason D. I don't believe there are any prepayment penalties, but I haven't heard of anyone getting a 30yr loan on 4 SFH's. Or am I not calling enough banks?

I'm about to have a renter move out that I've pushed to buy his own home. He has a 1yr old and I've tried to motivate him to become a homeowner so I'm SUPER stoked he's on his way.

The problem is I have to get a new renter in June. 

It's been a year since I've had to turn over a property so is there anything new out there I should know about?

Or is Zillow and a sign out front still the best way to go?

It's been over a year since I've had an offer accepted. I found that I was being way too conservative with my offers on SFH's that still made sense by the numbers. Stuck in prices of the past that many of us find ourselves in. Painfully going through old offers that would've been great deals if I had only gone in at asking 18 months ago, but I digress...

I was in KC last week and looked at a lot of property that would work. My first two offers were accepted and I'm now spinning my wheels trying to figure out the best way to finance them both.

April 2016:

I have 1x SFH on a 30yr fixed that I don't want to touch at 5.125%. 20% down. LTV 68%

January 2017:

I have 4x SFH on a commercial at 5.25 on a 5yr note, amortized 20yr. 20% down. LTV 56%

Both houses' offers are $90K total. I more than have the $18K or 20% down.

I have anywhere from $40K-$60K in equity, conservatively as I bought the 4 below market value. 

What's the best way to leverage this without putting my cash on the table? I have other deals I'd like to use my cash for, but I don't know the best way to leverage the equity I already have. Do I shop banks with all 5? Do I shop with the 4? 

Looking to close on both properties by mid-May so time is of the essence.