All Forum Posts by: Tamara Campbell

Sorry, did not mean to confuse you. You are correct as to what a short sale is. Maybe I missed something but you said the property is worth $350-420K and the lady only owes $250K. Most banks i have dealt with would not consider a short sale on that . Too much equity. Therefore I would qustion is it really worth $350K+. up here in CT (which might be different where you are) the banks are not just giving properties away. (at least not if they think there is a pile if equity in them) If you are sure of the value and the property does not need any work, it sounds like a deal. Good luck
Hope that helps
Jay

Question: what does equity have to do with it if you cant pay your mortgage?? what is the standard practice? will the bank force(can they?) you to refi?? if you have time, can you expand on what equity has to do with it.

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Originally posted by "feldmanbro":

ilovegoob
My only question is, You say And you also say,
To me (My opinion) I see red flags. If the bank is agreeing to a short sale That usually means they believe the house is worth about or less then is owed. And you say she owes about $250K. I understand they may have the value wrong but it if was me I would be doing some serious home work. I have completed a number of short sales and form what i have seen they are not typically that far off on the value. (45-50%) Where did you get the comps?

Don trying to kill the party just giving
My 2 cents
Thanks
Jay

I am a inactive realtor(that has never sold a house) so I have access thru a former broke friend. You are confusing me!! LOL. I thought the short sale was agreeing to sell for less that the balance of the loan. If she owes 250 and I offer 200, wouldnt it be better to take that than risk waiting it out in this market. I think the market conditions are playing a huge part. Please correct me if I am wrong.

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I definetly want to live there, the house is twice the size of my condo! I have a duplex that I rent out but as you said, buying a personal home is far different. I guess i feel like i am getting too good of a deal so something must be wrong with it. I bought the duplex at a discount with equity so I have an idea of what i am doing. I plan on going the section 8 route with the condo as I have done with the duplex.

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I live in Miami and I have the oppurtunity to invest in a personal home. I know a woman who has missed a few payments on her mortgage and her bank is allowing her to do a short sale. The comps in the area are between 350-420K. She only has 250 left on her mortgage and I am going to offer 200k to the bank. The roof needs about 15K in work, the taxes are about 3800, and i was approved for an FHA loan for 30 years @ 5.85%. I dont know if anyone lives here in Miami but there are homes being foreclosed on everywhere and the deals are abundant. Does this deal sounds feasible??

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Mike i think your points are valid, but [EDITED BY ADMIN]. Not everyone is as seasoned as you are and i thought that's what the forum is for......to get and exchange info.

Anywhoo, love the tips, thanks.

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you can call me goob. i am a manager at a law firm. have my bachelors and i am working on my MBA as we speak. i am really looking for stable income and the ability to work for myself.

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broward county, tamarac really.

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Originally posted by "TC":

How in the world are you going to get $1300 a month on a 2 bedroom apartment from Sec 8 and don't forget, whatever they tell you, you can charge for rent is all you can charge for rent. If you get caught making deals with your tenants to give you more then that, you can go to jail.

1300 is what section 8 quoted as far as what they would pay for the property.

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Originally posted by "solbergg":

I'm a little confused how you purchased it for 150k, financed 200k and only ended up with 26k at closing. Are you saying the 24k of the remaining 50k is going towards repairs?

Also, your expense report is a little off. Maintenance and repairs will be more like %10 of gross rents in the long run, and you forgot to include property management, which is generally 10-15% of gross rents. 4% vacancy is rather optimistic as well, I would factor in at least 8%. Here's a revised monthly report:

Monthly NOI = 2600

Monthly Expenses:

Taxes:292
Ins:142
Vacancy: 208
Maintenance: 260
Management: 260

Monthly NOE = 1162

Remainder = 1438
Debt Service = 1700

Net Operating Loss = -262

And even this expense sheet is rather optimistic. I didn't include any owner paid utilities, advertising, eviction costs, etc. MikeOH would estimate the expenses to add up to $1300 in the long run, making a -400 operating loss per month.

There is no charge for property management because we are doing ourselves, vacancy will not be a problem because its in a section 8 area and we already have people calling us. The insurance was paid with the mortgage for a year so that expense is already taken care of.

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two 2/1 units in hollywood, fl

Paid: 150k
Financed: 200k
Cash out at closing: 26k
Rent:31,200
Mortgage:1700/mo

Taxes:3,5k
Ins:1700
Vacancy: 1400
Maintenance: 1k
total: 7,600

Net profit: 23,600

23,600-31200= 5600

Loan @ 10%, 0 down

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All Forum Posts by: Tamara Campbell

Tamara Campbell has started 4 posts and replied 12 times.

Post: Should I?

Post: Should I?

Post: Should I?

Post: Should I?

Post: Negotiation Tips for buyers and sellers - REMOVED By User

Post: Desperatesellerlover here in Fl. Hi all!!!

Post: Desperatesellerlover here in Fl. Hi all!!!

Post: A duplex of a deal

Post: A duplex of a deal

Post: A duplex of a deal