All Forum Posts by: Mike B.

These replies have been very helpful. I think that reading the article "JScott's guide to estimating ARV" (which is extremely valuable to anyone starting out in REI, IMO) along with studying the appraisal process will really make analyzing deals easy for me. Thanks again!

I'm currently looking to purchase my first home as my primary residence. I've been looking at single family homes in the Chicago suburbs, mostly 3 bed/1 bath ranches. Most of these are beat up REO's that are selling for $40K - $80K and have an ARV around $80K -$140K.

I'm struggling to figure out how to estimate the ARV. I'm not sure if I should pick 3 or 4 comps that are close to being exactly the same, or if I should pick like 10 or more comps that are similar and try to adjust the values for the differences in the homes.

I just don't understand how much certain features are worth. For example, I'm looking at a 3bd/1.5ba ranch right now with a 2 car detached garage. There are a lot of comps that are 3bd/1ba with a 1 car attached garage. Can I use these, or are they too different? I have no idea how much to adjust the price of mine because of the extra half bath and the garage differences. Also, if I find a 3bd/1ba ranch with a full basement, can I use a 3bd/1ba ranch without a basement as a comp? If yes, how much is the basement worth?

I have no idea how much a fireplace is worth, brick as opposed to siding, 1 car garage vs. 2 car garage, etc. And if I find a home that is 1,000 sq. ft., can I use a house that's 1,100 sq ft as a comp? 1,200?

Sorry for making yet another thread about comps. I couldn't find an "official dumb questions thread" to post this :) Thanks very much for any advice.

Obama/Romneycare was implemented in Mass. 7 years ago. It's working much better than our current system in the rest of the US. They like it.

I understand what you're saying, but the verdict is in. If you look at the facts, America has passed yet another law that will help the less fortunate. If Americans were as discompassionate as you say, then Darwinism would be the law of the land, right? We wouldn't have elected the guy who campaigned on universal healthcare, right? Wouldn't we have elected someone who supported letting the weakest among us suffer until death?

And as far as everyone having a shot, I agree that what you say is true. But you have to put yourself in the shoes of the people that aren't as smart as you to understand what I'm trying to say. If someone is too dumb to realize that they have a shot at happiness, then it might as well be the same as having no shot at all. I hope that makes sense. I'm sorry I'm failing to express my point articulately.

Because Americans are compassionate people when it comes to the health of other Americans?

Do you really think that people eat fast food for 55 years because they know they can get a quadruple bypass for free?

And why are you implying that people that require healthcare are abusing themselves? Seems a little presumptuous to me.

Sometimes people are just born with bad genetics. Some people are dumb and can't feed themselves properly. But it's important to understand that in many cases they were born that way through no fault of their own. Most people understand that and want to take care of the less fortunate.

There's no need to try to predict the outcome of Obamacare. Fact is, Obamacare has already been implemented in Massachusetts for years (since 2005 if I'm not mistaken) thanks to Mitt Romney, and a large majority of the people in the state support it.

Obamacare is far from perfect, but when it's implemented Americans will like it, and ultimately it will put us closer to getting single payer like every other industrialized nation in the world already has.

Hey Mike, thanks for the welcome and helping with my questions. I'm looking in Cook, Dupage, and Kane counties.

That property sold yesterday. I forgot to say I wasn't going to go higher than $50K for it. And before I meant it was a 2bed/1ba townhome unit.

I'll be sure to check out those sites, thanks!

I think a lot of it depends on a few factors. Do you enjoy doing that kind of work, or would you rather spend your time finding deals? Do you know a good handyman with reasonable prices, or will you have to find one, etc.?

If your ultimate goal is to maximize profits, you'll have to do some rough estimations of how much your time is worth to find your answer. But for some people it's worth it to lose out on a marginal amount of long term profit to be able to have more variety in their work.

Hi everyone,

I probably should've browsed the forums a little more before introducing myself, but I have zero knowledge about real estate and I'm experiencing information overload trying to find answers to my questions. I've been reading BP for a few hours and it seems like there is a ton of great information here as well as a lot of friendly and helpful members.

A little about me: I have a background in residential construction and I always found the idea of rehabbing SFH's appealing. I'm currently renting an apartment and am hoping to become a first time home buyer very soon. So I found BP to try to educate myself before diving in to the biggest financial decision of my life.

I was able to get a small loan from a friend at 4% interest, so for the last two weeks I've had a real estate agent that my sister recommended send me MLS listings. Unfortunately I've only looked at one property. It's a 2/1 quad, REO, and the asking price is $57K. The ARV is $80K and it needs $6K in repairs. I'd be doing all the rehab work myself. So compared to burning my money every month renting, this seems like a pretty good starter home for a first time buyer. If I get it my plan is to rehab it and live there and then rent it out and repeat the process or maybe try to sell it if I can get a high enough offer.

I have some questions before making an offer that I hope you guys can help me with:

1. How much less should I offer because I'm paying cash as opposed to financing? I know a cash offer is more appealing to the bank, but I'm not sure how much more valuable it is to them.

2. Do I need a real estate attorney or can I use a title company? Maybe this is something my real estate agent will have recommended for me, or I should shop around for the best price?

3. When do I look for homeowner's insurance? My auto insurer is a small company that gets me a great rate, so maybe I should start with them to see if I can get a discount? And if I can choose a larger deductible to get a lower rate, should I do so?

4. Sometimes I'll see a foreclosure on zillow and it will say it's been on zillow for 30 days or whatever and to go to a paid site for details like foreclosure.com. How can I get the details for free? And when I find out what bank owns the property should I have my realtor contact them or try to buy it from them directly?

I plan on spending a lot of time here on BP, and hopefully soon I'll be able to contribute to this great site! Thanks for reading!

Mike