All Forum Posts by: Wil Reichard

I've worked with several lenders and asked this same question. I have not found one that works that way.

@Michael Seeker This is a great article. I stumbled across it a few months ago. It really helped define and understand how you can predict a market crash and understand them

Looks like I'm bringing this post back to life. I was looking at doing something similar. Except a lot easier. Find a home owner who is in default and have them agree to let you save their credit score and going into forclosure. If they are in default and agree to sell you the home for their net pay off amount (and you can still make money on flipping it or turning it into a wholesale) Why not just find a cash buyer, or if you can be the cash buyer... and just bring a cashiers check and a contract. Make a contingent that the XX amount on the Cashiers check or wire will be used from the home owner to pay off the net pay off mortgage and then buy the house for a thousand bucks or something in that order. Does anyone see anything wrong with this? I've searched all over and havnt really seen anyone else doing this or talking to much about this approach... Thanks guys!

I have to agree with @Joe Villeneuve. I read his comment thinking, "man he sure is giving it to him". But in reality I would have to walk away from that as well. If I can offer you some advice, something that I found helped me. Go on the MLS or even Zillow/realtor and go analyze 50 deals. Weather that takes you all of today or a week to do. Get used to running the numbers so you know the exact cash flow and what you're dealing with. Taxes need to be reviewed and not an educated guess, or not what your friend pays for his house. Make sure all the numbers will be darn close to what you wrote down when a deal is closed. Unless its in a great area for good appreciation. I wouldn't get into anything that is under $175 CF a month myself. With greater risk comes greater reward, and I see a lot of risk here (Roof and HVAC needing replacing) and not a lot of reward. Good luck, but definitely go looking for better cashflow with more detail in your numbers.

I would love if you guys could share your walk through of how your tax liens play out. Let me hear the stories with success and failures. 

Duplex. 2 bed 1 bath on both sides

My maintenance and Cap Ex is a little lower, here is why.

New metal roof, new HVAC and updated electrical. New flooring and paint. That being said, it still needs a bit of TLC to get it up to my standards.

Alright so here's the numbers...

Purchase Price: $85k

Down payment: 3% conventional $2,550

Mortgage $540

Taxes $72

Maint $70

Cap Ex $70

Insurance $80

PM (For future use) $120

Vacancy $60

Flood Insurance $90

Yes the property is in a 100 year flood zone. It's a smaller sized creek in the back yard affecting this property and the neighboring property.

Rent for each unit is easily 600 a month. Current land lord is charging 425 for one side and 500 for the other side. Very low for being in a hot area. With some fixing upping and a few thousand for remodeling. My low ball est for rent is 600 a side and a avg number is 700, still on the lower side. A 3 bed two bath is renting 1,400 down the street. Most homes are near the 1k mark with a  2 bed 1 bath. Cash flow at 600/month for both units is $106.33, and charging 700 a month is $306. All those numbers are being very conservative. Thoughts? Suggestions? Also, two tenants that are in place have a year long contact :/. Wanting to move in kinda destroys that deal. Looks like they still have 7 or so months to go.  And I cant cashflow with them locked into that lease. Any suggestions on get em out without waiting for the lease to renew? Someone suggested paying for the keys. Offering a month of rent for their new place.

Even though this thread is years old this information really helped me out. Im looking at a duplex in a very hot market. There is a small creek behind the house that creates a 1 year flood zone, just the neighboring house has it as well, the rest of the neighborhood is free of the zone. Anyone have experience on how hard it is to sell when its in a flood zone?

Wecome to BP! Ask if you have any questions

Welcome! I'm from Greenville SC. Ask away if you have any questions

Greenville SC is where I am located. It's the 4th fastest growing city in the states! But with that being sad it's so hard to find duplexes. If they are for sale they are marked up by a lot. You'd have to find a special deal or find a great deal. I've been looking for a duplex or triplex for a while but it's hard to even find them on the market. But, with an investor mindset I'm sure you could make it happen if you're motivated enough. Best of luck to you