All Forum Posts by: Karen M.

This would be a buy and hold.  I think the numbers do make sense, I will need to double-and triple-check that, but the first look at the numbers is solid.  

Hi everybody, I'm a new investor, have not invested yet, but I'm starting to look.  I found a property that I am interested in and very curious about…. maybe it's a deal, maybe it's not.   It looks very interesting.  Anyway, here are a few photos that I took yesterday when I drove by.  I am curious to what your impressions are of these initial photos.

The property is a foreclosure.  I would like to go and see the inside either this week, or next week when my kids are back in school (and I can focus a little more!)

1.  Ripped window screens

2.  Is this an air conditioning box?

3.  Gutter growth (maple trees? roof damage?)

There were two, count 'em, two realtor signs in the front yard.  It appears this has been on the market for a while… it is listed for a low price for the area.

Other things I saw.  The house next door has a ton of peeling paint.  It is a bit of an eyesore.  I am thinking of this as a rental.  There is something appealing about the location -- I would describe it as maybe one of the less-great streets in an attractive zip code -- and just a couple blocks over the neighborhood looks lovely and well cared for.  

The back yard is fenced with once wooden board missing, there is a playset in the backyard.  There is a glass block shower window with one of the blocks cracked. (What makes one block get cracked?).

Anyway, I am extremely curious about it, although it is probably unlikely that I found a awesome deal that everyone else has passed over.  But…. you don't' know until you know, right?  

Let me know if you have any thoughts about these photos.  Thank you!!!  --Karen

Tagging @Dawn Anastasi -- not much info from a drive by but I'm still curious about the inside and getting the full story about this property. 

Nicole, thank you for continuing to organize Milwaukee meet ups for BP members.   I'm not sure about our weekend plans yet (might go camping), but if we are in town I will try to make it.  :) 

Hi Dawn!  Thanks so much for the quick reply.   I was just going to do a quick drive-by today as a first look on the way to a family event, but since time is flying by, I will have to drive by it later tonight around 6:00 p.m. - 6:30 p.m.  

But I was really planning on getting to see the inside.  Fun!   I would need a realtor and that would need to be tomorrow or Wednesday.  I'll PM you to see if something might work out.  It would be great to see you!  

Hi Everybody,

I have found a very intriguing property (so far) and plan to go see it.  If it is "the one", "the first one"…. or, if I have to look at 100 before I find the one, eventually I will have "the first one".

How long did it take you to learn how to do everything as a landlord?  

You bought the property -- how long did it take you to get through the deal, how did you set your closing date?  How long did it take for all the "buying parts"?

You made the property rent ready -- what did you do to it?  How long did your rehab take? 

You got organized and learned how to be a landlord -- you made a lease, got a lawyer, set your criteria, got some forms and made some rules and procedures and decided how you would manage (or hire out the management and interview and set up someone)

You marketed the property -- how much time and money and energy did you put into that?

I am curious about "what to expect", and I know every project is unique, but what kind of targets should I make for myself, if I were to decide to make an offer soon?

Thank you for any insights.  I'm excited and I would LOVE to read all of BP in the next 48 hours or so, but life is happening.  I've read a lot over the past year and will keep reading the articles and searching the forums for topics. 

Karen

This morning I am going to drive by the property and check out the neighborhood in greater detail.   I hope to see the inside of the property tomorrow, if possible, or Wednesday, worst case.  If it looks good, I think I want to make an offer quickly.  Wow!  Scary!  Exciting!  

What actions should I have on my to do list?   I am starting from scratch….  
What should I work on tonight (from at home on the internet) 

-- Call a bank on Monday to work on possible loan / HELOC? / similar?
-- Set up viewing time with realtor for ASAP.
-- Ask realtor for cap rate / comparables / rental prices
-- Bring flashlight, camera, binoculars (@Bill Jacobsen  - what do you use the binoculars for, specifically?),  pencil/notepad, maybe a tape measure?  maybe a friend? to the showing

@Hattie Dizmond, how long is an inspection period / option usually for?  Thanks! 

@Dawn Anastasi  -- if you are available, would you like to go see this property with me? 

(I PM'd you with the listing, let me know what you think, thanks!)  

