All Forum Posts by: Vonetta Booker

I'm looking at various properties for my first buy & hold rental--decent, middle-of-the road neighborhood, REOs, short sales & HUDs that are in fair condition.  

Is $400/mo. after expenses a decent cash flow for one's first property? This is a 2/1 HUD going for $52k, w/ $2100 in annual taxes, potentially getting $1200/mo in rent, factoring in 10% each for monthly maintenance & capital expenses, and 8% for monthly vacancy expense.

It doesn't seem like a whole lot of cash flow, but I'd like to know what you guys think.  (I've calculated would-be properties with higher return numbers, but they tend to be in worse neighborhoods.)  Thanks!  

True,  Bryan-- most experienced rehabbers  forego formal inspections--- I'm just not at that point yet,  though it does seem like banks are more partial to those offers.

Exactly. And it wasn't even do much about not allowing inspections ( because I've seen some REO listings that don't)-- but then why not just say that upfront in the listing?

Plus the L.A. was so emotional about it, lol--which led me to believe they didn't have any other offers. Because why not just move onto the next, instead of wasting time with a long angry reply to me?

 This sounds like a great setup, Brant.  How did you find/hook up with him? 

Wow...wish we had ProSchools when I was getting my license.  But alas, CT doesn't have any online learning for RE.  Booo. 

Quite the interesting REO experience I just had:

I put an offer in on a property last week w/ a 10 day inspection; the bank countered with "0 days" for one. Now, since this would be my first rehab, I'm not comfortable with foregoing an inspection at this stage (nor will my private lender lend w/out one).  

When we nicely explained the inspection would be needed to go forward with the purchase (or we'd simply move on, no harm/no foul), we got this looong email from the LA,  demanding to know why I was asking for inspection days, why I hadn't inspected prior to making an offer (as if I'd spend $$ to inspect a property I hadn't yet won a bid on!), utilities wouldn't be turned on, etc.  Mind you, nothing was stated in the listing about inspections not being allowed.  And I guess this guy never heard of structural inspections--which is what my inspector does for REOs w/ no utilities--just to make sure there's no structural stuff I was unaware of (including buried oil tanks, etc.--which I narrowly missed recently, thanks to said inspection!) Then again, this is an agent I found out later was charged a couple of years ago w/ theft from a rival, so I guess shady behavior is a thing....the defensiveness not only left me incredulous, but looking at the seller & LA w/ a crazy side-eye--something to hide, perhaps?

We (professionally, of course) told them to stick it where the sun don't shine, lol. 

But I just had to vent...since when does a seller get so bent out of shape because a buyer "dares" to ask for an inspection??? SMH...

Thanks for your input, guys. @Crystal Smith , submitting offers as "Cash or Financing" is a good idea--I'll consider that next time! 

I have cash available for a property I want to make an offer on--however, I'd rather not tie up all that money if at all possible, and I also have a private lender willing to finance the purchase & rehab.  

Is it possible to make an initial REO offer using cash (i.e. showing a bank statement POF) to make the offer more attractive--but then having private lending in place by closing?

I've been checking out existing comps in a desirable area of my city.  The highest ones aren't new rehabs, though--although well-maintained, they're pretty dated (probably older, original owners).  

Is it possible to beat existing comps if you rehab a home into better condition than anything currently on the market there (assuming that it's a desirable or "hot" neighborhood)?

Thanks for your feedback, guys.  @Elizabeth Colegrove --how long does it typically take for one of your short sale deals to be completed?