All Forum Posts by: Adam B.

You could keep putting your mortgage payment (after you've paid off your house) into a savings account until you have enough to pay cash for a rental again. Then snow ball that cash flow into another rental years down the road... and so on...

One thing to think about if you do sell your rental is the taxes you will have to pay. I don't know how much gain you have in the property, but if it's enough that taxes might offset the interest you are trying to save on your mortgage.

The formula that i've learned on this site for that particular house would be this.

$130k X 70% = $91k

$91k - rehab ($35k) = purchase price ($56k)

Nice! If you have time can you break down what your rehab will consist of and what your budget is?

Like so many others have said... nice job! I have a few questions I hope you can answer.

Going into this project, did you have a higher ARV and undercut the market a little to get it sold so fast? As you said, you had back-up offers coming in that were higher than the original offer... that leads me to believe that this was a "steal" for this neighborhood at $81k. My question is, how much did you under-cut the market, if at all?

Also, how far over the standard did you upgrade this house? I am looking at some flips that will sell for around the same price, but some of the upgrades you put in this house would be way too much for the neighborhoods I am looking at. I have read in the past (I think from J Scott) that it's a good idea to add 1 "flair" item. Maybe granite, or wood floors in the dining.. etc. Did you overkill the upgrades on this one to move it so fast, or are all those upgrades fairly standard for that area?

Again, great work... and thanks in advance.

Someone please correct me if this is wrong (I am far from an expert) but...

ARV: $95k

So, $95,000 * 70% = $66,500

$66,500 - rehab costs.

I would assume the worst, and since this house appears to not be "high end" with an ARV around $95k you can do a lot with $30k

So... $66,500 - $30,000 = $36,500 max offer.

Wow, I don't know how I would react if someone told me ubatuba would cost $25k... haha. "I said I want it for countertops... not my entire floor AND driveway... lol!!

This may be a newbie question... but if a single member LLC is not that good at protecting your assets, then how many members should be in it?

Danny,

What part of town is this property in? I have yet to flip my first house, but I do have several years in the construction business in Houston.

Also, I have dealt with NWR in the past. they sent me approx. 20 properties about 2 years ago. After doing my own research on them, the numbers came up too thin. They finally told me that most of their investors don't end up selling and they just keep them to rent out... Not really what I was looking for.

Anyway, good luck and let me know if I can offer any assistance. I look forward to your updates on this...

I prefer SFH because that's my experience. I don't have experience in multi-family. I also don't know if multi-family will appreciate that much over the next 5-10 (maybe it will). SFH may not either, but I am willing to bet that it will. Yes, these are neighborhoods that would/should sell to owner occupants in 3-6 months if priced right and rehabbed correctly.

I agree with J Scott. I would buy approx. 75 houses for about $70k each (including rehab) and rent them out... which should cash flow about $400/mo. * 75 = $30k/mo. Then, in 5-10 years when my local market is back on top sell everything for $120k/house which is $9mil. Then, put that $9mil into a low return/risk free investment and work on becomng a professional golfer :).