All Forum Posts by: Rebecca Bauer

 The realtor and I came up with the same number. Warrenton, MO is smack in the middle of St. Louis and Columbia. I am encouraged because the town is adding a new overpass and a Large Commerce center with plans for a new commercial/business route but none of that is there yet. Neighborhood is half renovated half dilapidated 1950's homes. 

Thanks, the windows and trim are all stained wood and not painted but the soffits could be an issue. 

Hmmm... With those numbers they should pay us to take the house. Thank you very much for the insight. 

We are downsizing our home to increase our buying power (and simplify life a bit).  We will be living in this property (3 bed, 1 bath, 1100 sqft) but have decided that whatever property we purchase will have the ability to cash flow if we need to live in a different property in the future. We are not attached to this house emotionally. So even though we are looking at it to live in we are evaluating it as a rental property. 

MY QUESTIONS - Fannie mae has asked for our highest and best by May 2nd, is there a strategy to win in this type of negotiation? What is a reasonable highest and best offer in this situation if we still want a decent ROI and Cash flow?

The Specs:

Fannie Mae Homepath Property  - First look expires May 2. 

Currently not livable because HVAC and plumbing are not in working order. 

59,900 List Price

90,000 Realtor Provided ARV

37,500 our cash offer (no lending because it's not liveable)

40-45k - Repair estimate (roof+double layer removal, foundation and sump pump, asbestos siding removal/replacement, HVAC replacement including about 40% of ductwork, electrical panel replacement, plumbing updated from cast iron, complete kitchen and bath, chimney removal, 1100 sq ft flooring, all interior doors and hardware, single garage door, windows and 5 exterior doors, yard drainage issues and tree removal, drywall repair and other finishes, possible mold remediation)

$345 Expenses (excluding mortgage) 

$950 Monthly Rent 

ABOUT ME

I am currently a stay at home mom and my youngest son starts Kindergarten in the fall. I was formerly a special education teacher for 10 years. However, the requirements we put on our teachers these days are not conducive to raise and support a family so I am re-entering the workforce in the real estate market. 

I started the classes to earn my real-estate salespersons license this week and will be licensed by summer. The first house I sell will be our own house and we will be using the equity from our current home to purchase two small properties. One to live in and one to rent. (Or one multifamily to house hack!)

We are located midway between St. Louis and Columbia, MO. About 20 minutes from the two fastest growing cities in Missouri, Wentzville and O'Fallon. 

OUR PLANS (as of today anyway!)

We are going to start primarily as buy-and-hold investors with the goal of purchasing two units per year. We have a goal of 8-10 units owned outright in 5 years. This is made possible by dumping my entire income as a realtor into our investments, as we are currently living on one income and will continue that practice. This will allow my husband to "retire early" and join me in the real-estate market. At that point the possibilities are endless, we have visions of flipping and wholesaling during the school season and enjoying our family during the summer season. 

OUR WHY

We have big travel plans for our family. We want to expose our kids (and ourselves) to the world. Spend time in cultures different than ours and eventually do more purpose driven travel to serve in poverty stricken places of the world. (And we also want to ride all of the big roller coasters of the world!)  

PRO MEMBER PLANS

I plan on becoming a Pro-Member in March. (This month we bought real-estate salesperson classes!)