All Forum Posts by: Lilly Fang

I would like to offer $380k for a house listed at 465k and just chatted with the listing agent. Basically, the listing agent agreed that the house's condition is not worth the listing price, but this house has a 380k reverse mortgage and the seller is in a care home already. She said the house probably will go into foreclosure. The house has a solar power purchase agreement that the listing agent said something about costs 27k to buy out, but I said usually PPA is just a monthly payment for purchasing the solar, unless you want to buy out the solar panel, and she had no idea. I told her my price is $380K, but she said the seller needed 420K to break even, or the seller just let it go into foreclosure. Should I raise my price to 400k? or buy pre-foreclosure or foreclosure? (assume 380k will get it)

sorry duplicate post

 Yes, that sounds right too. I will ask her to see if she would just loan me the money for better than bank interest.

In our area, most of the fix uppers are cash only, (usually 300k to 400k) and needs more cash to renovate. I only have about 200k cash to spend comfortably and don't want to take a hard money loan. One of my close friends would like to team up with me. However, she is 2 hours away from our targeted area where I live. Basically, I will do all the work (research, look at houses, hire people to do the renovation, apply permits, etc), and she will just contribute some cash (probably 50-60%). How do we decide the share? What's a fair formula?

Hi Noah, what you are doing is amazing! I am super impressed. I am a new real estate investor in Sacramento. I am curious about what the properties in Oak Park do and what the clienteles are. I like downtown and midtown, but Oak Park is always the area that I will avoid. I was thinking about midterm rental by UCD med center, but the Elmhurst area is too expensive, and Oak Park is too dangerous in my mind.

two deals to see which one to go: all will be 30% down, 6.25% interest, but two different areas in the same city.
1. 1957 SFH 3b1.5bath in a B neighborhood, 330k purchase price, renovation budget 30k (floor, paint, AC, kitchen cabinet paint), target tenant is a working-class family with kids (right next to an elementary and middle school), rent about 2200-2300.

2. 1940 SFH 3b2bath with good bone, 480k asking price, on the market for 90 days already, the targeted purchase price 440K, renovation budget 50k. The location is right next to a teaching hospital, basically on the campus of that hospital, can also build 1 or 2 ADU. SFH in this area usually sell for 600K+, but there is another one listed at 525k nearby with older interior. It will work out if I can rent the house furnished to travel nurses or medical residents (for example, 1000-1200 a room). Neighbor house Zillow estimate 1.1 million. I don't think it's a neighborhood for family since no school nearby. It's more of an old established neighborhood. I am confident to do a flip in the current market. Maybe I can, but I have to prepare to hold this house.

I think potentially house 2 will have a bigger profit in 5-10 years. Question is how I can find ways to advertise the house to hospital travel nurses or residents? Do they like to live so close to the hospital? Or they would drive a little to get an apartment?

another question how hard can we bargain for flix uppers that's on the market for a while? I was following a house listed at 399k and found it was sold at 320k then flipped now listed at 495k. Is that normal to just go 20% off low ball for a fix upper?

Thank you!!

Thank you for all the advice. The lease does not mention pest control. (learned something, will add this next time). I looked at the pictures they sent: 2 spiders in the garage, 1 earwig in the kitchen. They always find something to repair after the annual rent increase. We plan to get some spider spray and ant baits to them, and if there is a wasp problem, we will take care of it.

The tenant reported that they have recently noticed an increase in bugs and spiders inside the house and wasps in the front yard. They got scared that the kids will be bitten by spiders. They would like to have a pest control service which costs $40/month, and asking whether we (the landlord) would cover that cost. They have lived there for 4 years, and this is the first time they reported this. We are in California. I checked the law says landlord is responsible for pest control to keep the house livable.But our house has no pest problem before and not sure if this is due to their own negligence or our house. How should I proceed this?

any thoughts on the new houses North of Toyota plant? I saw the rent goes about $1700-1900, a new house is about $270-300k.