New to Real Estate Investing and BP

[Bobby Cooksey]

Hi Everyone!  I'm Bobby Cooksey posting from Honolulu, Hawaii.  

I'm new to the Real Estate world.  I've been around it by working in the lending industry for 8 years as a loan processor.  Also worked in Escrow and Title as an assistant.  For the last 9 years I've been in the Financial Services industry as a business processor.  Real Estate is where I want to be, so I've been learning a lot from the BP podcasts and the forums.  Practicing my analyzing deals, and telling friends and family what I'm learning.  

In sharing this with my uncle in San Antonio, TX, he told me that one of his customers just inherited his mom's home in SA but does not want to own the property and wants to sell it. My Uncle told me his customer is thinking of selling for $130K. The 4bd 2ba with swimming pool, per the tax assessed value is at $180K. Needs about $25-30K in rehab work. Right now, I'm looking at this as a flip. I'm still trying to get info to analyze this, but how do I start? I may partner with my Dad who has a HELOC to get the 20% down (I have $10K and my Dad can come sin with the rest). Is it okay to do this as a DBA just to start or do we set up an LLC? Any advise on my specific question, and anything else would be appreciated. Thanks.

[Tarik Turner]

My first suggestion is to find out the fair market value of the home before you take that 130k Price tag. Maybe get a desk appraisal done on the property. if it is worth only 180-200k the numbers may not work 130k + 30k rehab + closing Costs+ Holding Costs

You don't want to spend more than 70% of the ARV (Including rehab costs)