All Forum Posts by: Tony Cimino

I've heard great things about Dundee bank.

Are you going to the local REIA meetings?

I’ve met a few wholesalers there.

If you're using MLS, you kind of have to make your own deals I've found.

I am in the process of doing my first BRRRR and have felt the burn too. But we had to get creative to make sure we meet our margins.

Thank you Ryan and Max!

@Mike D'Arrigo. This one was not. But typically homes in the neighborhood are selling for 135K with multiple offers.

This one was at 140, dropped to 132, a week before Xmas (I think I left that part out). It was over priced and the drop was not very strategic.

With that said, this house should appraise mid 130’s. I got it at 126.

Than you Bill! I will reach out to a few people at my local REIA.

I loved the episode @Jenny Bayless

Far too often people will explain that they bought a house at 120K, put in $40K in rennovation and sold or reappraised for $250K.  This isn't at all typical in my market.  My market is very similar to Colorado Springs, where we just bought a home for 126K, and rental in the area rents for $1300, but a home if rehabbed, could be worth up to $180K (sound familiar?).

This is a much more realistic episode for newbies like me!

 

Forgive me, since I am still trying to understand.  If the appraisal comes back at $136K, and I bought it for 126K, and houses are going for the appraised value, aren't buying below market value?  I am not saying I got a smoking deal, but I don't believe I overpaid on the property.

Just got under contract, and am closing in 2019.  With that said, our taxes just got a lot more complicated!  Anyone know a good CPA or Tax firm?

Thanks,

Tony

We tried that with a few homes that were sold within 18 months.  We are a conventional loan, but I got the green light for a 21 day close.  I also didn't request a warranty, seller closing, or even an inspection, fully knowing that the previous buyer already had it inspected.  We lost that property to a cash offer, after there were 23 offers.

We offered on another home and offered, with the understanding/promise that nothing would be requested to be fixed.  That property is still sitting empty, after already being on the market for over 60 days.  They wouldn't come down $4K to close the deal.

In my market I found that properties that are priced too high sit for a long time.  However;  when they drop the price, if its not at least a 10K drop, it is still probably outside any new buyers.  The house we bought was at 140K, but only dropped to 132K.  If they would have dropped to 129K, they would have dropped into the home buyers with a budget of $130K.  Doing this, you can buy below market value.

Update!

We just got under contract. Its a beautiful turn key. I began looking at properties that were on the MLS for a long time. The property was for sale at 140K. They then dropped it to 132K. I got it under contract at 126K, with them paying 1K in closing. And will rent for 1%. It is a 3/1 with a small detached garage, and a parking pad for 2 more cars, and should appraise at 135ish.

After 1 year, we plan on adding in a half bath, add a backsplash, and granite countertops, and refinance.  It should appraise at 155ish (if not more).  We will then take the equity, and pull money out and put it towards another property in 12-18 months. 

Thank you to everyone with the suggestions.  I will be saving a lot of those ideas when we get our next property!