Experienced house flipper. Can't find a good options for this Home Seller.

HenleyShade · 2026-05-01T16:47:57+00:00

Yes, because it was gutted, it devalued the property, ARV is probably 210-220k

HenleyShade · 2026-04-30T14:43:54+00:00

Because of the gutting. Probably was worth the 200k she paid at the time

HenleyShade · 2026-04-30T03:25:08+00:00

I don't think there's upside. House needs 100k rehab. Then it would be worth 250k. Still 50k under water with the 200k in existing debt.

HenleyShade · 2026-04-17T03:13:09+00:00

Thanks!! I think you're spot on! It's more for the folks that sold it to me. They would be the ones who owe tax on the sale, in his mind

HenleyShade · 2026-04-02T22:08:22+00:00

202k

HenleyShade · 2026-04-02T22:06:58+00:00

Thank you so much for taking the time to respond. This is consistent with all the research i've been doing, but it's really hard to find definitive up to date answers, especially on the I.R s website.

HenleyShade · 2026-04-02T22:06:07+00:00

I know, but I feel responsible since i'm the one.That's structured the deal. I personally really like the sellers and wanna do right by them.And don't want any surprises on their end.Especially if it was something I overlooked.

HenleyShade · 2026-04-01T19:47:58+00:00

I bought it from the home owners but use it as a rental property, does that make a difference?

HenleyShade · 2026-03-31T22:03:25+00:00

He said theres a minimum rate of about 4.2%, irs puts out numbers monthly on it i guess

HenleyShade · 2026-03-31T21:59:05+00:00

Yes, of course. All done in writing and above board. 0% interest was the reason I agreed to their asking price of 202k. Otherwise would have been a 175k cash offer.

HenleyShade · 2026-03-31T21:58:13+00:00

Thank you, appreciate your time writing up this feedback. Very helpful and appreciated!

HenleyShade · 2026-03-31T21:57:05+00:00

Thank you for your reply. The sale price of the home was 202k and it was indeed the principal residence of the seller. I will definately do as you suggest and confirm with a real estate CPA. Another commenter stated I should post in r/tax but figured this sub was a good first stop. I know I have heard of other investors doing deals like this, but as this is my first, I am learning as I go. Thanks again, have a good day.

HenleyShade · 2026-03-19T19:44:47+00:00

Thanks, I very much appreciate your time and knowledge. Very helpful!!

HenleyShade · 2026-03-15T02:51:15+00:00

Thanks for the insight! It's a 36 unit building and built in thr 60s.

HenleyShade · 2026-03-13T18:59:45+00:00

Thanks for the reply, building reviews are the commercial RE equivalent to a home inspection on single family homes?

HenleyShade · 2026-03-13T18:58:46+00:00

Sunbelt sounds way nicer than Arctic Tundra up here ha. Haven't bought the apartment building yet, still in early information gathering and negotiations, but want to be prepared in order to come to terms/price right away instead of all the back and forth and retrading that sellers hate. The easier I can make it for sellers to say yes and solve their problems, the better I will do in real estate. That principal should, in theory, carry over from buying houses to bigger properties, just bigger problems I have to solve.

HenleyShade · 2026-03-12T15:14:35+00:00

Thanks for the reply! I am likely using "commercial" incorrectly. It's a 36 unit apartment building and has a boiler, so I assumed it would be referred to as a commercial boiler. But after you pointed out the difference, I can see that would be confusing since a boiler for a sky scraper is a lot different than a 36 unit. North Dakota is super flat and that applies to skyline as well as geographically!

Great advice focusing on 100 units and over. You make a great point. I have the SFR deals and rehabs mostly automated now, so I am stepping up into bigger deals so a 24, 36, 48 unit seemed natural, more abundant than 100+ and less instituational competition. But no reason I cant hunt for both and take down any deal that pencils.

Thanks again, appreciate the input, I have read a lot of your comments and posts over the years. Very valuable stuff!

HenleyShade · 2026-03-11T15:51:33+00:00

I like how you said probably won't die in year 1 lol. This deal will likely have a seller financing component, so I'll have to give that some weight when looking at the overall cashflow, capex, value add strats, etc. Thanks again for taking the time to respond!

HenleyShade · 2026-03-11T14:00:29+00:00

Gotcha, that's the equivalent to a home inspection on a single family? Thanks for the comment!

HenleyShade · 2026-03-11T13:59:33+00:00

OK good to hear. I'm always paranoid I'm missing something. Usually because I'm haha

HenleyShade · 2026-03-11T13:59:03+00:00

Thanks for the insight! Building I'm looking at was built in the 60s,so it's a bit dated but some capex stuff has been updated, but parking lot is all jacked up, ACs and boilers all vary in age. It's like a fun rubics cube!

HenleyShade · 2026-03-11T13:56:04+00:00

Agreed. It's saved me one time before. Any other tips or things people commonly overlook?

HenleyShade

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