All Forum Posts by: Michael Dunn

just had a situation come up on a Property , that I'm Not 100% sure as to how this transaction will work / who to talk to, so that I can pay in Cash for this Property ASAP

The IRS owns the house via a Tax Lien ,& is owed $55,000 on this house. What are the Options ??

My main question is ....... Will they likely except an amount LESS THAN the $55,000 ?

Will they take say , 75% of the $55,000 ..... so about $41,000 ?

50% of the $55,000 ....... so $27,500 ?

No one has been in this house for over a year now , and it is most definitely a distressed property

I'm just curious , if the IRS just wants this Property Sold and off their books, and they'll be willing to make a deal on it

OR

if they HAVE TO sell it / take a minimum Percent of what is Owed for it ?

It will be paid all in once and all in cash of course ........ Is this an Incentive for them to give you one Heck of a deal on a Property as is this situation ?

Lastly please,

What Department of the City/County do I need to call , as to find out how / who I need to pay and get the correct paperwork and documents drawn up , for a transaction such as this ..... The IRS " owning " the property via a Tax Lien ?

Thank you for any Information and recommendations

 Wayne Brooks ,

The current Heir / owner now of this property told me that I guess last they heard, was that the IRS was in Possession of the Property , and that the amount due was $55,000 

Do you think I'll be ab and if so , who do I need to talk to 
Or 

Does the Heir now of the property, get to make the decision on how much they are willing to take for it ?

I was under the Impression that ...... When the IRS takes possession of a house, that they want to unload the property as fast as they can, and get something for it , but that they will take substantialy less than what is owed ?

Thank you again for your help 

The IRS owns the house via a Tax Lien ,& is owed $55,000 on this house. What are the Options ??

My main question is ....... Will they likely except an amount LESS THAN the $55,000 ?

Will they take say , 75% of the $55,000 ..... so about $41,000 ?

50% of the $55,000 ....... so $27,500 ?

No one has been in this house for over a year now , and it is most definitely a distressed property

I'm just curious , if the IRS just wants this Property Sold and off their books, and they'll be willing to make a deal on it

OR

if they HAVE TO sell it / take a minimum Percent of what is Owed for it ?

It will be paid all in once and all in cash of course ........ Is this an Incentive for them to give you one Heck of a deal on a Property as is this situation ?

Lastly please,

What Department of the City/County do I need to call , as to find out how / who I need to pay and get the correct paperwork and documents drawn up , for a transaction such as this ..... The IRS " owning " the property via a Tax Lien ?

Thank you for any Information and recommendations 

If I Refi. out of my current FHA loan, and Refi. this loan into a VA loan , at say 90% - 95% LTV ........ when would I be able to use my VA loan again ?

Would I HAVE TO either Sell the property or Refi. out of the VA loan and into a Conv. loan ?

Or would It all depend on how much Entitlement I have Left , after. doing the Refinance into it ? ( This assumes a $120,000 Refinance amount / Property ) 

Thank you for the help 

John Walker , 

Thank you so much 

Very great advice.  I appreciate you sharing 

Julia Blythe ,

Thank you so much for all of the Advice and tips, very informative.

A few things I'd like to ask/run by you please......

1. To get Rent in the $1,300 range ....... What Price Rage of the Property ( Purchase Price ) would I be looking at ? Stick to looking at Properties in the $95,000 - $120,000 rage ( This assumes the ARV ) ?

2. Great advice on the Bed/Bath being that 2/2 is the minimum .  I have heard too, that alot of the times it's roommates that move/Rent a house in Midtown , and therefore having at least 2 bathrooms is ideal 

3. Definitely looking to put a Fence up , no matter what property I get. 

4. The Street I decide to Buy on / Rent out later is very Key s you mentioned.... It really is all about Location Location when it comes to buying in the Midtown area.

Given that it is , Here is a List of Streets I am currently Looking to see if any Properties are for sell on them. Of the ones listed, are there any that You Strongly recommend I DON'T buy on , and any of them that you Strongly recommend i DO buy on ?

