All Forum Posts by: Kay Lee

I'm there. See you all.

I'm very interested in this question as well. Monitoring this topic!

@Ryan Goldfarb Rental in the area for 5/2's ranges around $2,000-2,400 So it works with 1% rule which I see as absolute minimum.

I would list it with the realtor to sell it when it's done to find a buyer at exit. If it doesn't sell in 2-3 months, I can move in.

This wholesaler never dealt with financing in his 6 years of wholesaling. I tried to be creative with this guy, but simple cash deal is what he wants. So he's not likely care about small beginner fish like me who wants to finance. Maybe I can do a separate contract with the wholesaler that will trigger when the contract between the seller and the wholesaler is fulfilled?

Without reading/ understanding the zoning, it's difficult to say it can/ can't be converted to duplex. From what I read from above, it looks like 2000 sf lot size is required per dwelling. So 4000sf is needed, but only 3049 sf lot. You need to get a variance to convert it to duplex legally.

Just call the local building department, and ask them. They will give you a straight answer. Good luck.

Welcome to BP. I'm a newbie as well, but I am doing the similar stuffs right now.

If this is your first time, you can do it as your primary residence and go for FHA loan with as little as 3.5% down. AFAIK, 203k can be tacked onto the loan if you are the primary residence. According to my lender, there isn't much difference between 30 year fixed and ARM right now. If you are thinking about flipping within 2-3 months, the payment difference isn't that great (maybe $30-$40/ month).

Good luck.

Latest development. Just got off the phone with my lender.

The bank doesn't feel comfortable financing this deal because of assignment. The seller is selling the house to the wholesaler, and the wholesaler is assigning the contract to me. On the contract, my name is nowhere to be found. This worries the bank. From the bank's point of view, I am getting the financing to fund wholesaler's llc to purchase this house.

Obviously, if I had cash, this won't matter. Was anyone able to finance wholesale assignment deal like this?

Thanks @Eva Marin for a quick reply. I will definitely have to check the roof condition.

Forgot to mention about my exits.

Exit 1: Rehab and flip.

Exit 2: Lease it.

Exit 3: If it doesn't sell by end of April, I can move in since my current lease ends.

So assuming loan closes mid to end February, I have to worry about carrying cost for March and April. I can handle that.

Warning: It's long!!! But I want to give as much info as I can to get your honest opinion.

Since I joined BP nation, I've been looking hard to find my first deal, and I may have found one. Need your expert opinion.

Story: SFR in Lower Westchester Co., NY. Not the best neighborhood, but not war zone either. I found it on craigslist that wholesaler listed. The owner is an old lady from Bronx, and her daughter's family is living in it now. She bought it mid 2012 for $162k from a 94 yo lady whose parents were the original owner from 1900. Owner's daughter was going to rehab this, but after putting in new boiler, new gas line, cover original hardwood floor with cheap blue carpet, and hodge podge kitchen (with 3 different cabinets), she got tired and wants to get out. The wholesaler is assigning the contract.

Asking $135k cash. ARV $210k-$220k. Estimated rehab: $30k (remove carpet and refinish/ repair hardwood, paint exterior and interior, redo kitchen and bathrooms. Hope I don't need new roof.)

2,400 sf 5br/ 2ba built in 1900. Has lots of original details. 2 1/2 stories + basement + attached garage

Exterior: asphalt shingle roof was done in 2000. Siding is in good shape. (Do I need new roof?)

Main level - enclosed porch, living room, dining room, bathroom, and kitchen

2nd level - 3 bedrooms, bathroom,

Attic - sitting area, un-permitted kitchen, 2 bedrooms, office, and un-permitted bathroom. and lots of storage (I will take out the kitchen and bathroom and cap everything so it is compliant)

basement - new gas boiler, and water heater, unfinished but +9' ceiling height. Attached garage, but garage doors are blocked off, and being used as storage. Above the garage is the deck accessible from the kitchen.

I am doing FHA finance with 3.5% ($4,550) down. Rehab of $30k will be also financed via 203k.

If I apply 70% rule... 70% x ARV 210k = 147k. Minus $30k rehab puts me at $117k. Asking is $135k cash. I offered $120k financed. He countered $130k cash. I offered $130k financed. He accepted if I can close in 30 days.

Did I go too high? Honestly, I couldn't find any sfr comps sales past 6 months within 3/4 mile radius under $220k. (except one short sale at 60k) I want to be conservative at $210k. (with ARV of 220k, it works better obviously.)

The rehab can be done in 3-4 weeks. It will be around late March, early April when it's ready.

What do you think? Yay? Nay? Comments? Opinions?

Nice pic @Pete Nater

It was a great time. I met so many great people. Thank you @Darren Sager for putting this together. You seem kinda tired towards the end. Also thank @Brandon Turner for your Cobain house stories. :)

We should do this every now and then.

BTW, sausage and garlic pizza was the best.