Scharpe St Guy Posted December 4, 2006 Share Posted December 4, 2006 Hey everyone,Wife and I somehow managed to get an accepted contract on a hot piece of property that as far as I can tell is greatly undervalued. Comps for the neighborhood Vogel 10 Acs are tough to find. Anyone on here willing to throw out a good list price suggestion and why? Any feedback on the home would also be greatly appreciated as well. I plan to install a fridge, work on the landscaping (flowers, pressure wash), a few very small sheetrock repairs, might replace carpet, etc....If you like the home and would like to purchase it after I close on it then I would also love to talk to you as it will hit MLS again right after I close.Thanks everyone for your time and help.Scharpe St GuyProperty We Just Got A Contract On Link to comment Share on other sites More sharing options...
mpbro Posted December 4, 2006 Share Posted December 4, 2006 Congrats, and good luck. First, I do not believe that your target property is in Vogel 10 Acs subdivision, but rather in "Southwood/South Oaks". I find 58 reasonable comps within 1/2 mile of that property. My criteria were: structure area within 500 sqft, land area within 20%, built +/- 10 years of target, 3 bedrooms, 1.5-2.5 baths. Only 3 of the 58 have sold (per HCAD) within the past several years. Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted December 4, 2006 Author Share Posted December 4, 2006 MPBRO,Thank you for the reply. I don't like the Vogel subdivision name but that is what Stewart Title is showing as the subdivision. I would prefer Southwood/South Oaks and may list it as such when I list it.I found very few sales in the area with most being either foreclosures or tear downs which is making pricing this home much more difficult.Thanks Again,Scharpe St GuyCongrats, and good luck. First, I do not believe that your target property is in Vogel 10 Acs subdivision, but rather in "Southwood/South Oaks". I find 58 reasonable comps within 1/2 mile of that property. My criteria were: structure area within 500 sqft, land area within 20%, built +/- 10 years of target, 3 bedrooms, 1.5-2.5 baths. Only 3 of the 58 have sold (per HCAD) within the past several years. Link to comment Share on other sites More sharing options...
mpbro Posted December 4, 2006 Share Posted December 4, 2006 Well, the Southwood name came from HCAD. I have no idea which one is "right". ;-) But limiting the comps to a small nearby distance should get you something interesting, at least. In that area, I bet a neighborhood (and thus property values) can change radically just by crossing a street.You planning on renting out, or just a pure flip? Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted December 4, 2006 Author Share Posted December 4, 2006 Not quite ready for the landlord game yet. This will be a pure flip. This is the second home like this that I have purchased from forclosure where the home has been totally remodeled/updated for a great price.I'm being told that I should take the bars off all the windows and stack in the garage to make the home more presentable. I will do this post close and take new pictures once it's cleaned up and flowers are planted.Zillow.com estimates the house is worth $193,xxx dollars. I think this is HIGH but would be very happy if someone wanted to purchase it close to that.Scharpe St GuyWell, the Southwood name came from HCAD. I have no idea which one is "right". ;-) But limiting the comps to a small nearby distance should get you something interesting, at least. In that area, I bet a neighborhood (and thus property values) can change radically just by crossing a street.You planning on renting out, or just a pure flip? Link to comment Share on other sites More sharing options...
mpbro Posted December 4, 2006 Share Posted December 4, 2006 Zillow.com estimates the house is worth $193,xxx dollars. I think this is HIGH but would be very happy if someone wanted to purchase it close to that.Sounds like you'll have fun, which is all that matters. I've got a 3-month old baby, so I doubt my wife would encourage me to undertake such a project!Just looking at the sales data for that subdivision, I'd guess $60-80/sqft as a reasonable range. That's $108-144K. If you paid list or under, there seems to be a lot of room for upside. Link to comment Share on other sites More sharing options...
flipper Posted December 4, 2006 Share Posted December 4, 2006 That looks like a great money maker if you don't have to spend much on it.I think you can get 160k for it on the back end.Congrats!flipper Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted December 4, 2006 Author Share Posted December 4, 2006 Thanks Flipper,Unless the home inspection finds something just terrible this is truly an early Christmas gift for us. We are inclined to fix the few minor problems, beautify it, and list it at a somewhat lower price along with a BTSA for the selling agent to move the home very quickly. We will be looking at the home again tonight with bright flashlights to compile a list of items we need to start pricing and completing.It will be intresting to see how the appraiser appraises it and what dollar figure he comes back with. I'm useally pretty good at compling a good number but this area of town has AMAZING HOMES along with quite a few TEAR DOWNS with the majority of the homes sitting somewhere in between. The homes in between don't sell or get listed which makes it tough.HCAD value is also plainly way off for the area as I imagine they have the same issue i'm having of reaching a figure backed by undeniable data.Thanks again,Scharpe St GuyThat looks like a great money maker if you don't have to spend much on it.I think you can get 160k for it on the back end.Congrats!flipper Link to comment Share on other sites More sharing options...
jscarbor Posted December 5, 2006 Share Posted December 5, 2006 I don't know that area very well, hell hardly at all but it seems that it is a really good deal? Congrats! I sure hope it works out! Link to comment Share on other sites More sharing options...
