OK here is the deal

Acquire it. I see a deal there.

A couple of questions.. How does the price compare with the rest of the area??

Also, how does the size compare with the rest of the area? Be careful about acquiring the largest house in an area. Peeps may not be willing to pay what the house looks like it is worth.

Thats what I looked into other properties in same area. The price would be within range at 350K. Its a really nice neighborhood with the exception of this house. Also it sits on largest lot because its actually two lots combines which if I ACQUIRE...lol...I will subdivide eventually.

As far as a cash flow in it as a rental. The rooms are HUGE and I can get 500-600 per room (500 with out bathroom 600 with own bathroom) for each bedroom as a rooming house. So I could in all actuality make 2500 - 3000 per month with not if 1350.00

what do you think

I would do it..with the resources you have in your back pocket!!!....do it...

D

i see your dellema, on one hand you have this SWEET deal, the other hand, thats going to be your LAST deal for quite a while. Are you sure that this property is a common property in the neighborhood? If the COMPS are there like you say then i think i would trade being financially tied up for now, to CASH IN later, i mean look @ the RENT CASH FLOW#@!$ i think you have a decent plan, do it already, YOUR HERO, SULLY.

So I DID IT!

Thanks for the push guys. It can only get better from here.

Keep us updated on the deal.

you go now,lol hahaha,i think you did the right thing. SULLY.

good one...

Be careful with the rooming house idea... A LOT of pitfalls with that strategy. Some guru recommended this for starting investors and I was horrified.

1) It's VERY management intensive. Take normal multi-families x 10.

2) Some municipalities have regulations against them so check into that. Fighting with the city is a real drag.

you talking about, example? SULLY.

i see, i didn't pick that up earlier when i was reading the post, that ant was planning on using the facility as a ROOMING HOUSE, cause i thought she was trying to rent as separate units and when i was reading $500 for no bathroom i was like what the @$#% is she talking about, no bathroom?, now i understand, i still would like to know about the regulations though, MR.MARK? YOUR HERO,SULLY.

Some cities flat out don't allow them. Or they have to be licensed. Or there may be parking regulations ie have sufficient parking.

Those are some examples. Call your city.

I already checked into permits as a multi family dwelling and it was already permitted since it use to be a senior living home

Anita, just out of curiosity, have you already checked into subdividing the lot? If so, couldn't you pull a DG and pre-sell the lot for some extra cash? Even if you had to sell it at a slight discount due to the eye sore? or, could you break the lot into 1/8th (5445 SF), 1/8th, and 1/4th of an acre for 3 lots and sell at least one, if not both of the 1/8th lots. It seems as though the lots in California are all so small anyway. At least that's the way it was in Sacramento! Our lot was the largets in the neighborhood and it was only .17 acres! Just a thought.

Rhonda

Rhonda I am all over that. The property is long giving you tons of frontage and it can be equally divided up into 4 lots per specs for that area. Individually the lots would sell for 100K a piece even in todays market. So when I said I could sell for 350K in a few years I meant house and that lot. I would make an additional 100K per lot per my appraiser. I just got that bit of info about 2 hours ago.

DO NOT let this one go, i don't want to hear that it just wouldn't work. SULLY.

I should have answer back tomorrow on this one. Bank anxious to sell. So keep your fingers crossed and thank sully.

Said they countered this evening around 5pm with 130K. I sent bank second offer for 110K with note that that was my last and final offer. So lets wait and see

I love it. I put in an offer the other day on a house that was listed at 239. I offered 171. I told my realtor if they say something like 230 to tell them 171 is the offer take it or leave it!...

it wasnt excepted but...hey it is what it is. I wont let anyone make or talk me into offering more than what I think it is worth (in order to make me cash)

Ps...so my realtor emailed me this morning...to make along emai lshort. she said was no longer going to work with investors.

I said ok...bye-bye! Iam guessing she couldnt deal with all the low offers and the and/or assigns.

Most would say I am an azz anyway D...lol...so its how I deal with most business transactions. But as far as your realtor, she was not confident apparently and a little weak... I will even go so far as to dsay possibly a little lazy because her job was to assist you and help you but she just could not do it or didnt want to. So it makes you think.

so I emailed a new realtor, he is actually a friend. Here the email I sent him:

"Hey Brett,

I was wondering if you would like to work with me. I am looking for an investor’s agent. Someone that has done his own investing, and understands/knows what to look for and what not.

Question or 2..

Do you have a list of foreclosures and pre-foreclosures?

Do you have issues with submitting low ball offers?

Are you open to, and make suggestions for, out of the ordinary deals?

Are you ok with making any necessary changes to the agreement of sale contract?

Thanks,
Darren "

He replied: Thanks for the offer, but I dont think this is something I would persure at this time.

ok so why would a realtor turn down potential money?

But I like the email. It is clearly stated so that they know exactly whay you need and are looking for in them

thats rediculous, i mean come on it's your friggen job a@# face, do your damn job, D don't sweat it, they are just weak, pathetic, weasels. YOUR BOY, SULLY.

i'm still with ya, i think it's in the bag!, i'm pretty sure thier gonna bite, let us know. SULLY.

The bank accepted my offer and apologized for taking so long to get back to me..lol.

Then they also sent me another offer - there is a property that once rehabbed will be worth over 300K just going by comps on prop next door and o same street. They house has been vandalized extremely. They suggested I put an offer in on that one too. My realtor laughed and said they are only looking to get 49K out of it if that. I looked at and it is tore up put the plumbing and foundation and roof seem in good repair. Looks mostly like vandalism and graffiti and stolen sinks. I found a lender on the list I posted that told me yesterday they would finance me on flips at 65% of rehabbed value. So I submitted this one to them so now I will wait and see.

As for the one I just got offer accepted on, its funny how things work out. I thought that would tie me up for a while - then I find a great lender to work with me and help me meet my 1,000,000.00 goal - awesome. God is good!

congrats. So that lender that will finance up to 65% of the REHAB value...ARV?

is that right...if so thats awesome....I thought they all lent at 65-70% of price you paid.

D I guess for purchase they do but this is what they offered me. So I am taking it. They may be able to help you too.
**************************************************
Jason Latimer
Investor Relations
5230 Las Virgenes Road, Suite 285
Calabasas, CA 91302

310.395.0010 | p
310.395.0130 | f

www.anchorloans.com

For traditional lenders.. this is true. That is why it's often a good idea to avoid them. HML or private lenders do NOT have this limitation.

But in this situation this worked well for me. But like you I advise anyone to search for the lender that right for them

Anita.. I assume this was a smaller bank? Local banks are a great resource.