All Forum Posts by: Greg MacLachlan

Thank you. I'm keeping a close watch on MLS for those deals. Though I'm looking forward to making connections with people who have insight to properties in the area. I've checked in with the REIN Clarksville for their next meeting.

Thank you sir. I’ll check into that. 

He has family in Kentucky and makes a run up there weekly and Clarksville is on the way so it made sense for the investment to be located in that area.

Hello all,

I have an investor who is ready go make the move on the "right property" this summer and  I'm wading through information and comps to make sure that his investment balances with rehab money and still come out ahead in the long term. 

His note to me last week:

Thanks for the listing and the comps, but I do not see the opportunity. The asking price on the house is $96/sq ft and the comps range from $88 - $102/sq ft with only one, at $126/sq ft, that would indicate margin. If we negotiate well and by it at $90/sq ft, then put $10-$15/sq ft in it for rehab then we are right at fair market value with no profit margin. Some of the comps below like Cedar St. and Glenn St. where the buy-in is in the $50/sq ft range are more the buy-in price I would be looking for if you stay in this type of neighborhood. We could buy-in at $50/ft, put in $20 - $25 (assuming the cheaper houses need more done to them), come out at $70 - $75 and market for $90-95/ft. On a 900 sq ft house that’s $18k less realtor fee and interest gets us in-and-out in six months time with about $15k pre-tax profit which is worth the effort. Obviously these figures change if you find something in an area bringing $150/sq ft: mainly just look for opportunities that are $20-30/sq ft under comps so that at first pass there is enough margin to purchase, rehab and market.

Of course due diligence is the primary focus though I'm reaching out to seasoned professionals who know the ropes with any advice.

I appreciate your help.

Thanks.

Greg