All Forum Posts by: Rafael Floresta

What is the length of the project? Cost of holding (tax, interest, points, hard money)? Do you have a transfer tax?

It looks like you have around 10k buffer, which is around 6% of your sold price, so the agents commissions.

The risk that I dont like in your situation is that if you can't sell, you can't refinance your base money out, since 75% is less than your aquisition + repairs. So not only you because a landlord without wanting to, your startup cash is locked in as equity.

A couple notes on it:

- Look at the cost of doing it and the time spend, against the profit from the lead generated. It looks like you havent profited yet.

- Also keep mailing them. Repetition is key in direct mail.

On the 4 and less the return is usually crappy too. Property tax is the culprit, most of the time.

Being a beginnerish is specially hard to find anything good. I've been trying to buy my first rental for almost a year. I have all the stuff ready to go, cash for 25% down, financing, good credit, just no deal.

That is why I am looking into 5+, so I can get a valuation based on income and cap rate instead of being on the business of comps and fighting homeowners.

The area still loaded with foreclosures, REO's, short sales. Very different than the rest of the country.

I've been trying to find a good deal in my area for buy and hold, but it seems a impossible task. The SFH have too much property tax and the price doesnt match the income. So I have been looking into buying a 5+ Multi Family so I can get out of the home owners area and do business based on income.

I have enough money to put skin on the game, but I can't buy it all cash. My question is, can I finance it as my first rental? What types of bank should I look for?

@Anthony Conway Yep, I have the current owed amount. I've seen they taking less, up to 60% sometimes. Most of the time their upset price for owed amount + about 10k for attorney fees.

I see lots of houses going back to the bank, and some of them I'd like to buy them. I wonder if the banks would even answer my phone call to offer on it before it hits the MLS.

Thanks for all the input guys.

@Patrick L. on a home that needs kitchen, carpet, bathrooms at first glance, 3bed 1bath, 170k ARV, how much would you budget as "safety buffer"?

@William Donaldson those are being auction on the sheriff sales. I can't get in before the auction, and if I want to bid, I need to budget those repairs. People are bidding, so I am trying to figure out how to do it.

Also, I've seeing the bank take back several properties that I am interested too, and I usually track them to see when they come back on the market. Usually they take a long time, specially if they have someone living in it. I am wondering if the bank would even read my letters/answer my calls to offer on that property.

That was some great piece of advice. I reread your post 10 times to make sure I assimilated everything.

This specific one I drove by, goes for sale next wednesday and as of last thursday they were still living in it. What is the usual move out timeline? And is the eviction process for a squatter the same as for a rental tenant?

I got the gist of foreclosure auction here in my area, but I am still unsure of how I should estimate indoor repairs for foreclosures. I can estimate things like siding, roof, grading by driving by, but most of the time I can't peak inside the houses.

How do you do it?