All Forum Posts by: Tchaka Owen

@Sean H. - make sure the contract you sign states that the lot will be delivered to you with clear title and without liens. If he tries to use a "DD" to skirt that, I'd be leery. 

That doesn't mean anything. I can send 100 offers and get them all accepted. What you need to know is how your offer compares with FMV. That delta is where you stand to make profit. If you're at fair market, save time and cancel immediately.

@Yolanda Eiland - yes, it does sound fishy. There's nothing wrong with an investor-friendly real estate agent you can work with to wholesale a home, but your clients are likely looking for a value-add property. If her dad purchased the home this year and fully renovated it, his best chance to maximize profit is to list on the MLS and get every possible interested person to preview the house.

That said, make an offer that's a good amount below fair market....that might help sniff out what's going on.

Then your problem's solved.

It is against MLS rules to give access to a non-licensed individual. If you don't want to get licensed, you need to seek an agent without ethics who doesn't care about the rules. Voila!

@Alissa Rodman - my suggestion is that you don't do anything....yet. Spend the next 4-6 months reading as much as you can on BP and listening to a bunch of podcasts. This will get your mind in tune with investing and perhaps some aspect of REI will pique your interest. Even if you stay with buy-and-hold, you'll get lots of good info.

IMO, what you did was what I consider a 'regular person investing'. That's when someone buys a house and figures they'll rent it one day and then they find out that cash flow isn't what's expected, etc, etc. The difference is that after a lot of BP research, you'll know exactly what to do with the next purchase. You'll also likely have ideas on what to do with the current home. For now, learn learn learn!

@Greg Gangle - numbers look good to me. I disagree with raising CapEx…...you're already at 8% and you're doing a $65k renovation. If you do things properly, you shouldn't have capital expenditures for a while. Saving 8% monthly should suffice. Good luck!

@Anthony Venezia - several things:

1. You're not going to pick up an investment property using bank financing without at least 20% down, realistically 25-30% down. If you don't have that, then time for a different strategy.

2. @Caleb L. already mentioned Vacancy; let me add the following suggestions: remove PMI (because you won't get investment financing needing it), the listing appears to show an addition city tax of $1268/year, that should be added; it's a townhouse, what's your reason for paying water and sewer? I'd thrust all that upon the tenants. Good luck!

@Caymian Gordon - not sure if there's a typical for BRRRR as each deal is different. I did notice you put 3 months for rehab; if it's truly $15k worth of work, you should be done in less than a month. With people working hard, you could be done in several weeks (depending on what's needed). I would advertise as soon as you're able to take good pics and get a renter in quickly. If your numbers are correct, the $271 from the original should be up to $385 based on the changes you made. IMO, that's a nice SFH BRRRR. Good luck!

@Melvin Galloway - based on your essay above, take the money and move on to the next project. $300k is a lot and it will enable you to tackle the next large project. Right now you don't have all the funding you need and you're skeptical of the situation you'd be in if you did move forward. No need for that stress, there will be other deals. And do you really want your home coming on the market in January? Btw, you wrote $1.3m this time and $1.4m earlier. Make sure it's the latter. 

@Shaun Weekes - rents are high in NY, however it is highly UNLIKELY that rents will cover mortgage et al.