All Forum Posts by: Jorge Rullan

Hi Nick,

What part of Central Florida are looking at?  If there's anything I can do to help you, let me know.

Jorge

I think it would depend on the ceiling height.  If your ceilings are 9+ feet, I would do knock down.  You'll hardly notice it anyways.  But if you have lower ceilings, as most homes built pre-1970ish, I would do flat.  Just make sure whomever does the work can do it.  I have seen some really bad ones and a few good ones.  FYI, depending on the type of roller you use to paint, you may have an orange peel effect anyways. Good luck with your projects.

Originally posted by @Brian Watkins:

As I was following up with leads and investors I've worked with in the past I came across a problem one of my colleagues is facing..

"Im in about $38K from my personal investment and loan payoff around $52K. So I would need about $90K just to break even and I'm still paying $800 hard money note. Using a quote of $22K to finish the rehab. I'm looking at needing to do a retail sale or buy and hold at $112K. Im willing to do what ever is needed to get out of this mess."

She fell into this hole because a Contractor ran off with her money after doing very little to no work. ARV on the duplex about 6 months ago was $105K. Can't be much more than $110K now. Potential Rental Income = $1,600-$1,800/month. Property located on the Atlanta Beltline which is part of the reason why she does not want to let it go. Any suggestions on how I can help her? I sense motivation however I can't see a solution through the numbers.

Have you, or she, looked into converting this into a traditional loan? Some smaller loan originators may lend you approximately 80% of the ARV. If she plans on living there she could try VA or FHA. It may a long shot but if it worked, you may be able to pay off your hard money, save that relationship and allow you to keep the property as a long term investment/passive income producing property. Good Luck.

Here is the bottom line; if you purchase that property she will get her commission and that's all she is required to do.  You however are stuck with the bad electrical, un-permitted addition/conversions and possibly bad zoning.  The city/county could force you to tear down anything that was not permitted.  They could also fine you which would increase your overall costs.  My recommendation, walk away from both the realtor and the property.  As an investment property, it doesn't sound like it is a good investment.  But that's my opinion without seeing the numbers.  Good Luck.

@Eric Jackson I am looking to get into flipping residential homes.  I have a background in residential construction (kitchen and bathroom remodeling). I did set up my keyword alerts and I am excited to get involved with this aspect of real estate.  Thanks for the support!

Jorge

Hello everyone,

I am a REALTOR from the Orlando area.  I currently wok in Seminole and Volusia Counties.  I am new to investing and hope to invest in my first property this year!  I am also looking to get involved in wholesaling.  

• Best advice, I can think of; have an attorney look through the existing lease agreements and let them advise you of your options.  
• And/Or, as some of the above folks have mentioned, it will depend of the type of leases the tennants have and their current status (i.e. are they still within their terms, are they month to month or is there a minimum notice of time required prior to vacating).  
• You could also place an offer (contract) on the property with the condition that you negotiate a settlement with the tennants for them to vacate, voluntarily. 
• It all comes down to how much work and money you want to invest in the procurement process of the property.  
• Good Luck

When you buy a property that is rented. The new owner has to honor the lease agreement. If you evict your tenant because you bought the property and want to use it, you expose yourself to all sorts of liabilities. The tenant can turn around and sue for breach of contract and force you to pay relocation expenses that include deposits and moving expenses. I don't think this deal is a good deal for you. You are already stretching your budget and making yourself vulnerable to civil liabilities. My two cents, good luck. Jorge Rullan