All Forum Posts by: Matt Lennander

*UPDATE*

Saw the house today. Definitely needs updating/rehab. I found out that the neighbor won't sell or allow the rest of the lot for sale to be subdivided because it would require him to move or use a portion of his property for a shared driveway to where other houses would be built if the lot were to be subdivided. 

The owner said the value is in the land, which I agree with. The house is no longer a duplex and hasn't been for quite some time. The city won't allow zoning for multi-family so it looks like someone would have to buy the house + lot, rehab or bulldoze and rebuild, figure out a way to get the neighbor to agree to a subdivision of the lot or move, and then build on or sell the land. 

This is way above my pay grade, but it would be fun to see how it all plays out. Thankfully my mentor had time to swing by and check the place out and ask all the important questions, but had to run to meetings so we haven't had time to discuss. I obviously don't think it's something I can move forward on with my lack of experience and funds, but I had to give it a show and at least learn a thing or two! Thanks to everyone who had questions/input!

-Matt

@Marc Jolicoeur those are some pretty epic ideas! Thanks for the info on condo's/legal fees too. I like the idea of bulldozing and rebuilding depending on sale price. The issue being that unless I magically meet a bunch of investors soon, I'll have to purchase using my FHA and live in the property for a year while I rehab. Might be posting in the Marketplace soon!

I got that info from the county website, as well as collectively from trulia, zillow, redfin, propertyshark, etc. which I agree, I don't trust it THAT much but it's a start. It confused me too. It's a 4 bedroom (2 each side I'm guessing) but most of the sites listed 1.5 bath. Not sure how that works but it's either a full or half bath on one side. I'm honestly not expecting much because it did say it needs major rehab but I'm looking at it tomorrow and will take pictures.

I live right across the street from this property so I know the area very well. I'm also very familiar with the neighborhoods in Saint Paul and how they can vary from street to street. I've lived in multiple locations in Saint Paul but this is actually Roseville bordering Minneapolis. So closer to downtown MPLS than St. Paul. Sorry if that was confusing. Thanks for joining the discussion @Dan B.!

Not at all! I appreciate the feedback. Here's what I found after a little research:

Duplex

4 bed/1.5 bath

Comps: $160k - $285k (at least what I can tell from zillow/trulia)

Houses on the same street (in much nicer condition) are estimated on homes.com for $236k-$436k. The house on the corner is the really nice one with the highest price. The other ones are average but their outside appearance is nicer and the build is newer. 

I think the ARV could easily be $250k+ but still have yet to determine what the rehab would cost. Touring the property is my next step.

Because I'm looking at an FHA, I would need to occupy the property for a year so this would be a Buy and Hold. Easy area to get renters. I'm working on a spreadsheet for comps and costs. Are comps always evaluated at homes being in excellent condition with little to no work needed?

Thanks @Byron Bohlsen and @Michael Seeker! I agree this is not something for a newbie to tackle. I know it's been sitting there for a few months with the FSBO sign in the yard so I figured I would inquire. While I don't think it's something for me to tackle on my own, I think it could be a great learning experience (if done right) and I'm too eager not to try! I'll do a little more homework and give an update when I have one.

Hey All,

So I was out for a run the other day when I passed a house FSBO that I've passed probably more then a dozen times but finally decided to call. It's an estate sale, and the seller was very short with me on the phone but here's the info he sent me:

Estate sale - House + lot with potential to be subdivided (could profit from subdividing and selling the land)

Looks like a single family home, I'd guess 2-3 beds/1-2 bath. 

1.33 Acres (57, 935 Sq Ft)

Asking $250k

The "county listed it at $238k"

Conventional financing only.

Description on flyer: "beautiful lot with large trees, quiet neighborhood, newer larger homes in the area. House built in 1940, 1,318 sq ft living area. Detached garage. Lot size 57,935 sq ft with potential to be subdivided. House needs major rehabilitation work." 

The outside of the house does look pretty rough but the property looks well maintained. How big is a typical lot size?

I live right across the street in some apartments and the area is little to no crime, convenient access to freeways and major roads. I love my area and want to stay close. He didn't have pictures of inside the house and didn't answer any of the questions I asked, just sent the flyer. I'm totally green and haven't bought a property yet but $238k sounds really high for a house that needs major rehab even with the extra land, although it's prime area being very close to downtown. There are 1-2 newer houses right next door, other than that there aren't many new houses in the area.

Can anyone chime in here and tell me what you think it's worth based on what little info I have or what "major rehab" costs range from? I'd guess $50k on up... Maybe someone in the area would be interested in partnering/investing? I'm still learning, and would love to have a partner in a deal to show me the ropes. Thanks in advance for any insight you can provide!

Hey Sawyer! That's actually what I'm really hoping to do for my first property. Trying to figure out financing right now as I don't qualify for conventional or FHA at the moment. I'd like to purchase this year and not have to wait until tax season next year.

@Account Closed that's a great tip! I'm currently reading the UBG and I love the podcasts. I might try speeding them up, though I can barely keep up as is :-)

Thanks also for the welcome @Rachelle Rodavia what a cool name!

Hey guys,

Former full-time musician turned corporate sucker turned part-time amateur real estate investor. I've been looking in to REI for about three years after reading Rich Dad Poor Dad. After investing in my knowledge and buying a few more books, I finally have some money saved up for an FHA or 3% Conventional Loan. Unfortunately I also own my own small business as a musician and my write-offs essentially screwed me last year for financing. The joys of getting started :-)

They're just bumps in the road, but I've been at it strong for a couple months now and am making progress. Love the podcasts and excited to learn from all the awesome people on BP! If you're in the upper midwest or are a musician, I would love to connect with you. I'm all about helping others out and paying it forward ...and don't worry I'll get a profile picture up soon!

-Matt

Looks like a great triplex! This is what I'm hoping to do for my first purchase as well. It's great having long term tenants already in place. I had a duplex lined up and the LT tenants had been there 7 years but something didn't seem right when I met them. Unfortunately my financing didn't come through either, but would have been a great intro price and a solid start. Congrats on taking action!