All Forum Posts by: Mustafa Abdulali

@Kyle Scholnick

I live in Naples, FL and face the exact same issue you do. The rental numbers on SFR come closer to .5% versus 1%. However the appreciation in this area can be anywhere from 10-16% depending on location (numbers from an older newspaper article). I've recently changed my strategy and am looking for a SFR, that needs some work, in order to live in and then sell in 2 years so I can use those funds to purchase more cash flowing properties elsewhere. When doing your analysis make sure you take into account any difference in your personal cash flow. For example, you may pay close to market for a home (ideally you would not) but if the subsequent housing expense (P&I, PMI, maintenance, insurance, taxes, etc) are below your current housing expenses then you can bank the difference and put it towards your next property. Also, make sure you run the numbers as if you were going to rent it out so you know what Plan B may cost you.

Good luck!

@Brett Snodgrass

 Thanks for the information!  I never thought about the lender aspect.  I just assumed it would be similar to a real estate agent and that the funds would be distributed at closing.  If the deal goes through (I'm having second thoughts) I'll inform my lender.

@Ryan D.

Thanks for the info!  If he comes back with my target price I'll ask to see his contract if we go forward.  

I'm in SWFL but I not looking specifically for properties only in FL.  Since SF homes are tough to find I was wondering if anyone had done something creative with an industrial or commercial property (assuming zoning allowed it).

I'm curious if anyone would be willing to share their story about a creative ways to use non-mainstream properties.  For example, taking an old hotel and making it into apartments or an old warehouse and turning into artist lofts (No, I haven't done any of those things).  I'm interested in how you found the property, what got you thinking it could be used for something besides its original design and if it turned it into a money maker.

Naples is a weird market.  Very few deals where the 1% rule even applies.  Most of the new construction is being bought by mid-westerners who are able to sell their homes and are buying brand new ones with cash.

Kissimee is quite nice.  I was up in the NY/NJ/PA area for the last 7 years and I'm happy to be back in Florida!

Thanks @Mhamed Channaj!  I'm hoping to check out the house tomorrow.  I'm okay with the assignment amount but the sale price may be a bit high.  Do wholesalers usually have wiggle room on the price?  I'm guessing he put in some buffer between the contract amount and what he is trying sell it to me for.

I came across an ad that a wholesaler put up for a 3/2 in my target area.  He originally wanted an all cash deal but I told him I could not do that but would be willing to finance (I'm already pre-approved).  This property would be my primary residence while I fixed it up with an intent to sell in 2 years.  He told me he would be willing to assign the contract to me for $10K with a sale price of $300K for a total sale of $310K so that I could get conventional financing.  Could someone point me to or explain to me what the "assign a contract" means?  I've never bought from a wholesaler before so I could use some guidance.

@Rich Homer

 Thanks Rich I'll keep that in mind!  The numbers didn't work out with this deal so I didn't move forward.