All Forum Posts by: Account Closed

I'm finishing up a flip I purchased off auction.com A few notes: 1) the two most important things in my eyes are a) make sure you have figured the ARV and your MAO BEFORE you get to bidding and b) stick to your MAO 2) sometimes the site will auto bid against you just to raise the price. Stick to you MAO bc on some occasions you may get outbid but then they will call you and miraculously the "other higher bidder" walked away and you will get the house at your bid. 3) be prepared to wait on the title. On this flip after the auction I wasn't given the clear title and keys until 6 weeks after the auction ended. This isn't always the case, but there are times that the deed recording takes time on their end. From what I've read it's bc they will auction a house without holding the deed. This isn't to deter you, this is going to be a home run flip for me. Just some things to consider.

So let's say you have 1 property and use your 8%, and the rent is $1k. Thats $80/month. Let's say you put that away each month and then at the end of a 1 year lease, you've marketed the property and have an immediate fill for another 1 year lease. And then you start putting $80/month in again. Would you just keep the $960 that you saved from year one and pocket it as income since you had an immediate fill and started saving the $80/month again from the new lease rent payments? Even if you had multiple properties, say 5 in this case, all renting for $1k, and saving the same 8% per rental, you come out with the same numbers and same scenario. Thanks for the response

If you figure a 2 month vacancy rate and 12% monthly repair expense, do you actually set aside those amounts and save them for future use? I have had a rental for 6 years that has never been vacant. I can understand saving 12% a month for repairs to have reserves for large items, but if you have a property that isn't struggling with vacancy much do you just pocket that money? That can make a big difference in the numbers as far as cash flow Thanks Patrick

Haha yeah, I know this is a business site, but I couldn't resist

Do you even lift brah?

Yeah, it looks like it's still in the guy's name, still has last sale in 2011. The last sale was for $130k, these are small starter cookie cutters built in the early 2000, ARV would be closer to $120s. I wouldn't be offering anything over $80k though. If he hasn't lost the house to the bank, and still owes around let's say $120k, would he even be able to accept anything below his mortgage balance anyway? I understand short sales but I assumed those were with banks only, not homeowners Thanks again

I noticed an overgrown house down the street from a current rental I have, so I checked it out on Zillow and it's listed as a preforclosure, but also said auction and listed March 2016 as the auction. How can I find out if the property has been sold yet? Is it possible that I still have a chance to contact the owner and ask if he wants to sell? Thanks Patrick

Check the county tax assessor web site, enter the address and it should tell you owner info. If you can't find a telephone number, send a letter to the owner address listed. You may have to send one letter per month for a bit