All Forum Posts by: Michael Arrieta

My Apartment Investing course tells me to estimate rehab costs for the offers by asking the broker if there is a per door rehab cost especially for capital expenses. Rule of thumb apparently being $250/door. Then in due diligence phase get an inspector and contractor to draft proper costs. If they're different go renegotiate the price or get out of the contract. 

Is this a good suggestion for everyone out there? Makes me a bit uneasy to approach it this way

Thanks for the clarification

Hi folks, wondering if you all could help me piece this together.

I've never done a real estate investment deal before, but a friend of mine is selling her out-of-state rental property and I would really love to buy it for the cashflow. 

It's a good home out-of-state in Indiana that she's been renting out for $1100-$1200. She just listed it with her realtor asking $155,000 and owes about $100,000. She's selling it because she's been frustrated with her property manager not sending her the rent payments. It's been a headache for her and wants to get rid of it, though has equity.

I don't know that I'd qualify for a mortgage myself since I've only been in my job for a year. I don't have any debt but as a Loan Officer I'm only earning a very small base salary. I also don't have the 20% down payment. 

The property is in good condition and built in 2003. It just needs some new carpet and a better property manager. 

Assuming she agrees - does a Subject-To make sense in this scenario? Lease/Option? Or do I need to buy it outright with some sort of private financing/borrowing credit, etc. Any other ideas on how I could pick up the deal?

Thanks in advance

Thank you for your response Alissa. I didn't mention it in the question but I'm looking at an out-of-state property. I think I get the gist though.

So the goal is to get the list of recently sold properties and have different designations of average sq ft for 3 bedrooms, for 4 bedrooms, average for similar lot size, average for homes built in 2003, etc. Is that correct?

How do you find the cost per square foot average in an area?

Thanks in advance

Hi Jasmine, I was off-island for this meetup but would like to come to a future one. Is there a plan for another one anytime soon?

Thank you Kim sorry just saw your response now. If I'm waiting till auction then I'm competing w other investors and have to bring a 10% down in cashiers check if not all cash. Is there any other way to find out the listings at an auction besides newspapers these days?

Citi Mortgage is the lender. Thanks for the tip on the attorney. I can ask the association for that contact although I'm not confident they'll divulge the information. 

Is there any step to be taken before that? I spoke to the Association and they said to talk to the lender.

Appreciate the response Wayne

Hi all,

I'm currently leasing a unit that has been in pre-foreclosure for a year now. The association has the quitclaim deed but it's still subject to the lenders foreclosure. I reached out to a Title Officer friend of mine and she gave me the name of the lender, the mortgage number, and the assignment of mortgage number.

I want to get in touch with the lender to see if they'd entertain a purchase prior to heading to the auction. Since I'm the tenant and it'd get the property off their books I'm hoping I have some advantage. 

What do I do now to get in touch with them?