All Forum Posts by: Account Closed

@Greg Downey.  How much is required down?

I would love to do these but my day job interferes. Will these be recorded?

Only difference in expenses that I know of is more work for me washing sheets after each visit and any cleaning for the AirBNB.  The per day charge already includes the fee to use AirBNB app.

Bank owned.  Cash only is what realtor told me, no other options. 

 I am seeing this more and more around here.  They will drop the price 15k and say cash only for houses that would not pass inspections.

 Great idea, but I dont know any private lenders who do 100%.  Many say they do, but it is reimbursement at closing which doesn't help.  Do you know any?

What other numbers you need?

Here is your opportunity to show your brains and creative business strategies.  Let's have some fun, and see who came come up with the best idea for financing this deal.  Dazzle me with your brilliance or baffle me with your nonsense, it's your choice.

Scenario: SFH in Canton, Ohio priced at $68,900 cash purchase only. Auditor site values at $112,000 in 2017. Tudor style home, 3 bedroom, 6 car attached garage. Large living room. Radiant heat, central air, beautiful woodwork throughout the home. Remodeled kitchen with custom cabinetry. Main floor and bedrooms only need new paint, all floors on main and 2nd floor are solid hard wood and in excellent condition. Exterior is brick. 1859 sq. Ft. All windows are in great condition, roof and mechanicals appear to be fairly new and in good condition. Lot size is 7,957 sq. feet - small with easy maintenance. Security system, paved driveway. Public water/sewer.

Main Floor and 2nd floor have no odor, no mold.  Basement has mold and STRONG mildew odor.  Used to be carpeted with bar in basement, carpet was removed.  Woodwork shows signs of water damage and green mold.  It appears a pipe on the ceiling for the heating system has frozen and broken.  Ohio winters can be brutal.

Projected Repair Cost - $10,000

Home is 5 minutes from a major private university, and 5 minutes from a major seasonal tourist attraction.  House sits right by express way which leads to the tourist attraction.  

Strategy:  $550 room rental for 3 students for 9 months. Fully furnished including appliances and utilities.  $85 per day Air BNB during summer tourist season.

Bank wants cash offers but you only have $5k due to another deal you have in progress.

RULES:  You have no family or friends to invest, you only have your brain and your creativity and $5k cash.  Hard money lenders want 20% down.  How do you buy this house cash before someone else sees the opportunity that you see?   What would you do??    Would you walk away, or do you want to play? 

READY...SET...GO!

@Kendra Levy

I would not go by the realtor's appraisal, I would get my own.  I don't know how well you know the realtor, but I have seen many appraisals inflated to make a sale.  It may be appraised on the building itself, but the type of business it currently has is what would concern me more.

Have you looked into if there are any state requirements or state inspections, stuff like that?  This seems like there would have to be some kind of management on board that would be medical/care focused since there are elderly/disabled people there.   It doesn't seem like your typical multifamily situation, so maybe that's where the numbers game comes in?  Is this assisted living?  If so, you have to have staff to take care of the people, and that could add a big overhead.

I don't know anything about a boarding home for elderly folks, but I would think there would have to be some mandatory regulations you would have to meet; the building might not be up to the regulations.  I can't imagine 1 full bathroom for 13 residences as being enough.   I would speak to someone who really knows this niche and dig into the requirements, if you haven't already.  I think this goes a lot further than just the numbers if you plan on keeping it the same thing it is now.  

I could be way off, just my two cents based on what you have above; good luck!

Septic/Sewer?  

This house is so cute!  I looked it over and if I were looking for a one bedroom, I would definitely scoop it up, I think it would cash flow nicely.  I apologize for not noticing it was a one bedroom when I inquired.  Nice job on the rehab!

Please send me details to [email protected]