All Forum Posts by: Samuel Peters

Absolutely I would include interest in the analysis! My quick example numbers were just that, an example for you to start taking all things into consideration! 

Just off running the numbers real quick you currently pay $238 a month in interest, and it will drop to $180... saves your roughly $50 per month.
So take that $350, and run it at $400. Still takes you a little over 4 years to make the money back.

Might want to consider talking to another bank about financing on another rental property at that rate. If not a bank, can always seek personal lenders.

I am interested in purchasing a house on my block that's currently in Probate. I know the sellers and have for a decent time now. Their mother/father passed away without a will around 2 years ago so now the house is under probate while they're trying to sell it. This house needs tons of work (New roof, new flooring, new paint, hand rails, damn near new everything) and I know it wouldn't pass a VA inspection. VA loan would be the ideal route for me as it's 0% down with no mortgage insurance. I'm ready to spend money as I realize that i'll have to put a new roof on it as well as tons of cosmetic fixes (it's the no mortgage insurance that I'm really after).
With that being said, I spoke with the sellers and they said that IF we can get under some kind contract, they'd be willing to let me put a new roof on it, and do all the things necessary to pass a VA inspection. They're not in the position to pay for these things themselves, then raise the purchase price. So, I'm willing to do it and lower the purchase price.

Is it possible to get under some kind of legal contract that will allow me to do the necessary repairs, then be guaranteed that I'll be the one purchasing the house? I'm scared of doing and paying for the work, then someone else purchasing the house and they walk off with the profit (Don't think they're the type to do this, but rather be safe then sorry).

Maybe someone with some kind of experience could help me out here... Think it might be smarter to avoid that and purchase the house with a conventional loan (say maybe 5% down), do the repairs, then refinance it into a VA loan? Keep in mind I don't have TONS of capital to work with...
POTENTIAL numbers below...

Purchase price - 150-165K
ARV - 250-300K

10% Down Payment = 16.5K
Roof = 15K (I believe it will only be around 10 because I have a good roofer and I'll be the one doing the tear off)
Paint = 10K
New Appliances = 10K
New Flooring = ~3K (I'll personally install the cheap snap-in ones so this is just for materials)
Misc Repairs = ~10K (just to be conservative)

Total $ in = 65K

Potential profit from a flip/refinance = ~35K (if I refinanced for 250K)

Seems like it makes sense to me if I could refinance it into a VA loan, but will be much more difficult to find the capital. However, it seems like it'd make more sense if I could do the repairs and skip the Down Payment costs by initially purchasing with a VA loan....

Does anyone know who I would speak to to get into a legal contract with them (contract to allow me to do the repairs and be guaranteed that they sell to me)?
If you made it this far, THANK YOU for your time. If you know, PLEASE leave a comment so I can get started, as the clock is ticking!

I am interested in purchasing a house on my block that's currently in Probate. I know the sellers and have for a decent time now. Their mother/father passed away without a will around 2 years ago so now the house is under probate while they're trying to sell it. This house needs tons of work (New roof, new flooring, new paint, hand rails, damn near new everything) and I know it wouldn't pass a VA inspection. VA loan would be the ideal route for me as it's 0% down with no mortgage insurance. I'm ready to spend money as I realize that i'll have to put a new roof on it as well as tons of cosmetic fixes (it's the no mortgage insurance that I'm really after).
With that being said, I spoke with the sellers and they said that IF we can get under some kind contract, they'd be willing to let me put a new roof on it, and do all the things necessary to pass a VA inspection. They're not in the position to pay for these things themselves, then raise the purchase price. So, I'm willing to do it and lower the purchase price.

Is it possible to get under some kind of legal contract that will allow me to do the necessary repairs, then be guaranteed that I'll be the one purchasing the house? I'm scared of doing and paying for the work, then someone else purchasing the house and they walk off with the profit (Don't think they're the type to do this, but rather be safe then sorry).

Maybe someone with some kind of experience could help me out here... Think it might be smarter to avoid that and purchase the house with a conventional loan (say maybe 5% down), do the repairs, then refinance it into a VA loan? Keep in mind I don't have TONS of capital to work with...
POTENTIAL numbers below...

Purchase price - 150-165K
ARV - 250-300K

10% Down Payment = 16.5K
Roof = 15K (I believe it will only be around 10 because I have a good roofer and I'll be the one doing the tear off)
Paint = 10K
New Appliances = 10K
New Flooring = ~3K (I'll personally install the cheap snap-in ones so this is just for materials)
Misc Repairs = ~10K (just to be conservative)

Total $ in = 65K

Potential profit from a flip/refinance = ~35K (if I refinanced for 250K)

Seems like it makes sense to me if I could refinance it into a VA loan, but will be much more difficult to find the capital. However, it seems like it'd make more sense if I could do the repairs and skip the Down Payment costs by initially purchasing with a VA loan....

