All Forum Posts by: Jason Taken

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $81,000
Cash invested: $210,000

Nearly full-gut rehab in the Captain's Landing Subdivision. Located in Harnett County, the community has a private river access and boat ramp. Originally built in 1940, this 2-bedroom home with over 9' ceilings will shine once again.

What made you interested in investing in this type of deal?

We've been searching for a fix-and-flip for some time and found this early spring.

How did you find this deal and how did you negotiate it?

This was found on the local MLS.

How did you finance this deal?

We obtained a hard-money loan from Upright to help us fund this deal.

How did you add value to the deal?

This home was a previously neglected. There was roughly 3 feet of clothes, trash, etc. piled in the entire house when we purchased it. We have so far removed all the stuff, gutted almost the entire house, and are currently stuck in permit jail working on the septic relocation.

What was the outcome?

tbd...

Lessons learned? Challenges?

We're in a bit over our head here. The age of the home and its two decade vacancy has led to more damage to the structure than we originally thought. We will end up having to complete more of the labor on this project ourselves than planned and we will be fortunate to finish this one without being in the RED.

Hello-

New to hard money but not to rentals, I own 5 doors that I have funded myself but want to keep some reserves so looking into hard money for my next deal and will refinance into a conventional loan to keep the property.

Are these typical hard money terms or is this too much?

General terms:

80-90% LTV/ 100% LTC with a cap at 70% ARV
9mo note at 12.99% I/O
3pts Origination
$1k UW
$1k Legal
Additional costs - title, appraisal, property insurance (~$2k)
10% of renovation estimate as contingency due at closing.
Renovation funds issued on a reimbursement basis for work completed.

Looking for constructive feedback.

Thank you to all that contribute.

Hello Bigger Pockets, I am very excited to finally write this. I (Dillon Duffy) have been working on a building for a few weeks now and listening to Bigger Pockets podcast and videos on YouTube and trying to self learn how to navigate through this exciting but stressful project.

I purchased my current home in May 2021 for 156k. We went from a 2 bedroom 1 bath home on a little under a half an acre to a 4 bed 3 bath home and an extra building the prior owners called the "pottery barn" that sits on 2.5 acres in town. The move was to be in a bigger house to supplement our growing family. The only downfall was the neighbors were not the best. Lot of foot traffic from shady characters and not the cleanest of properties. After a few years of struggle with a "easement driveway" between the home, we were able to purchase that property in Nov 2023 for 20k. That's when my journey of maybe I will start having a rental property. After getting the property turned over to me, we soon realized the home wasn't in the shape of being a good flip, so we decided to tear down and have a open lot for the time. 

With that we go back to the aforementioned "pottery barn" this building sat directly behind their home. With my dreams of controlling a rental property next to me dashed due to poor home structure I started thinking this building used to be a home so why not flip it back to that and make some money off it! And that leads me to where I am at now, currently gutting and setting up a plan to renovate the building. The goal is to have that done in the next 2-3 months and then start on rebuilding but not just a home on the now vacant lot, but a duplex. My wife and I have been also mulling the idea of when we build the duplex of living in one and renting out the other while we sell our home we are currently in as well and build our dream home. If all goes well we know we got a great deal on this home with an extra building and will turn it into a great portfolio starter for the long term! 

I would absolutely love any tips and teachings on how I should finance my first rental along with when we get to the duplex. I will add we took out a loan to buy the home for 20k along with extra cash to put into our home to make a "home office" out of the attached garage we never used except for storage so we added even more value to our 156k purchase. Again I am very excited to be here and ready to change my future and my families forever!

Long story short , didn’t do my due diligence . Purchased not one but two properties from a foreclosure with no title search . Comes to find out each property has a mortgage. Combined with the price I paid through the auction, they are much higher than market value

property 1: paid 100k, owe 170k. Worth 200k. Rent is 1800 and HOA is 400

property 2: paid 280, owe 370, worth 500. Rent is 3500, HOA is 1500.

I have a lawyer negotiating with the lenders currently. 

what would you do if you were in this situation? Buy out the properties mortgages and sell it for a loss and try to minimize the total loss? Or rent out, refinance , and recoup money else where knowing what I know now .

location: southern Florida. 

Hey BP Fam, two questions for you. 1st question; is there a huge difference in the rate for a conforming conventional loan for an investment property vs primary home? 2nd questions; I Just got pre approved for a non QM product: 20% down, 8.25% interest rate, 12 month pre payment penalty period, 2 points, and Conforming Conventional product: 25% down payment, 8% interest rate, no pre payment penalty, 1 point fee. 2-4 unit in Ohio. Are these good options? Thanks!

A n00b contacted me about the numerous "great deals" he was seeing FSBOs offering on their condos throughout Florida.  As a resident of the Hurricane Sunshine State, I can tell you it's Fool's Gold.  The assessments. . .it's all about the assessments.
https://finance.yahoo.com/news/poison-pill-facing-florida-co...

I'm running into a issue where I cannot find an agent licensed in NJ and FL. I'm looking to get one general liability policy for three properties. One is located in NJ and the other two is located in FL. All three properties have 3 units or less. Does anyone know of any companies that they are aware that can quote these properties under a single policy?

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $12,500
Cash invested: $130,000
Sale price: $204,900

Purchased home and completed a complete renovation of the property. Rented home for $1800 per month before selling it.

Wisconsin landlord tenant law has been pretty reasonable, but we just had a major shift with the Koble case. Because of language in a "homemade" lease the landlord had to pay back all the rent they have received over the entire tenancy. This could result in class action lawsuits where tenants of a building file together and basically wipe out even mid-sized landlords.

 In summary: if a landlord has a provision in its rental agreement, which includes any rental documents as they are incorporated into the rental agreement, that violate any of the “10 Deadly Sins,” the landlord must return all rent that it received from the tenant during the tenant’s entire tenancy. (The “10 Deadly Sins” are illegal rental agreement provisions as set forth in Wis. Stat. § 704.44.)

Essentially, because of something that may not even have been intentional by the landlord, the tenant will get to live in the landlord’s rental property for free for the tenant’s entire tenancy, even if the tenant was not damaged because of the prohibited language in the rental agreement.

You can read the details on the website of the RPA, which is the largest REIA in Wisconsin and will try to fight this.

RPA is a Milwaukee based non-profit and your support is appreciated.

We are hosting an emergency Zoom call tomorrow with Atty Tristan Pettit, anyone can join, details under RPAWI.org

Hello everyone,
I am looking for an insurance broker for builders risk policies for some properties in the Rome Georgia area. 

If anyone has any recommendations I’d appreciate any help thank you.