Original Timmy Chan's Posted December 5, 2006 Share Posted December 5, 2006 Great looking house, and I love the location. I'd love to be that far up Scott Street towards UH. It would cut my drive to UH games in half! Hell, I could walk home from the games to that location! Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted December 5, 2006 Author Share Posted December 5, 2006 OTC and jscarbor,Thank you both for the well wishes on the home. I had never driven back in there till last week but was surprised by the clean yards and kept up homes in that pocket neighborhood. It's a great home in many ways but perhaps the best attribute it has is the proximity to UH/TSU/Medical Center/Downtown all within three miles. Perfect house for one of those little Vespa's since your close to everything.Thanks again,Scharpe St GuyGreat looking house, and I love the location. I'd love to be that far up Scott Street towards UH. It would cut my drive to UH games in half! Hell, I could walk home from the games to that location! Link to comment Share on other sites More sharing options...
TJones Posted December 5, 2006 Share Posted December 5, 2006 Is that an apartment complex there tto the right of your house ? Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted December 6, 2006 Author Share Posted December 6, 2006 TJones,It is two four plexes to the right. Again very well well kept up and clean. Quite honestly I don't recall a neighborhood such as this one that is as clean and well kept that is not gated.Any idea on a price? Turns out from talking to our mortgage guy that we may need to hold onto the house for 4 months so the loan is seasoned to some extent. He said if we do too many of these and sell within 4 months after approx three mortgage lenders won't loan to us anymore for a period of a couple years. They will also come back to him and request his fee's/profit from the transaction back.Anyone have any knowledge on this?Thanks,Scharpe St GuyIs that an apartment complex there tto the right of your house ? Link to comment Share on other sites More sharing options...
gnu Posted December 6, 2006 Share Posted December 6, 2006 Turns out from talking to our mortgage guy that we may need to hold onto the house for 4 months so the loan is seasoned to some extent. He said if we do too many of these and sell within 4 months after approx three mortgage lenders won't loan to us anymore for a period of a couple years. They will also come back to him and request his fee's/profit from the transaction back.Anyone have any knowledge on this?I think he's right. It was a rule enacted about four years ago to cut down on mortgage fraud.also of note, the FHA won Link to comment Share on other sites More sharing options...
jscarbor Posted December 6, 2006 Share Posted December 6, 2006 If you think you can move it verey fast then there are some people that can personally lend at a 12-15% intrest rate. The rate is really negligable if you move it fast though? Link to comment Share on other sites More sharing options...
TJones Posted December 6, 2006 Share Posted December 6, 2006 TJones,It is two four plexes to the right. Again very well well kept up and clean. Quite honestly I don't recall a neighborhood such as this one that is as clean and well kept that is not gated.Any idea on a price? Turns out from talking to our mortgage guy that we may need to hold onto the house for 4 months so the loan is seasoned to some extent. He said if we do too many of these and sell within 4 months after approx three mortgage lenders won't loan to us anymore for a period of a couple years. They will also come back to him and request his fee's/profit from the transaction back.Anyone have any knowledge on this?Thanks,Scharpe St GuyYour mortgage guy is exactly right, until you generate enough capital to just buy properties like this outright, mortgage lenders don't want to give money out on something that is gonna get flipped in a month or two, there are stipulations in some lending where they have a clause, but it may also be that your mortgage guy doesn't want to lose any commissions by you flipping your house so quick, he gets paid by the bank, but I know for a fact that some banks will force a commission to be paid back if the loan is paid off within a month or two, and that can hurt a loan officers pocketbook. It's a whole money laundering protection thing for most banks also.For me, having those apts. next to me would be an instant "no way jose". Beggars can't be choosers though when it comes to someone who needs a place to live and can only afford something around $100k. So when you flip this cutie, you will have the right buyer who deosn;t care about such things I am sure. Good Luck to you. So my price, about $109k, let them pay full price and you cover the closing costs, and a warranty, and your buyer won't have to come out of pocket anything, and have plenty of money for the move, just get the $1000 earnest from them. Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted December 6, 2006 Author Share Posted December 6, 2006 Tjones,I sure hope it's higher then $109k, yes the appts next door would be a turn off for me too however this area of town is very distinct due to it's vicinity to UH/TSU/Downtown/MedCenter etc... It will pull the price down somewhat but not as much as in others areas I have a feeling! Hopefully I'm right!!!Does anyone on HAIF know of any Hard Money Lenders that they could refer me too? I would prefer not to have to go the traditional mortgage route and rather just tidy up/fix up and sell with out any harm done to the lender or my ability to puchase homes in the future using a mortgage.Thank you everyone,Scharpe St Guy Link to comment Share on other sites More sharing options...
flipper Posted December 7, 2006 Share Posted December 7, 2006 Tjones,I sure hope it's higher then $109k, yes the appts next door would be a turn off for me too however this area of town is very distinct due to it's vicinity to UH/TSU/Downtown/MedCenter etc... It will pull the price down somewhat but not as much as in others areas I have a feeling! Hopefully I'm right!!!Does anyone on HAIF know of any Hard Money Lenders that they could refer me too? I would prefer not to have to go the traditional mortgage route and rather just tidy up/fix up and sell with out any harm done to the lender or my ability to puchase homes in the future using a mortgage.Thank you everyone,Scharpe St GuyIf you've got a little money to put down and have decent credit you should talk to a smallish bank about a construction loan.We pay 1% over prime, 1 point origination, and they will generally loan us enough money to carry and renovate the property minus a ~15% downpayment.flipper Link to comment Share on other sites More sharing options...
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