All Forum Posts by: Andrew Halbert

@Angela DeBorja As most others have said, yes you can but you absolutely need a good GC. I've done a dozen flips while working full time. I have a family and kids and 14 rentals. It doesn't have to take a ton of time. But it all comes down to the contractor. Do not underestimate how difficult it is to find a skilled, reliable contractor. We all have horror stories from using the wrong ones.

This is exactly why I am not rushing into a flip. Family is always first and I can not take on a flip with my other rental right now. Right now I have 50% of a team assembled to do a flip. A bad GC could devastate me right now.

remember, this is a marathon, not a sprint. at least for me

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Great question. My wife and i have been throwing this around since we're ready for buy and hold #2. Thinking about doing a flip, but a little intimidated by the process and lack of time

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Looking at Buy and Hold # 2. Southeast Michigan market.

The area's I'm most interested are St. Claire Shores, Grosse Pointe, etc. I am looking for another 3 and 1 SFR. Mostly I want to stay away from Roseville, Eastpointe, etc.. I really like certain areas of Warren, which is where property #1 is.

I really just don't know much about those areas I listed above, (i.e. The shores, Grosse Pointe Woods/Farms etc..

0 Votes

Originally posted by @Joe Villeneuve:

@Gina Dovel I think you're heading in the right direction, but you're thinking old school and placing limits on your cash power this way. Your goal of using the cash flow to pay your new mortgage on you residence is a good idea, but it should be accomplished as part of the plan...not the main goal. Here is what I would suggest:

1 - Focus on repeated use of this $150k, not just a one time use (as you suggested for paying down your primary).
2 - Use the funds to buy a series of cash flow properties. You will refinance each of them, using the funds from the refi to buy the next one.
3 - Repeat. This way, that $150k should have an unlimited lifespan.

I can give you a current example here using the market I know here in SE Michigan.

Rental Profile: 3 Bed/1.5 Bath; 100 sf ranch: Bank Property
CF (w/PM & refi) = $325/month; Cost all cash = $ 50,000 (w/rehab); ARV = $72,000

Steps -
1 - Buy/Rehab property
2 - Place tenant & refi within 2 months at 70% ARV = $ 50,400 (fees are less than $400)
3 - Use refi cash to repeat on next house, and so on and so on, and so on, and...
4 - Each repeated use of funds (the same funds) = a rental left behind @ $400/month
5 - With $150k, you could be doing this 3 at a time, so your $150k could be = $1500/month per use.
6 - 3 uses per year generates $4500/month/year, and...
7 - You keep going.
8 - Another great part is if you look closely, you are never actually spending your $150k since you keep getting it back after every refi. Refi the last 3 houses, get it all back, never having spent it.

LOL

How in the world could someone ever get financing on all these refi's. DTI anyone???

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Originally posted by @George P.:

Originally posted by @Matthew Harrison:

Originally posted by @George P.:

I have 8 or 9 in livonia.

What type of rent are you bringing in? Did you have to find great deals on the homes to make the number work?

lowest is 1,025 with Clarensville schools. highest is 1,350. I got all these below 80k.

What did you have to put into these to get them ready? what is your cash on cash ROI?

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I was just talking with @Christian Hutchinson about this the other day. The market is weird right now.

Stuff is going for full price and even above asking price in B, B- areas.

I just lost a good deal on a small place in Fraser. I saw the value immediately and offered full price with normal conventional financing.

I lost to a full price offer, all cash that was presented the same day apparently. The majority of the listings I am finding and the ones my realtor is sending me just stink. Margins are not there. Even bank owned stuff isn't making sense. Don't get me wrong, there are deals, but it's slim pickens. I am currently concentrating on north warren, sterling heights, Clinton Twp, Fraser.

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Welcome! This place has been a huge help, not sure where I would be without it. Lot's of great Detroit'ers on here. I've learned a ton from @Christian Hutchinson

I've found the download forms section of BP to have some incredible pre-made templates that I use today. It does take time to really understand what all these numbers mean, but be patient, and don't get scared.

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I would supply it all, Why not? How much is that really going to save you if you don't? Decent used appliances can be found anywhere for cheap. In my market, single family homes always have the appliances supplied. We even supplied a microwave. I like things being complete and feel that it gives me an advantage over other properties a qualified tenant may be also considering.

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Originally posted by @Joe Fornasiero:

@Andrew Halbert what city is your rental in?

North East Warren,

Borders Sterling heights and Fraser. Warren Con schools.

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Originally posted by @Dave G.:

@Andrew Halbert

Hi Andrew, Congrats!

May I ask what rent runs up there? I'll be moving in Dec to the area of Brighton, Michigan and Trulia has rent estimates around 500 - 700/bed depending on East or West of Grand River Ave. All the apartment complexes I've looked up are damn near $1k.

Whats rent really like up there?

I had people lining up at my door when I first posted it at $1400. Single family homes greatly depend on the school district. My rental is a renovated 3 bed, 2 bath with a full (unfinished) basement. @Christian Hutchinson can probably elaborate more if he checks this. He's got a very good view of this area.

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All Forum Posts by: Andrew Halbert

Andrew Halbert has started 21 posts and replied 136 times.

Post: Doing 1st Flip with a Full Time Job

Post: Doing 1st Flip with a Full Time Job

Post: Good places for second property in Southeast MI?

Post: If you were just starting out and had $150,000 to invest in real estate where would you begin?

Post: New investor in metro detroit

Post: Sellers market in west Michigan

Post: New Memeber From Detroit

Post: Refrigerator, washers, and dryers...include them or not?

Post: First Tenant signed! Turned former primary residence to rental

Post: First Tenant signed! Turned former primary residence to rental