Find Your Nut

We made an offer on a 2/2 double yesterday, financial look great property needs some work.  I’ll post a full update later.

A quick one tonight, far too busy searching for a new day job + twitter is far too addicting. OK on to the real stuff.

I working on securing a HELOC for a two unit we own, it has proven somewhat more difficult than I originally anticipated. The wife and I have very good credit but many lenders including the bank I work for will not open a HELOC on a rental property. After some asking around Bank of America is coming though. Dam credit crunch. According to a paralegal friend of mine BOA has many flexible mortgage and home equity products. We are getting the HELOC to have the flexibility to make a cash offer on the next property and then finance later.

There have been a few bank owned properties that I missed out on recently because of the lack quick cash. M387any sellers especially those of bank owned properties want fast closings dates, typically 30 days. The average closing in New York State is about 55 days. Additional leverage that can be used when negotiating for an REO is they typically want the closing date to be 2-3 business days before the end of the month. Make sure your initial closing date is a week after the first and then work back for a price concession.

The old saying came came true again. I had a great long term hold or Fix & Flip opportunity on a 3/3 double in North Buffalo, but I waited too long to get the bid in on. It needed ever surface touched but was worth the money.

Rental income is $1350/month.
I attached the spreadsheet link, the basics for the flip & fix:

75K purchase price
~15K for improvements
130K sale price
10K closing costs
~20K in profit

Check out the sale page on the sheet.
http://spreadsheets.google.com/pub?key=p-H73ginwGtfd3oHWtNDvcA

Just getting rolling had to update and reinstall the site. My goals for this site are to discuss real estate investing, rental property ownership the trails and tribulations of both. I’ll trow in some ideas on how to add value and a little style cheaply, as well as review financial’s on potential deals. I have a great valuation spreadsheet but I am always looking to improve it.