I described myself as a total newbie, but that is not totally true.  I have been reading and getting familiar with buy and hold investing concepts over the past year, so there are a few things that I know to look for.  There is still a TON of things I don't know, and no practical experience yet, but…  I can do this!   I think I can, I think I can, I think I can…..    

Thanks for all the help! 

Hi Bill,

Thank you for the reply.  Questions:

1.  What do you mean by possible uses?  It is a single family home and so it would be either a single family rental, or it could be sold in some way to a buyer. 

2.  I will need to look at cap rate for sure.   I will need to read about cap rates, the concept is a little foggy in my head.

3.  So let's just pretend that my all-in cost with repairs is $45,000 (just a beginner's guess) and it can rent for $950/mo.  

4.  How much should I roughly budget for closing costs?  

Pause here for a second:
Ohmygosh the Bigger Pockets Rental Analysis Calculator is ***so cool!!!!!!****
I don't know if I am using it correctly.  I guesstimated some numbers.
$45,000 all-in price w/remodel (newbie guess), $950 rent, $2k closing costs, average cap rate 8% in my area (????no clue??), guessed ARV of $70,000 (but I plan to buy and hold). Taxes and insurance in from Zillow numbers.

The report that this tool generates is amazing!  It looks like **IF** my guesstimates are right, then the property would just make the 2% rule.  

What questions should I ask the real estate agent?  Thanks!

Karen

Jean, thank you also.  This property is a foreclosure.  I am not sure why it is listed cheaply; it seems there is a mix in the area (this is looking on Zillow).  There are definitely other properties that have been sold for inexpensive prices, and some properties that have higher values also.  

My investments to-date have been in the stock market, and that is my point of comparison for the returns.  Stocks are so easy compared to real estate, the transactions are easy and cheap! A rental should cash flow well to be worth the effort.  I want to get into real estate for cash flow and diversification. 

For ARV, is that what the house would be worth after it's fixed up if I were to turn around and sell it again like a flipper? I see on Zillow that some of the homes in the nearby area have also sold inexpensively. I would guess that there are definitely investors active in same general area. Some homes have higher values and the last sale price of this house was many times higher than what it is currently listed for.

Questions about making an offer -- how fast would you move if you determine that the property is a good investment?  In an offer, do you have to say how you will pay for it?  I could, in theory pay cash and show a brokerage statement as "proof of funds" to be speedy, or I could go talk to a banker about some kind of loan, which will probably require more paperwork / time to get together.

I am totally brand new and don't have any contractors ready to go. I would need to get to know some contractors that work with investors (read: affordable) and not the fancy contractors that advertise on the radio. I am a REIA member so there is potential to network and get things going rather quickly.

Thanks, so much for the reply, Hattie.  This will also be my first time working with the realtor, and it has been years since we purchased our own home, so I am totally out of practice with all things real estate.

I have a copy of J Scott's book here! (Actually I met him once at a REIA meeting also.) I will go over the book this weekend. Good idea to bring a camera, it will be very interesting to see the inside of this house.

I am planning to Buy and Hold, and the point is to make a good return.  I need to get clearer on goals and criteria.  My stated goal was to purchase and rent out one under $50k home and basically get started with learning and get some practice / experience and learn the whole business of land lording / buy and hold property investing. 

Hi BPers!

I found a very interesting property while I was goofing off on a realtor website / Zillow on Friday.  And it looks on the surface to have some great potential, so I would like to investigate this property for real, not just on a paper exercise.  I am hoping to drive by the house / neighborhood this weekend and go see it  with a realtor on Monday afternoon.  

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Exciting stuff!  But… how do I analyze the deal?  I have many questions!

1.  Right now, all I know are the listed price, property taxes and basic facts about the property.   I need to practice running calculators but it seems obvious that the numbers will work, the listed purchase price is very low and the rent would be quite good.  (assuming that rehab is not crazy nuts insane.)   

2.  There is only ONE photo on the real estate listing.  Could be a mess inside, but I have no idea.  I plan to go and see it.  What should I bring to view the property?  

First time nerves here!  What do I need to do to get prepared?   (I was going to start seriously looking at properties after the kids were back in school, and they are not back in school yet, but this property is very intriguing and looks like a must-see to me.) 

Thank you for any advice!  Karen