Does anyone know who I would speak to to get into a legal contract with them (contract to allow me to do the repairs and be guaranteed that they sell to me)?
If you made it this far, THANK YOU for your time. If you know, PLEASE leave a comment so I can get started, as the clock is ticking!

Don't quote me, and wait for a response from @Joe Villeneuve ... Just posting this as maybe it might help you with the analysis process.
Compare your mortgage payments after the principal goes down by 20K and the interest rate goes down a whole 1%.
If you're able to pay for the mortgage with just what your daughter is giving you (650) and you're able to save that ~$350 a month, then maybe it's worth it.

Consider how long it will take for you to make that $20,000 back, though. ($you save monthly * 12) <how much you've saved each year, then divide 20,000 by that amount = years it will take to make the 20,000 back.

EX... 350*12= $4200   20,000/4200= 4.5 years roughly.

I am interested in purchasing a house on my block that's currently in Probate. I know the sellers and have for a decent time now. Their mother/father passed away without a will around 2 years ago so now the house is under probate while they're trying to sell it. This house needs tons of work (New roof, new flooring, new paint, hand rails, damn near new everything) and I know it wouldn't pass a VA inspection. VA loan would be the ideal route for me as it's 0% down with no mortgage insurance. I'm ready to spend money as I realize that i'll have to put a new roof on it as well as tons of cosmetic fixes (it's the no mortgage insurance that I'm really after).
With that being said, I spoke with the sellers and they said that IF we can get under some kind contract, they'd be willing to let me put a new roof on it, and do all the things necessary to pass a VA inspection. They're not in the position to pay for these things themselves, then raise the purchase price. So, I'm willing to do it and lower the purchase price. 

Is it possible to get under some kind of legal contract that will allow me to do the necessary repairs, then be guaranteed that I'll be the one purchasing the house? I'm scared of doing and paying for the work, then someone else purchasing the house and they walk off with the profit (Don't think they're the type to do this, but rather be safe then sorry).

Maybe someone with some kind of experience could help me out here... Think it might be smarter to avoid that and purchase the house with a conventional loan (say maybe 5% down), do the repairs, then refinance it into a VA loan? Keep in mind I don't have TONS of capital to work with... 
POTENTIAL numbers below...

Purchase price - 150-165K
ARV - 250-300K

10% Down Payment = 16.5K
Roof = 15K (I believe it will only be around 10 because I have a good roofer and I'll be the one doing the tear off)
Paint = 10K
New Appliances = 10K
New Flooring = ~3K (I'll personally install the cheap snap-in ones so this is just for materials)
Misc Repairs = ~10K (just to be conservative)

Total $ in = 65K

Potential profit from a flip/refinance = ~35K (if I refinanced for 250K)

Seems like it makes sense to me if I could refinance it into a VA loan, but will be much more difficult to find the capital. However, it seems like it'd make more sense if I could do the repairs and skip the Down Payment costs by initially purchasing with a VA loan....

Does anyone know who I would speak to to get into a legal contract with them (contract to allow me to do the repairs and be guaranteed that they sell to me)? 
If you made it this far, THANK YOU for your time. If you know, PLEASE leave a comment so I can get started, as the clock is ticking!

@Upen Patel Thank you for the response, is there a timeline before you’re able to move out? Because my original plan is to do a live in fix up, then rent out the unit once I find another property to move into/fix up that property. Thank you for the advice.

Hello, Thank you for taking the time to read this as it will benefit me if you answer it along with many other new investors. I am soon to be signing papers to put in an offer for a duplex that I am very interested in. I have an inspection contingency on it. 1.) should or can I even put another contingency with a bug inspection on it? Or can I do a bug inspection and use that to counter with the seller as well as the actual inspection? (Please let me know if this makes sense or not, I’ll try to make it more clear if needed) 2.) I don’t have an LLC yet, but I am planning on getting it for the property. Should I form the LLC first, then purchase the property(there is another person interested in the property, so keep in mind time as well) or can I buy it under mine and my wife’s name, then transfer the property into the LLC? Is this even possible because this is what I was wanting to do (for times sake). I don’t know if this helps or not, but the loan is going to be FHA 203k, or Conventional (depending on if the repairs are serious enough or not) Thank you very much!

Hello, Thank you for taking the time to read this as it will benefit me if you answer it along with many other new investors. I am very new to investing in real estate and have been listening to a lot of podcasts and reading books. Today I came across a couple of terms that I have heard before, but still am a little hazy about how to find it, what it REALLY means, and how I use it during the evaluation process. The two terms are "Cap Rate", and "Debt Service Coverage Ratio". I would appreciate the responses and please try to make them simple! Thank you a lot!

@Patti Robertson I signed up for two REI groups. One being the one tomorrow. You mentioned something about scanning memberships. I don't have one and don't know how to get one. I just signed up via "Meetme" app. Does that suffice? Also, is it okay if my wife comes with too?

@Christopher Phillips what about MFH? Is it any different, and if so, how?