All Forum Posts by: Marjorie Florestal

thank you @Phillip Dwyer

Hello @Josue Rodriguez and welcome to BP! I am working on my 1st deal and found this site just a few weeks ago. It's been invaluable! I'm sure you will find lots of information and insight on your own journey. Good luck.

BTW, I spent 5 years in DC and really enjoyed the area. Still miss my friends.

Dear all,

I'm closing in on my first deal! But right now, I'm stuck on establishing the ARV. I would love your help in deciding whether I should just go ahead and get a professional appraisal? This is a cash deal so I don't necessarily "need" one.

I've had my agent pull the comps, and I've read some great information on this site on estimating ARV, but I'm not confident in the number I come up with (my agent says it's"good value" but that doesn't help me as a newbie investor to verify the numbers).

There are some problems with the comps as far as I can see: The house is a manufactured home (on a PRIVATE lot of 10,800 sq. ft, which comes with the sale) but I can't find comps that take that into account. It is a small town/unique waterfront area and my house is not directly on the water, while the other comps ARE. My house is an REO while the other comps look to be regular sales.

On the plus side, my house is elevated and seems to meet flood zone requirements (although I'm waiting to get the elevation certificate to be sure) while the comps are flat and were likely "grandfathered" in when new regulations were passed. So, the comps haven't been updated because any major reno would require them to meet code, while my house is a "newer" home built in 2003 with some upgrades.

I am a lawyer and a first time investor, which means I approach this deal VERY carefully. Recognizing that my training pushes me to think worst-case, I'm trying to keep things in perspective. I would love your thoughts on a few questions:

(1) Should I go ahead and get an appraisal? This is a cash deal so no bank is forcing me to do it. House listed for 179,500k but bank agreed to 163k. If I'm correct, ARV is between 200 to 215k. I'm getting someone out to help me estimate repairs, but based on my analysis pre-home-inspection I'd think 5k.

(2) If I get an appraisal, what's the best way to find and vet an appraiser? This is a small town and unique community as well as manufactured home, and I don't think every appraiser would necessarily have the knowledge.

I could probably use someone my agent recommends but I'd feel better to find someone on my own.

Thanks for your help!

Thanks for the ideas @Steven J.. I have comps that are all over the place, which is really holding me back. There are no other manufactured homes - at least not in the comps pile - so it feels like the comps aren't truly comparable. I understand some lenders have issues, but this isn't a mobile home on wheels. Its on a foundation, etc. Plus, if i wanted to sell in future I could do owner financing.

Because this is a small island community, you have 300k homes right next to $150k ones depending on whether you have water access, which is another complication. This house doesn't have water views but is literally around the corner from the marina. Surely a selling point?

I feel like I've officially entered analysis paralysis! This isn't yes, but not a no either.

Oh, and I will add researching special problems of manufactured homes to the list!

Welcome Frank, I only joined BP a few weeks ago but got such a warm welcome that I appreciate the opportunity to pay it forward. I'm in the East Bay, which thankfully is a bit less crazy market. I've bought my own homes before, but it is a totally new game buying investment property. I'm poised to do my first deal -- a SFH. All the best in your efforts

Good idea. I have a handy person and will ask if he is willing. Thanks @Chris Music

thanks for the good questions, I will find answers @Chuck W.

@Chuck W. it's 2004, which is good because it meets higher flood zone requirements. I potentially have handyman lined up for the smaller things, but if we fix up basement I want it up to code or defeats the purpose.

@Chuck W. the comps look to be $200 - $240k - there is quite a range because house is on a small island and the houses range from big and nice to small and trashy trashy right next to each other. This house is on permanent foundation/private 10k lot. It is REO and hasn't moved for several months, which makes me suspicious. I understand if its own permanent foundation, there are lenders waiting to lend so why no movement? No home inspection yet.

Hi everyone, I'm contemplating my first deal and my head is still swimming with numbers. I would appreciate perspective

My first concern is this is a manufactured home (on 10k sq ft lot), and my research indicates that is just more difficult to resell. My strategy is buy and hold, but its impossible to ignore resale potential

It's a REO at $180 k 3 bed 2 bath SFH with semi-finished basement. I would put down most of it in cash with a 60k loan for repairs. I'm not yet able to calculate repair costs with accuracy (still reading on that!) but it has been partially renovated. Would need one bathroom redone and both need new countertops, kitchen needs countertops, basement needs floors and some drywall. I'm purely guessing about 10-12k in repairs (roof and pipes seem fine). There is possibility of turning basement into a rental but still researching that -- would need bathroom and kitchenette, which obviously would raise repair costs.

I'd live in it for 1-2 years before renting out. Rents are about 1000 to 1300.

What am I missing?