All Forum Posts by: Justin Insley

@Lance Wakefield @Christopher Brainard You both said exactly what I expected. Just wanted to spit the numbers out on here to double check before I move on.

Even if the numbers were more in my favor, the mold issue altogether was a turn off for a amateur like myself.

Thanks again guys and until next time.

-Justin

Hello BP,

So I have been putting the foot miles in recently in my attempt to find real estate opportunities before they hit the MLS (or become foreclosed).

I have tracked down the owner of a 1,100 sqft cottage in my area, she had inherited the property after her mother passed away. She said she wanted $170k for the house but that was just shy of the ARV of the house, and this house was not move in ready.

After a thorough walk-through I estimated my rehab bill to be about $60k. This was including a $25k estimate that she had received for a mold problem in the basement. 

So my original offer was $90k for the house seeing comps being sold for $185k in the area.

She rejected my offer because she owed more on the house than what I had offered. Me being slightly naive, I ASSumed she owned the property free and clear because her mother owned it since the 70's. However, a recent refinance for a renovation in the back left them with a $149k mortgage to deal with.

The owner says that she wants out of the house at $149k (being that is what she owes). I do not see the numbers working if I were to purchase at that price.

My initial intentions were to buy and flip, would a buy and hold be a plausible option if I were to take over the mortgage?

Any advice is greatly appreciated!

-Justin

Originally posted by @Steve Vaughan:

Hi @Justin Insley. Conventional and FHA loans, in my experience, are approved on the Cs of the borrower. To obtain financing based on the income of the asset, you have to get into larger commercial properties. Could still be residential, but over 5 units at least. Why do you think seller financing isn't feasible?

 It's feasible just not as common from what I see as acquiring a loan from a bank. And every owner I have come across this far wants full sale price at close. 

Hello all, I am currently in the RE market to purchase my first property. I am interested in a duplex/triplex to live-in rehab while renting out units. My main obstacle I have crossed would be as a college student, I work unconventional jobs, not proving much income at all. I do have money for down payments and I am currently attempting to wholesale distressed/vacant homes in my nearby area. My main question to BP would be what are ways I could finance to help me reach my goal of obtaining a duplex/triplex? I understand owner-financing but that is not always a likely choice. Is their any loans such as a 203k loan where one can obtain with proving little income? Or use potential rent gained to factor into the loan? Thank you BP community for any advice you have to offer! Justin

Hello community of BP,

My name is Justin I am 22 and I have been lurking this site for a week or so. 

I hope to become a active member of this community. 

My current interests are purchasing my first house, as well as income properties. 

Look forward to all this website has to offer.