All Forum Posts by: Alex T.

There are forums out there...just like BP...that go into a great deal about how to best utilize bank accounts, debit and credit cards to maximize your bonuses, cash back, etc.  thepointsguy.com, doctorofcredit.com, etc. It all depends on how much work you want to put into it. It also depends on what you're buying and how much you're spending. As a renovator of 1-2 properties a year, I spend probably 100k on credit cards every 12 months. I have a system of 5-6 cards that I use to maximize the returns. I also "churn" cards (signing up for the bonus) when I have big 5-10k+ expenses. As a lot of people have pointed out, there are cards that earn extra rewards in all sorts of categories (2-5% extra), so try to take advantage of those when available. Chase Freedom, Discover IT have rotating quarterly 5pts/$1 back categories up to $1500 spend. I can almost always buy gift cards where the rotating categories are being offered (e.g. at target, amazon, etc.), so every quarter I am basically spending $3000 to get 15k points. Now here's the next thing, ask anyone who "is in the credit card game," and they'll tell you that redeeming points for cash at a 1pt=$0.01 value is stupid...because you can buy air travel, hotels, etc at a much better value. So those 15k points, if they're chase points, I know I can make them worth at least $0.02/pt, likely more. So the 15k points turn into a value of $300+. This is just the tip of the iceberg. There are a million ways to do it. At a minimum, I would recommend getting a card that earns you at least 1.5pts/1$ on every purchase. There are 2% cash back cards out there, but for me, the 1.5pts/1$ spent is better because I value that at 3% cash back, if not more. 

At the end of the year, with a few signup bonuses, utilizing my rotating categories, getting 1.5pts/1$ on everything else, and taking advantage of special promos, I can easily walk away with points that I value at ~$4,000-5,000. But as I said, it's a lot of work, and it's definitely not worth everyone's time. Good luck.

@Mark Bookhagen What do you think the non-refundable deposit should be, percentage-wise? 

If there isn't language in your lease forbidding short-term rentals, and there isn't an HOA governing the complex, then I guess it's theoretically doable. But...I haven't seen a lease in the last 5 years that doesn't explicitly discuss short-term rentals like Airbnb, and virtually all of them say they aren't allowed without the owner's consent. As a landlord myself, I have this language in all of my leases, and I also check short-term rental websites every once in a while to make sure my units aren't offered. I'd consider legal action on any renter that I find to be short-term renting my units without approval.

@Jason Malabute I'd recommend finding the local BP forum for the long distance market you're interested in, and then mine them for information on labor and material costs. In my experience, GCs aren't going to give you much unless you have a rapport with them, or if you bring people in to quote a project with plans in-hand. Also, all markets will vary, but it's not going to be crazy different from one market to the other unless there are abnormal factors at play. And material costs are going to remain relatively consistent, so it's really just labor that you need to focus on.

@Mark Bookhagen Thanks for the advice. So yeah, the commission savings I'm not sure about because I believe at least one of the interested parties has an agent that they've been "working with." If that's true, I imagine it's going to be a normal 5-6% split between my agent and their agent. Do you think I should say that no buying agents are allowed because it's pre-market? Would my agent even do both sides for the 2.5-3%, or would they expect the full 5-6%?

Everything else makes sense. I'm still worried about subjectivity around the quality of the work...it seems easy for them to sabotage something if it's not perfect. I have a high quality of work threshold, but still, an end-user is usually going to be pickier.

Anyway, thanks again for the input.

Hi everyone. I am working on a SFR rehab right now, and I've been approached by two parties who have an interest in buying the property before it's finished. This is my third total gut flip, but I haven't considered selling anything pre-market, so I'm curious to hear everyone's thoughts. Right now, I'm around 40% done with framing. This is a big project, it's in an A+ location within my city, and we're adding over 1000sqft to the floorplan. I am probably 4-5 months from finishing. I'd like to avoid changing anything structurally so I don't have to redo the drawings and permits. What I'd be willing to do is frame it out completely and then let a buyer come in and customize the finishes. So here's my dilemma:

If I contract with a buyer for a certain price, I'd be absorbing a lot of risk for what could happen in the market over the next 4-5 months. I also like that I can work with a buyer and give them exactly what they want for finishing - I don't have to worry about making a bad design decision that isn't well-received by the market.

On the other hand, contractually, this seems complicated and risky. What happens if the buyer doesn't like the quality of the work? What happens if the buyer loses their job, needs to relocate, etc? I also worry about the fact that I'd essentially be working for the buyer.

Price-wise, I haven't gotten deep into conversations yet, but my guess is that I'd be able to get a slight premium to customize the house. Has anyone sold a rehab/new construction prior to finishing, and if so, what advice would you give me? Thanks

@Marioly Toles I have finished a few basements, but not for rentals. If you plan to use the basement as legal living space, you'll need 7' ceiling height, service from all mechanical systems, and a legal egress. That's simplifying it, but those are the main things. If you don't have 7' ceiling height, you may be able to dig up the basement floor and lower it without underpinning. Benching around the perimeter is also an option, but that'll reduce your square footage. If you need more ceiling height, my recommendation is to get a licensed contractor and engineer out to survey your site and see what's the best option. Hopefully, you already have 7', in which case your big hurdle is going to be egress. Here's some information on the requirements:  https://www.jamisonwaterproofing.com/egress-windows.html. Of course, the code does change, so these requirements should be verified by your contractor/engineer. It sounds like you have some mechanicals that you can tie into already. Once you get into framing, there's a lot of things to know about vapor barriers, ground contact lumber, mold-resistant materials, etc.

In my opinion, this isn't a DIY type of project unless you're a licensed contractor.

I agree with everyone else. The rates are solid for what you're trying to do. And yeah, can you share the lenders, please?

@Axel Scaggs And just realized this is a 3-year old post...womp, womp. But yeah, let us know what happened!

@Axel Scaggs If it were me, I would file the paperwork, serve him, and see if y'all can settle outside of court. I literally had the same issue with a landlord many years ago, and upon getting served, it shook the landlord so much that we settled for something that almost made me whole. I was still pissed, but at least I felt vindicated. Of course, if your landlord wants to go through with a court appearance, it sounds like you'll be in good shape to win. And my landlord threatened a countersuit as well...my uncle lawyer told me it was nothing but a scare tactic, and any reasonable judge would throw something like that out without question. Good luck - let us know how it turns out.