All Forum Posts by: Robert Karvelsson

Huy, can you offer a fee for comps on the property?

@Brent Coombs I agree that the 400k appraisal with 405 into the property based on my original numbers would not work.  I think the area could see an appraisal of 480k if we were to do the 120k reno, which includes adding a 40k studio over the garage for added space.  Don't think we need to do this right away and I could add later.  The above comment with the suggested terms is more likely what I would want to do if we go ahead with this deal.  Appreciate your comments.

@Huy N. Do you think this makes sense: purchase for 265k, 0 down, interest only 5% owner finance for about 12 month (recorded as trust deed or mortgage), I pay out of pocket for up to 70k for renovations (not to exceed this amount), and after 12 months refinance with the ARV at 420k. The current comps should support this ARV and since this will be a house hack, we would owner occupy. We should be able to refi out 336k (not counting closing costs) and be into property with only 4k out of pocket. Almost for free. If rehab takes 3 months and we occupy for 9 months, then my cost savings is 4500 based on my current rent. Oh, and the owner captures 277k after 12 months and this is close to the 285 price. I think it they will go for it. Am I missing anything?

Yes, I also am thinking 250k would make this a solid deal.  The comps appear to be dropping for the last couple months in Houston and many properties of almost exact same size and same area but updated are were offered at up 480 and now dropped to 420 for example.  Not sure if this is flippers who are not wanting to have holding cost, and other properties in the last 3-4 months sold for 450-480 range.  So I know this property is close but could would need to keep rehab at under 70k

The facts on the house in question:

Area I need to live in for next 2 years, so I would renovate, move in for 1-2 years, then rent 

2200sq ft - small for our family of six, need to add about 500sq ft which pushes reno $ up

$285K asking price (a friend's deceased mom's house has not gone on market)

1960's home needs $70K-$120K in reno depending on final plans (needs foundation work)

ARV $400K-$450K conservative, there are some 480K comps

Rental value around 3K very nice professional/young family area of Houston close to Med Center 

Values all over Houston seem down average 10-15% 

Think I could have the owner carry interest only until reno is complete, then refi out about 400K.

Anyone with experience that wants to weigh in with ideas and help me evaluate this deal would be excellent!

Thanks in advance for the input.