All Forum Posts by: Allie Dickson

I think you should run the numbers with the BP rental property calculator. Follow the numbers, not your gut. :D https://www.biggerpockets.com/buy-and-hold-calculator

Thanks for this info, @Dan Mumm! I've been a residential real estate agent for 6 years now. I've recently become much more interested in investment property both for myself and my clients. My plan was to find off market deals for my investor clients. It sounds like you're saying that would be a waste of my time and energy, right?

@Justin Abdilla Thank you. Makes total sense. Your idea to receive the guaranteed $300k profit would make us sleep better at night.

If your tenant/roommate gets saavy they could just look on the county records and see that you own the property. That might make them feel that you are dishonest and then you still have to live with them.

Thank you @Justin Abdilla! Do you still think it's risky even with properties in the Bay Area getting multiple over-asking price offers within a few days of listing? In my mind it's very similar but less risky than an investor who flips property because we don't have to put up the $1.8M in the beginning. Maybe I'm missing something here?

If I were you I would call a few different property managers in the area and ask what the vacancy rate is for 1b/1b rentals. Do they have any available? Do they have a waiting list of tenants looking for 1b/1b rentals? Also, you could do a search on Rentometer for some good stats that would inform your decision. Hope this helps! :D

Thanks, Randall!! That is so helpful and you're right. Being that he's a friend I was trying to be more accommodating, but he would otherwise be dealing with a bunch of investor sharks that wouldn't be as helpful. I really appreciate your input.

Hello, Investor Pros!

My husband and I have a potential opportunity in front of us. Our friend, let's call him "Bob", in the San Francisco Bay Area has a property built in 1960 that has never been updated. My husband and Bob have been friends for years, we've never seen his home, and there have been some red flags that make us believe Bob could be a hoarder. A realtor suggested a list price of $1.7M. I had the idea to make an agreement with Bob to purchase the home from him for $1.8M with the contingency to help him go through his things and put them in storage within a month or other agreed upon set timeframe. Then we would use our $100k cash and take 2 or 3 months to renovate the property then list it. From the comps it seems we could sell the updated property for $2.2M (conservatively). I would want to write in the contract that Bob would be paid his $1.8M out of escrow from our buyer paying $2.2M. We would receive the difference between $1.8M and $2.2M for doing the renovation and helping Bob move, potentially making $300k. What do you think the best way to structure the deal is? Is this a crazy idea? Are there other stipulations you would include in a deal like this?

Thank you so much in advance for your help!! :D

Sadly, I was out of town, but looking forward to the next one!

@Marduk Mooshoolzadeh

For great ideas read Brandon Turner’s book “Real Estate Investing for No or Low Money Down”. I just did and I’m so pumped up now!