JUST LOCKED A DEAL!

Congrats Tom and Jeri. Best of luck passing it off to the next one. What is the ARV? What kind of wholesale fee are you looking to get?

WAY TO GO ...SOUNDS LIKE A GREAT DEAL! !!! Like cathy said what r the comps in the area and repair list?? Or did u just offer 50% off unseen? ? Exited to hear more!! With mnthly cashflow like that what r expenses??? R u interested in a partner on this?? Or assigning for sure?
Jay

Great job guys. From your initial information it seems like a great deal. How many repairs are needed and is it rented right now? I would also be interested in what the ARV is. Keep up the great work!

The ARV is $58K-$70K, as this property is 2178 SQFT total. The only good problem we have is there are no Duplexes with One Garage apartment type in the neighborhood. However, properties sell in the neighborhood for $27 / sqft to $37sqft. I ran the comps myself as I have MLS access and have done business in this neighborhood before. This is a great Hispanic market.

The way I see this property is on the Cash Flow. Two units are currently rented, one for $375, one for $350. The unit that is empty was rented for $450/mo. This unit needs work. It is going to need a lot of cleaning as the previous renter left bunch of stuff, plus will need window A/C units, few broken windows, some paint and clean up. It depends on how much you will want to put into it.

We'd like to get $10K for wholeselling this property. I spoke with the renters today and both are fixing up the place themselves without backcharging the owner. The owner is out of state and getting sick with some personal issues, so the owner cannot take care of the proeperty anymore.

Send me a PM whenever you can or call me so we can discuss. I have photos of the property. The first time, I drove by the property. The owner took a line a credit years ago a paid $52,500 for the property. They owe $32K but they were willing to take $28K to sell the house, as they live in New Mexico and personal issues. I am familiar with the neighborhood as we have other investments in the area. Seller pays water and gas, and tenants electricity. Bills run around $300-$400 per month. They were trying to optimize the properties by having electric stove, electric water heater, etc. As I said, large side duplex needs work and lots of cleaning. It reminded me one of the presentation at the Edge event where there was a nice large house with lots of junk. Zillow is appraising this property for about $98K, but I dont believe it. If it is in good to excellent condition, I would rate it for approx $70K.

Two out of three units are rented right now. I spoke with the renters and they are both related father and son. Father lives in the Garage apartment and Son in small duplex side. Father works in construction and both have been fixing up the units themselves. The large side of the Duplex is a two story but needs repairs; mainly lots of cleaning, flooring, some paint, plus I saw few holes on the walls on the sheet rock. It doesnt look like anything major. Roof looks in good condition, probably within 10 years old shingles. We are happy to be part of DG family as everyone always keeps other motivated to keep doing it.

Was this property listed on the MLS? If so, for how much? If it was unlisted that will make wholesaling it much easier.
You say you want to get $10,000 for this, so you would flip it at $38,000 right? If it was listed on the MLS it would have to have been listed at more than $38,000. Most real investors won't pay you more than it was listed for in the MLS, does this make sense? Why would they?
If it was never listed than no problems. I do think you should have a base rehab cost for your buyers. Like this:
ARV $58,000 $58,000 to $79,000 is a $12,000 spread(you need to be accurate) go with the low number.
Rehab to make rent ready $xxxx
Buy it for $38,000
Potential monthly rent $1100
Taxes $xxxx
Property management $xxxx per month

Personally I think $10,000 on a $28,000 deal is too high. 36%!! I would go with $5,000 and move it quickly. That of course it totally up to you. You do want your buyers asking for more!

Michael Mangham
MD Home Acquisitions LLC

You know it makes sense. $5K is still good and more $$$ than yesterday so why no? Taxes are $714 for 2010. Last time this property was listed on MLS was in 2002 and 2003 for $65K. Thanks for your input again, we are planning to get a real cost tomorrow from a local contractor that we normally use, but based on what we've done in the past, rehabs could be around $7-$10K. I really dont believe that much money would be needed to get the large duplex side rentable.

One of weak side is the wholeselling and appreciate all the help. Since the Edge Event, one of my goals is to include more wholeselling to our real estate activities. We hope we can do good on this area too.

You wanna try everything, but at the same time you don't want to overload yourself. I think JTBOGGS said it once on here, that we should stick to one concept whether it be wholesaling or lease options or whatever. Once you master one, move on to the next and repeat.

Great job, TomAndJeri!

You are right! this could get overwhelming! We've doing a lot of buying and hold for the cash flow, but want to try the wholeselling as we do not need any of our own money, which is nice! Thanks for your advice!

Tom and Jeri,

sounds like you are all pumped up since the Edge; I need to try to do some wholesaling as well- were you able to wholesale this duplex? can you post details so that others can learn from it...

Wishing you success,

Valerie

Did you sell or hold this property ?? I am interested to hear what u have done with this also!! This sounds like an opportunity if structured right.hope all is going well for oh two! !
Jay

Actually we decided to hold this property for the longer term.

I also have a Duplex with garages ...they r unique to my area too and bring great income.
on another note ...jerk I haven't gotten my info to you for IRA yet but I def will...just BURIED with work and rei.hope to chat with oh guys soon! !!! Hope you can make the cruise
Jay

Jay sorry i didnt reply earlier, i have been traveling this last couple of days. We decided to hold the property for cash. We were able to free up our LOC which paid for this property. Hope all is well with you and family! Tom

Yes still looking foward for the cruise just buried as well. Yes this property will give us a nice cash flow. Look forward to hearing from you on your rei.