All Forum Posts by: Chris Stone

The appraisals most see are bank appraisals. I never got my license, but was an apprentice for a year. Decorating, curb appeal and short term improvements that help sell a home are not allowed. Square footage can be misleading. Some appraisers will count a well designed 2000 SQ ft home with a 1500 sq ft home (with a "brother in law six pack , weekend addition") that is thrown on the back of the home the same. 

An appraisal is more useful in my part of the country (Albuquerque agents are very fond of reducing their opinion of value by only cost per square foot. You'll hear "this neighborhood goes for $189 a foot or $200". They don't take into account condition or that larger home almost always have a lower cost per square foot as smaller homes in the same area.

So, "it's complicated"

Thanks, Guy for the explanation. The only basements I've seen in Albuquerque are in the Nob Hill and Spruce Park and Downtown neighborhoods. The lots usually have a slope allowing windows in the back.

There are split levels in the NE Heights, but not so many.

An hour and a half wouldn't worry me. Now, if the property were in poor shape, it would be different. I have a rental an hour away and it causes me no grief. The important thing is to have local workers you can call. In my case, I have a handy man that trusts me to mail him a check to get things done. 

Why is the commission and closing so high? Doesn't the seller pay commission? 

All States have their own rules regarding the path to becoming a broker. In New Mexico, it is two years. There is no requirement to have a certain amount of closings. Several states require that you close a certain amount of deals.

I have my two years, but prefer to work with a brokerage. They only take a small cut and pay my errors and omissions insurance. 

I buy pillow protectors for all my pillows. No one wants to use a pillow with someone else's sweat. That way, I can go almost a year without replacing pillows.

Unless the home is a great deal otherwise, I would pass on the pool home. Money can be made in Rio Rancho, but there is so much inventory. You have to watch every penny. I'm a Realtor (and investor) and I disagree that Realtors can't form a good value opinion. Appraisers mostly provide values for banks. They have little leeway to value what makes some homes fly off the market and some sit. An active informed realtor will know what the competition is and what will sell in a particular neighborhood.

Well done! I did a small flip in Rio Rancho.  The place didn't need more than cosmetics and ne carpet, but we didn't make as much either. Congrats!

Thanks. I was told I would need to put my rentals in an LLC. I don't want to do that because it's hard to get financing that way.

Paying regular income tax on a few flips a year is not a problem for me. I'm getting to the age where I realize some extra SS earnings can't hurt!

Did I spell the veggie right?

I know they say to ask your CPA. We have a ordinary tax accountant. He's not sure. I am a Realtor agent making less than $25,000 yearly . We have some nice rentals bring in a net of $25000 a year. We did our first flip and made $15000.  Easy, peasy. A few weeks of work, at most. Now I hear we may be designated as "flippers" and ALL our rental income and sales might be designated as ordinary income. So now, I'm a little wary of doing another quick flip.

Any real life experience with this?