All Forum Posts by: Herlando Y.

I am looking to purchase a church property here. I think a lease to purchase agreement will benefit all parties due to tax reasons. What do you guys think and what other information  do you guys need? I never done a lease to purchase agreement.

*update: The homeowner is falsely stating I am harassing the tenant. (I met them once during the tour and no additional contact)  I am hearing this first time from his lawyer. Does the homeowner not want to sell the house? I do not understand what is happening.

Hello,

I am doing a short sale with a homeowner, but he suddenly dropped off the face of the earth. The bank also did not hear from the home owner and decided to put the property in sheriff sale. Is there anything I can do, or should I just find a Hard Money lender and head over to the sheriff sale?

Forgot to mention the ARV is about 330 and I offered 266. After all the cost, it will take me about 12 years to recoup my initial cash investment.

 The contractors are family friends and I believe the deal is not a great deal after all. Here are the itemized list of things that needs repair.

2 units 1100 sqft each units

Roof - New Roof Required, Gutter issues
Outside steps & railing needs to be replace or fixed. Steps are fall apart. 
HVAC - Need to replace electric baseboard heating
Kitchen - Refinish Cabinets & Replace 2x Counter top
Floor needs to be updated
New appliances (all electric)
Bathroom - Bathroom needs update (Bath fitters, new vanity/sink)
New floor
Replace 2-4 exterior door
Replace 3 windows
Replace 2 large window (Size of 2 windows)
Paint
Replace Carpets
Potential foundation issue

On the plus side the plumbing and electric is working perfectly. No sheet rock work. House appears to be in great cosmetic condition.

@Christopher Brainard

I feel like giving up on this house right now and learn more about rehab cost before I jump back in. How do you suggest finding reasonable priced contractors?

 I guess this is my welcoming to the world or real estate.

Hello BP,

I am in central jersey and trying to acquire my first property. Property is built 1970's. It is very clean inside and the electrical and plumbing all seems to work. No mold in sight and structurally sound.  

The numbers all seems to make sense until I got to the rehab cost. The property have the following issues: require new roof, 4 doors, 3 windows, 2x kitchen update, 2x bathroom slight update, appliances, new Hvac system (heating is electric baseboard) and other touch ups like paint and etc... i contacted 2 contractors and they gave me between 40-59k rehab cost. 

I know I am a newbie, but I am floored that the cost is so high. Am I not getting the right contractors or is this the normal rehab cost for flips?

Thanks for all the info. 

I told my agent to put more escrow down, but he told me it is not industry practice...