All Forum Posts by: Jon Klaus

4-2 across the street from the lake an hour east of Dallas. @1800SF built in 1980. Some updating already complete. Needs about $7K in repairs (mostly new flooring). Possibly add another $3K for a marginal roof that may have a few more years left.

Comps are tough. The waterfront homes across the street would go from $150K-$300K. Off the water, they are everywhere from $25K to $100K. The farther from the water, the lower. Tax appraisal is $83K I think ARV is around $70K?, but could be $60K or $88K. The neighborhood is really lower end , except the waterfront which are really higher.

This one should rent for $750-825/mo. I’d most likely keep it long term or lease/option, but this is different that what I’ve been buying, so I’d be open to flipping or contract for deed or….

What would you pay?

So FSBO sellers don't want calls from people interested in BUYING their properties?

I think it's OK to call--they are advertising their homes for sale.

Jaws, I am asking seriously, and not trying to goad anyone. And I am a relative newbie (many mistakes still lie ahead of me). So far I have been choosing "A" though I have considered some "B's."

I know Mike is disciplined about sticking with his business plan, but does he ever opportunistically do anything else? Or more importantly to me, should I?

El Paso is now bigger than Boston in terms of population. The sun belt cites just keep chugging forward. As Peter Lynch used to say, "the trend is your friend."

http://finance.yahoo.com/news/The-fastest-growing-cities-in-cnnm-2378935999.html?x=0

Mike (and all),

If you are ready to buy another rental and you have 2 choices, which do you go with?

a) 3-1 for $30K all-in, in a bread and butter working class neighborhood on a street where you have 2 other SFRs. Will rent for $650. ARV is $55K.

or

b) a 2-1 a few miles away in a neighborhood that is truly gentrifying. It's about 3 blocks away from newly developed townhomes on land that the developer cleared by scraping houses just like the one you are looking at. This home is clearly in the path of redevelopment, you just aren't sure how fast it will happen. The location is attractive to professionals to be close to their trendy night spots, restaurants and downtown. You can buy this home for $52K all-in and it will rent for $750. ARV is $85K. Those townhomes down the street?--they are renting for $900-$1150. This area is affected by the recession like everywhere else, but it's fairly clear that the macro-trend is pointing to continued growth in this neighborhood.

a or b?

I found this FHA inspection checklist in another thread. Doesn't look too bad.

http://www.appraisaltoday.com/images/Odom_FHA_inspect_list.pdf

I have a 51 year old home that looks like I have a buyer for. FHA financing. It's in good condition, but with it's age it has some issues/aging. Older electric breaker box and wiring, for example. And a roof with about 5 more years or so. What will the inspector be looking for?

HUD--has been foreclosed on and ownership has gone back to the Dept. of HUD, most likely because it was an FHA guaranteed mortgage that defaulted.

REO--foreclosure owned by the bank.

"Update, I made the same offer for the third time (this time after a 10% price reduction) and now have a contract on the house. For all you data freaks out there, my offer was 85% of the newly reduced price and was accepted in the morning of the first day of allowed bidding. "

Congratulations! How much are you paying and what will you do with the property? What is it's ARV? What will it rent for?

I have submitted 9 HUD offers today, ranging from 70% to 108% of asking. I expect that I will get between 0 and 2 accepted.