All Forum Posts by: Kim Handelman

Hi All,
This deal could be very lucrative but I don't know how to make it happen. It's 70 acres with a private lake in the middle. There are 5 homes clustered on the left side of the lake (these 5 houses can't be subdivided - they're grandfathered in and must stay as one lot). The right side of the lake can be subdivided into 5 parcels (minimum 4 acre lots estimated by engineer that knows the property well). Currently raw land with no perk tests done. Will need to be well and septic.

I would like to partner with a developer. We'd subdivide and he'd take the lots and I'd take the houses on one lot for buy and hold.

Here are the specifics:

$900,000 - Purchase Price
DEVELOPER:
$550k - Developer pays for the land on right side of lake to break into 5 lots
$175k each - Average sale price of subdivided building lots
$550k - Sale price for new 2,500 sq ft house in this neighborhood
-----------------------
ME - BUY AND HOLD:
$350k - I'd pay for lot w/ 5 houses as is
$330k - Estimated Rehab on all 5 houses (to be done 1 house at a time over 2 year period)
$4,600 mo - Current Rental Income 100% rented w/long term tenants (under market value - houses are falling apart)
$8,400 mo - ARV Conservative rent
$10,500 mo - ARV Conservative short term summer rent + academic rentals (high demand in this area)

QUESTIONS:
1. Do the numbers look as good as I think they look?
2. How would I structure the deal given it would take 6 months to subdivide the lots?
3. How could I finance the rehab and do it 1 house at a time?
4. Anything I'm missing?

Hi All,

I found a great 2 family rental property a block from a hospital. It's cashflowing now but not great ($150 a unit). I was thinking of turning it into traveling nurse housing. Each unit has 3 bedrooms and 1 bath. From what I've heard traveling nurses tend to be single so the units are too big to rent to one traveling nurse. Do you rent by the bed? How much more can you charge since the units would turnover more frequently? Are there any good websites where I can learn more about traveling nurses and their housing needs?

Thanks so much!

Whether you are new to real estate investing or a seasoned expert, come learn and network with other successful women investors! Our mission is to support and inspire WOMEN real estate investors around the globe to live a financially free and balanced life. We are dedicated to creating empowering online and in person communities where WOMEN have a non-intimidating environment to ask questions and receive the support they need. Our vision is to see all WOMAN investors achieve HER financial freedom goals on her OWN terms. We will be meeting on the 2nd Wednesday of the month and will have speakers and other educational events. Snacks will be provided. 

Hi Everyone,

I'm an agent in CT and want to become a foreclosure agent. How do I get in with the banks to represent these properties? I've researched a bit but have only found some scams. Places that say they'll get you foreclosure listings but just take your money. How does an agent legitimately get the listings?

Thanks so much for any insight you can give!

HI Everyone,

I've had my eye on a property to live-in flip for awhile (it's been an over-priced short sale and the agent said the bank wouldn't budge on price). The owner passed away a few weeks ago and I just found out the family walked away so it's in the foreclosure process. I'm hoping the bank will be more realistic on price now. Since flippers circle like vultures in my small town and I don't have cash (I'll have to finance), I want to try to get to it before it hits the MLS. I am an agent if that helps me. Any ideas?

Hi Everyone, 

I am looking to buy a home to house hack in my small town on the shoreline in CT. I have to stay in my town for the kid's schools and it's slim pickings. I've found a property that would be perfect but it was an overpriced short sale for 2 years and the family signed it over to the bank and walked away. It's not on the market now but I know it's in the foreclosure process. Flippers circle like vultures in my town and I want to try to get it before it hits the market since they pay cash and will more attractive than me. 

My question is, how do I get an offer to the bank before they put it back on the market? I'm a real estate agent if that helps but don't know how the process works.

Thanks!

@Bryan McDonald A good realtor will set up a schedule with you to discuss the properties progress. At the listing appointment I recommend a price range and then tell my clients whatever price they choose, we will have a meeting once a week to discuss progress. If we haven't had one or two showings in the first week (depending on level of property - high end properties don't see as much traffic) then we discuss a price drop. My clients also get an open house the weekend after it's listed (and every 3 weeks after) and are put on the brokers open tour the next slot I can get. This gives us plenty of input from the public and brokers to re-assess our marketing plan. Every week we discuss showings and input so we can nail down what our hurdles are. 

I had a gorgeous house get 5 showings a week but the input was "No back yard" and "Too many stairs". Both things can't be changed so we knew we'd need to adjust price until people were willing to overlook the 2 problems that other houses didn't face to save a bit of money. When we dropped $10k from the competition we got a buyer.

MAKE SURE YOU HAVE A PROACTIVE REALTOR THAT IS GIVING YOU UPDATES AND SOLUTIONS TO THE PROBLEMS YOU ARE FACING! GOOD LUCK!

@Doug Phillips I'm with you on the PMI. Waste of money! If the house is outdated or ugly, buy w/ the FHA and then fix it up and have it re-appraised to show 20% equity in the home so you can drop the PMI. Comp ARV before buying to make sure you can increase value to re-appraise. Also remember, FHA won't allow peeling paint, leaky roof, broken windows etc. so you'll have to get a good deal or a house that's been maintained but hasn't been updated.

Hi everyone, I am looking to house hack and want to buy with an FHA loan but the house I can afford is a wreck!!! Needs siding, roof and all new windows. Is it possible to get a hard money loan for 2 months to get the work done and then refi into an FHA loan?

Hi Alexander,

That was a long time ago. None of those panned out. Flippers didn't want to deal with summer cottages. The HOAs were very restrictive. The owner of the property with multiple units wanted way too much for them so that was a bust. I did however get a call right after those on the same mailing that ended up being my first wholesale deal and I made $1,500. Since then I have become a realtor and work with a lot of flippers and am now looking ot buy my own rentals. I hope Colorado is treating you well!