Newbie needs help again!!!

It’s 3:00 am and I am so excited to get started at this I can’t wait for the sun to come up so I can go on a search and destroy for a deal! ;D

I have been reading posts for the last few hours and subscribed to I have a list of properties to look at and research.
I do have one in mind already and I was hoping to run it past you all to see if it sounds feasable and if so, what is the first step towards financing.
(assuming the guy accepts my offer)
Here goes:
The house next to mine is a nearly identical 2 family that the owner has had listed for 1 and a half years. His original asking price was $89900, he has since come down to $69900. He originally paid $43000.00 for it about 7 years ago. The house is in need of at least $15000.00 in repairs(new siding, gutters, porch, interior paint) I can do most of the repairs with the exception of the siding. My house was appraised 2 years ago at 90,000.
I have many of the updates his house would need with the exception of c/a. If I offered 45000.00 and he accepted, would that be enough of a cushion for a feasable deal? Assuming the ARV would be around 85 to 90k and he has no leins? I would most likely try to sell immediately after fixing it up. Real estate in my town has been on fire the last couple of years and I don’t think I would have any trouble selling it.
If it sounds like a decent deal, what form of financing can you reccomend for the least amount of out of pocket expense. I have little to no capitol.
Thanks folks, I really appreciate it.
Also, do any of you invest in Ohio properties? If so, PM me and let me know what your looking for as I am currently unemployed and plan on spending lots of time hitting the streets to locate deals.


No job no money. How about credit. If like me that is not so good either. You will need private funds or a hard money lender (HML) or a partner. Most of the above will do 65% to 70% of after repair value and loan you the fix up too. Most HML 's want you to have some cash into the deal as well. Most of us work the numbers backwards to come up with a max offer. Lets use an ARV of $90,000 and 65% LTV giving a total of $58500 and less $15,000 in repairs gives you an offer of $43,500. You will have closing costs and points also and I usually subtract these too giving a top offer of $40,000. You may want to do it differently if you can get 70% but my current HML just shot down two of my deals leaving me high and dry. I am looking for new sources at this time too. I was also quoted 12% interest all along and had to close at 15% or else no deal. It aint easy finding super deals and then getting them financed but they are out there. Lot of investors looking more and more as CD rates are at 2% and stock market and others investments are low yield too. Hope this helps some

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile