All Forum Posts by: Aaron Linde

Absolute favorite has been: Episode 15

However, I have enjoyed most of them and have learned something from all the ones I have listened to so far.

No real audio book recommendations.  I primarily listen to Podcasts.  When I want to enjoy a book, I go old school and read it.

Other advice?  Don't design with only you in mind.  It may have paid off for you last time, but might not the next time.  Design with a 1000 people in mind.

If my mother were allowed to pick colors for the homes I flip, she'd have me putting in Hunter Green carpet with Burgundy walls.  She'd love it, but she is not who I market to.  Neutral palettes are key.  Express yourself in how you stage the house.

I will also echo, "create and stick to your budget".  It might be boring putting in the same vanity or painting the walls the same color over and over again, but it will pay off in the end.

Welcome!

1)  Education/Investing time frames depend on so much.  You will never be 100% prepared/educated.  As no 2 projects are the same, each investment is its own education.  Mentors help and obviously BP does too!

2) Beginning out, seek the advice of a veteran, respected, and maybe even conservative realtor to help determine ARV's. Find a property and have them run comps for you. Comps help a lot - just know there are always exceptions to the rules.

When starting out, live by what you hear here - If you frequent BP, you'll often hear things like:

- Never buy a weird house

- 3/2's are often the safest bet

- Stay under $150K (depends on your area)

- Location, location, location.

I am often amazed at the shear volume of information FREELY shared here.  With a week's worth of time here on BP, I would argue, a person could be about 95% wholly educated.

3)  Contractors?  Difficult question.  I have a love/hate relationship with them.  Check the FilePlace under the Tools tab for contracts.  Typically though, spending money on a good attorney is usually money well spent.

You said it best, "I am having trouble getting past the emotional aspect of selling the first place I purchased..."

When emotions run with the property, it will NEVER be a good time to sell.  Your arguments for keeping it could change in the coming months and then you'll be angry that you didn't sell.  Run the numbers, make your decision and don't look back.

If I still had my first flip from 12 years ago, I could sell it today for 2.5X what I sold it for then.  That still doesn't change the fact that I was happy to sell it for a $40k profit and do another flip...and then another...etc.

Do your best to remove emotion from the equation.

Good luck!!

What type of investment property.  Flip or Hold?

Straight from the IRS:

Generally, deductible closing costs are those for interest, certain mortgage points, and deductible real estate taxes.

Many other settlement fees and closing costs for buying the property become additions to your basis in the property and part of your depreciation deduction, including:

• Abstract fees
• Charges for installing utility services
• Legal fees
• Recording fees
• Surveys
• Transfer taxes
• Title insurance
• Any amounts the seller owes that you agree to pay (such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions).

If it has been deemed "unlivable" - chances are, deep cleaning won't be enough.  I would guess that new flooring/drywall/paint is in order.  I would contact a remediation company or General Contractor.

Looks amazing!  Now that you look back on it, how bad did doubling the rehab costs affect your outcome?  Meaning, if it were a flip, would you have lost money on it?

Kinda like this.

IMO a darker gray would be best.  As it is a rental property and apparently individuals will need to cross over the yard to get from the driveway to the front door, stall dark and neutral.  A darker gray will hide dirt well, but still set off the white of the house/porch.

Good luck!

While I would love for interviewing to be quick and easy, my experience has been more slow and steady.  I am conservative by nature and I have a lower tolerance of risk than most people.  I would rather take the time on the front end, finding a person that will work best for me, than take a risk on someone who says all the right things.

There is some great advise about hiring people here in this podcast - 

https://www.biggerpockets.com/renewsblog/2013/04/2...

In a nutshell, Amber (from the podcast) says: 

"Sometimes it’s easier just to grab the first person cause they might sound good on paper, but without doing your full due diligence—with Susan we took, I think it was a three-part interview. We spent the whole day with her one day taking her out showing her the properties. It was down to her and one other girl and we definitely made the right decision because we took the time to get to know her and the same is true whether you’re hiring contractors—you know, sometimes it’s kind of a pain in the butt to go out and meet three different contractors at a job because it’s three different appointments and three different hours out of your schedule, but if you hire the right one up front? Oh my gosh, does it save you tons of headaches in the long run."