All Forum Posts by: Account Closed

Thanks Jason & John. I'm looking to do a Cash out Refi, so ARV is important. I'll take a look at some Tai's and see if I can find some consistency in numbers.

I set a goal about 6 months ago that I would make my first purchase in Q1 '17, and I'm well on my way. I found a property where the owner is looking to get out of rentals. He's owned the property since ~1970, but looks like a fairly good investment My biggest trouble is finding comps, so estimating ARV is difficult. I even went back in sale records for 3 years! Here are the details on the property

Janesville, WI

4 unit; 1b/1b each

Asking Price: $100k (Also assessed at 100k)

Rent: $2300 total

Landlord Costs (Gas, Water, lawn/snow): $303

PITI: $832 (after Refi with loan value 98k)

Vac, Maint, CapEx, Mgmt: (8,10,8,8) $782

Repairs: 17 yrs SMOKE DAMAGE; new roof; new windows; Kitchen updating - Estimated: $25k

My only comp is another seller with 4 unit; 3 units with 1 bed, 1 bath; 1 efficiency; who said they were putting on market for $160k (though assessed at $115k). Trying to be conservative, I estimated my ARV at $140, but I'm wondering:

Can anyone suggest other data points I can use to estimate ARV?

Hey all - interested in organizing another one in the next 1-2 weeks?

I also know of a few lifelong investors in the smaller communities just south of Madison such as Stoughton and Oregon, which are neighbors to Edgerton. Still renters in small communities. Verona is also a good opportunity. Epic employees scatter about the area. 

@Chris Heeren Several folks looking to sell, but not too motivated. I did talk to two interesting people though...

1) 4 bed, 2 bath looking to sell for $25k. She inherited it and it isn't working for her as a rental. Needs some work, and she wasn't looking to go below 25k because she was told she could auction it for at least 25k. I passed because of the amount of work it needs and therefore the lack of wiggle room that I'm looking for on my first deal.

2) An investor who holds several properties, and is looking to sell a few of them. I passed because he wants retail on them. The one I toured looked like it had years of his "handy work" done to it, and I was a bit worried about the unknowns that would put it over budget. 

About a dozen or so other calls, mostly thinking about selling, maybe want a good price.

How have things been in your business now that you're getting ready to go full time?

The home is a 3 bed 1 bath in Janesville, Wisconsin. Was purchased in '07 for 80k. Supposedly the owner owes ~78k, and I would estimate ARV around $50k. Would the lender even let it go for such a discount?

I think it would rent for $750-800/mo.

So I've begun direct mail marketing, and received several calls. Most are the usual "Why are you mailing me, how did you get my info?!" However, I found one motivated seller. Here's the situation...

Underwater in his mortgage.

Behind in payments.

Has moved out.

House needs a bit of work - roof leak & replacement window(s).

The owner says he plans to "give it back to the bank."

I'm thinking this might be a good opportunity for a short sale. 

Does a short sale need to be listed on the MLS for it to be approved? Can I work with a RE Attorney on the short sale rather than an agent?

I was considering calling his lender (DiTech) to ask about their short sale requirements, and see if they are able to share any info about this property. Any suggestions on what to ask?

@Michael P. From my research, the price listed is not approved by a bank, and therefore the listing agent will take your offer to the bank and try to get approval. 

All great thoughts, and I agree. She knows that I'm not going to shy away. She has a good financial education, but from a different & more traditional foundation. I'm always accommodating & listen, but am still persistent & try to educate her about my strategies. I plan to move forward regardless because I know it's the right thing to do, and eventually we'll find that the proof is in the pudding. It's always easier to move forward with the support of those around you, so I thought some folks would have some good stories to share. Thanks All!

It's been a topic on several podcasts, and I know a lot of people have gone through the same challenge... 

You have a wife, husband, fiancé, boyfriend, or girlfriend who didn't like the idea of you starting to invest in real estate. I'd love to hear - how did you overcome that & get the buy-in & support of your significant other?