They are ............   Linden Ave. , Carr, Ave. , Harbert Ave. , Cowden Ave. , Hubert Ave. , N. Willet St. , N. Avalon , N. Watkins , Tutwiler , Washington Ave. , Court Ave. , Madison Ave. , N. Evergreen 

Midtown ( Madison and Copper St. ) are definitely the " It " places right now , especially for the younger Millenials to hang out and wanting to live .

So I am trying to position myself , by Purchasing in a Desired area NOW , so that I can easily Rent out the Property at a nice Monthly Rental Rate ( $1,100 - $1,300 ) 

I would even be willing to purchase a Duplex or Multi-Family residence ...... All of course Depends on the Location of the Property  :)

Thank you again for all of your time and help - Michael 

Alex Craig,

Thank you for your reply 

Is that near the Madison Area near Madison / Cooper Young ?

It seems that houses in that area are highly sought after, as a lot of Millenials / young professionals want to move in that area, to be near the robust area that is Madison and Cooper area 

Would a 2 bed 2 bath in these areas fetch  $1,300 or so a month in rent ?

My Budget is $130,000 on the high side of what I can afford, so I'm trying to find Properties in good areas around the $100,000 - $110,000 side, that can still fetch nice Rental Income once I decide to move and rent out my property

Thank you for your help and advice 

Dean Letfus , 

Thank you for your reply and advice

Are there any particular Streets that you recommend I look at , that are in the  38117, 38111 and 38122 Areas ? 

And also please, what particular Streets do you recommend I look for and check for Properties for sale in the Copper Young and Midtown areas ?

I know Memphis and the surrounding Areas quite well , just not to sure about Particular Streets / niche neighborhoods 

Yeah, I'm going to add 38119 and 38120 to my search areas.  May be hard to find a house under $130,000 , but I may be able to get one that's Foreclosed and needs some work done 

Thanks again for your help and advice 

I have been scanning through my local Market this evening , and am wondering what signs and specifics , help determine which Properties make for good Flips vs those that are better off just being Rentals .

Alot of these houses that I could purchase with Cash are not in the best of areas, since my Cash Budget is only around $90,000
So for me to be able to purchase a property for say $50 - $60,000 and put maybe $10,000 - $15,000 in it or repairs and upgrading , this leaves me with having to purchase properties in areas that aren't the safest.

But my thinking is ....... Even Properties that sell in say the $75,000 - $90,000 range ( ARV ) , someone has to buy properties n these areas. So if the numbers work, and he price is right ( my All-In costs ) vs the ARV and their's Immediate Equity gained once I sell the property, then why not do it ?

Deals come up all the time where I'm from, via Foreclosures, Short Sales, etc. via Properties selling for $50,00 - $60,000 .
If I get n accurate Estimate that the ARV will be say $80,000 - $85,000 , and Im All-In the property for $65,000 ..... then would it make sense to do the deal ?

I guess it depends on how many properties have sold in that area/neighborhood in the last 60 days and for what prices those properties sold for..

I just don't want to get a Property in a not-so great ( But NOT terrible area ) , with the sole intention being to sell it , and when I go to put it up for sell...... I have a hard time selling it , and it sits on the Market for months on end, and I end up eating the Bill.

I understand that I can Rent it out , but I'm using Private $ , so the Backer will of course won't their$ back + the $ we agree upon once it sells.

But if I can't sell it , then i'm stuck

Any and all insight , tips and advice is much appreciated

Curt Davis ,

Are there any other Areas ( Neighborhoods  ) / Zip Codes that you recommend I look at ?

38117 and some areas in the 38111 and 38112 seem promising ?

And what Zipcode(s) in Cordova would you recommend ........ Both  38016 and 38018  ?

Also , I want to make sure I move somewhere in the Memphis or surrounding area, that is likely to sustain rising Property Values, along with Steady .... $1,100 - $1,300  Rent ranges 

Also maybe Lakeland as well ?

Thanks so much for your help