All Forum Posts by: Ali Dawood

@CJ M. 

Appreciate the feedback. Your deal with the duplex is kind of like what I'm thinking a deal could look like. I agree with what you said about an investor valuing their time saved from not having to rent it or rehab it - that's where the premium price would come in to play. What I'm figuring out is that for the vast majority, especially here on BP, it won't be a good deal, but for someone with no time, no interest in rehabbing/finding tenants, and who has some cash saved up it could be just what they're looking for. Like I said earlier, I'm just doing my due diligence before making any financial commitments. 

@Anthony Rosa

If I kept the property with the tenant and did a cash out refinance - would that be considered the BRRRR method that I've been reading about here? So basically I save money once, say $100k, and just reuse the same cash over and over?

Wow, thank you all for commenting. I learned a lot reading through your responses! I think the winner is -- don't do it! haha

For those who are curious and/or upset with this post, I have no deal in place, no buyer or seller - this was just a hypothetical question where I wanted to get some information and learn a little bit about the mindset of RE investors. That's what this forum is for, right? You guys have all the experience and I have none - for now. So I figured what better way to learn than to post a question here and read the feedback. Again, I appreciate the responses - keep it coming if you have any other advice or comments!

I’m finally planning on making my first jump into real estate investing and I plan on starting with a fix and flip. I know this sub forum is for rental investors/landlords. The reason I’m posting here is because I want some insight from this group of investors.

I know this isn’t a new idea, and there are some big groups already doing this, but I’d like to purchase a home, rehab it, put a renter in it so it cash flows, then sell it all as a turnkey rental to an investor like you.

In the process, I would consider raising the price of the house compared to similar homes for sale in the area because 1. The house is rehabbed, 2. It has a renter in place, 3. The house cash flows

Now, as the title of this post states - Would you buy a turnkey rental house like this that has a renter and cash flows, but is 15-25% higher in price than other houses in the area?

Please comment on why you would or would not.

Jason Bott I would like some info about it as well please. I know there are several options, but I just need a place to start. Thanks!

First and foremost, I hope everyone who was in the path of Hurricane Harvey is safe. My brother is currently buckled down and waiting out the storm in downtown Houston. Once the storm (or any other natural disaster) has passed, how do you handle the damage to personal and invested property? Is it full rehabs for all property, depending on damage? Are there battles with insurance companies to pay for the damage even if you have flood coverage? What if you don't have flood coverage?

Sellers market, buyers market, market correction, etc. I am new to investing and have read several of these terms throughout this site and others regarding when to buy, when to hold, when to invest, when not to do anything. 

Am I too naive to simply ask: "What's the big deal?"

The reason I say that is my understanding of RE is that the trends go up and down every few years. Sellers market right now, buyers market in a couple years, then back to sellers market. I know we can't predict when this will happen but since we know it will happen why does it matter so much? I know there are ways to make profit in either market with varying strategies, so why are investors so worried about it?

Not looking for a right or wrong answer here, just varying views so other new investors and I can be enlightened. 

J Scott I have your book on flipping houses and will be buying your other 2 books. Do you think there will be any Labor Day weekend sales/discounts coming up in a couple weeks? :-)

@Nikolas Ferreira Sounds like it's not all fun like they show on TV, huh? haha What's the conversation like for your backup GC's? Do you just let them know that you're currently working with someone else and if it doesn't work out you'll be in touch with them?

Thank you for your replies. I'm glad to know that rehabbing will be feasible and profitable on a part-time basis. 

When it comes to project managers - how are they typically paid? Flat fee? Percent of selling price? Do most project managers work on multiple projects at the same time - meaning working with me and another investor's project at the same time?

@Nikolas Ferreira Sounds like you guys had a great 8 months! I have been reading some sad stories of contractors leaving projects mid-construction lately on BP - how did you and your partner determine which contractors to use for your projects?

@Mateusz Prawdzik Thanks for the advice. And I'm definitely planning on learning as much about rehabbing as I can for the rest of the year. I have J Scott's book on flipping houses, I need to order his estimating rehab book, I also have the book called Flip, and I bought 3 house flipping courses on Udemy for $10 each. Some resources may be better than others, but I'm definitely all in! If you have any recommendations please let me know.