All Forum Posts by: Tchaka Owen

Depending on the type and size, prob $7-12k to replace. Less if repairing.

@Johnnie Bembry - we each have our own criteria. Personally, I wouldn't take the deal for a number of reasons:

1. $25k purchase + $10k repairs = $35k. ARV = $38-40k. So you're doing all that work to gain a few k's in equity? No chance. If I'm putting in $10k, my criteria requires at least 10k of equity gained. So if ARV isn't a minimum of $45k, no dice.

2. A 2/1 SFH does not fit my purchase profile. (note: not everyone feels this way)

3. I don't know where you are in KS, however I hear it's a good place for investing. That leads me to believe there are better options out there. 

If he drops it to $20k purchase, consider it. Otherwise, I suggest you keep looking. Good luck!

@Jerell Edmonds - is it too soon to purchase a property that will give you immediate equity of $70k with no mentioned downside? Hmm, that's a tough one. 

@Eldin Kalic - Panama City is not on the Atlantic (or as you call it "Coast") side, it's on the Gulf just south of Alabama. The places you mention are good. A factor might be how much you're willing to spend on a home. For example, South Florida (including Fort Lauderdale) might be the hottest part of the state for Airbnb, however it's also likely to be the most expensive to get in. Although many come to Florida for sun and water, you don't have to be on the coasts to do well. There are other attractions, such as Disney & Universal. Lots of hotels in that part of Orlando so I don't know how well Airbnb does; I do know that there are some Airbnb's by Legoland (which is closer to Lakeland) - that's an attraction that operates year round (thanks to our good weather). I'm right next to Cocoa Beach and Cape Canaveral.....2 of the attractions are the Space Center (we have regular launches thanks to Space X) and Port Canaveral. Tons of people going on cruses and some spend the night here instead of Orlando and having to transfer. So look outside the box a bit. Good luck!

@John Bohannan - real estate is local so you're going to struggle if you're looking to wholesale the 'Florida market'. You'll do much better by determining where you're going to be and focus on that specific MSA. As you get to know it better, add another. The best wholesalers I know are doing up to 3 or so areas. None are doing "Florida". 

@Gail W. - the simple answer is the latter: you allow for those things. Did your rehab budget have a line item titled "Buffer"? If not, add that for the future. In a typical rehab, we'll 5-10% buffer for unforeseen things. In your case, you blew your budget by 44%, but that's because it's such a small budget. The water heater alone would blow the 10%. IMO, there's something more important to focus on, which you left out of your post: the rent. How much will it rent for? If you're pulling in $700/mo, you can probably pay the house off in 5-7 years. That being the case, so what if you paid an extra 2 grand in repairs? Good luck! 

@Paul Skikne - consider giving a very short inspection period after which the deposit goes hard. If your deal is good, a solid wholesaler might be ok with it knowing they will 1) move it, or 2) buy it.

The small timers and/or pretenders won't risk it. Say $5k hard after 3 days; they'll move on to less astute sellers. 

I like wholesalers, they're important to our business. What I'm not a fan of are those who tie up with nothing at risk.

@Jay Dean -  I was leaning slightly towards option 2 knowing that MI would drop once you hit a certain amount of equity. Considering what Chris said about looking at a 90/10 and the considerably lower MI, I'm solidly backing it.

@Chris Mason - how about 3 shots of Everclear? :-D 

What @Account Closed wrote. I'll add that your only way is to contact the owner (or attorney if one is retained)? By definition, "pre-foreclosure" means it has not been foreclosed on. So the lender does not own it, there's no legal negotiating with them.

@Parth Patel - "lower income" means that the average person (or household) makes a little lower than the average. You're not as likely to find a Starbucks near you or Ruth Chris. As you noted, crime there is lighter compared to other areas. To me (and many others), safety is a primary concern. Since that area gets a thumbs up, what's your real concern?

How are the middle and high school rated? How close to Temple are you (ie, will students rent from you)? What's the story behind the boarded up home? Ie, should you make a move on those as well?

If the numbers on your place work, go forward. Good luck.