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Updated about 8 years ago,
beginners rough business plan, would love some critiques!
hi BP members,
first, thanks Brandon and Josh for the BP podcast and the forum for all the wonderful information and inspiration stories. I listen to a couple podcasts a day while driving around as a homecare PT in Pittsburgh PA. I am looking to start investing in the next few months. per recommendations I have constructed a preliminary business plan.
Goal: start with flipping or buy and hold SFH or duplex/triplex and grow enough cashflow to eventually leave day job, hopefully within 5 years.
strategy: I live near Cranberry PA which is a rapidly growing area with many business in the area and major highways close and only 20 minutes from downtown Pittsburgh. there are several small communities close by that have older homes and an unbelievable amount of new developments going in. I would like to target these communities to flip older homes and possible smaller apartment buildings. the areas also have great school districts and close proximity to parks.
time frame: 1 home acquisition by year one, 3-4 by year 2 and enough to quit the day job by 5 years 10-15 rental units(?), again not sure if I will go strictly flips or rentals but probably a combo of the two. good/bad idea??
home criteria: SFH/duplex or small apartment building 3-5 units, 80-120K, 25K or less for rehabs.
marketing plan; I have found it hard to get concrete information from internet searches re deals. used Zillow, trulia, cragis list, researched on county records, etc. should I contact a RE broker with my plans and desired target homes? because I drive around all day between pts [listening to BP podcast!] I have taken to photographing potential homes that I think would be good flips, ie. worst looking house in nice area.
business team-I have some friends that have connections to RE and contractors, so I would plan on exploring those options but I figured I would network with local REI groups. also has any one used Angie's list for contractors? is it reliable?
financing- start with nest egg I built up and use home equity as needed, go with conventional financing to start.
thanks in advance for advice!