All Forum Posts by: Grant Stoecklin

Denise Evans, Im new to tax deed investing. would you mind elaborating on your suggestion of reaching out to the owners and offering to buy their rights? Are you simply finding the owner via the list of tax delinquent properties available on ALDOR? I feel like Ive heard that the rules have changed recently with tax delinquent properties in terms of how long you have to wait to take full ownership? thanks

As a home inspector, two things come to mind whenever someone says they are looking to buy a 60's home.

1) cast iron plumbing. Unless they re-plumbed then the house will likely have cast iron plumbing which insurance companies may not want to insure. It can be costly to re-pipe.

2) electrical: I will often see issues with panels and wiring. The wiring material and panel may be old and cause an issue with insurability.  Does it have a fuse panel or breakers?

3 years on the market may be, as someone said, a big foundation issue but i'm wondering if it isnt' due to the fact that its weird and ugly and therefore the potential swath of buyers is smaller. Will it be weird and ugly when you get done with it or is it going to be an updated weird house that may not warrant a price tag of 400k upon completion?

Any evidence of termites (especially subterranean termites)? There can be massive and unseen damage behind walls. A quick and dirty method is to push on the siding and feel for deflection (suggesting weak, termite-ridden wood behind).

Even if you end up putting 50k into it and end up with an ARV of 350 at the time you put it on market, its likely still worth a go (though you may want to add a second bath.....)

As I understand it, the 70% rule would be used here where you would pay 70 percent of the ARV minus the rehab costs. In this case it would be $63,000 minus $30,000. 33k would be the purchase price here. You might offer 30k and end up at 33-35k. There are also considerations of agent commissions and closing costs as well as holding costs if purchasing and/or rehabbing with borrowed money.