All Forum Posts by: Andy Bailey

@Bailey Kramer

Hey Bailey! Great name btw man!!

Just responding to your post here... I’m a SF investor here in North East TN. Just got started about a year and half ago... 3 properties currently, the third in renovation mode, and excited to grow!! Hope you have a great evening and if you have any questions or want to chat let me know!

Hey folks... here’s the deal.

I’m a newer investor with 3 SF rental homes. The third is currently in renovation mode and looking to refi mid December (if my windows make it in).

I started about a year and a half ago and I have a tremendous desire to grow. I do live in a smaller town feel in North East TN and deals seem few but those that hit move quickly. I work for a plant locally and I do not want to spend the rest of my life here just getting by.

So that’s the short version of my story.

My question is, should I seek to obtain my Real Estate Liscense?? I fully enjoy the game and want to make it my living and hobby. I’m curious if this will help me to reach my goal of continuing to gain passive income and retirement from the rat race of regular employment.

What are the benefits and cons to this??

Thanks ahead of time!!

@Mark Fries

Thanks Mark!

Thanks @Jason D. for the input. I failed to mention that I will be handling the labor myself. My only additional cost would be materials and a little more of my own time. I feel that just based on the additional bed and bath, opening the home up to more potential buyers, that the minimal cost of materials would probably be a win on the investment.

1st offer in on a 2/1 brick in great location with intent to flip. Offer is at 30k, will most likely land at 35k. The current rehab costs are minimal as the home is in great shape, so ~3000-4000 range. ARV should fall 65k to 70k.

I have the ability to convert another room to a 3rd Bedrm, and there will be room to add a small full bath in the new 3rd bedroom. The house has about 970sf. Would these additions bring a great enough return to spend additional funds adding them.

And the house is in Northeast Tennessee

@Andy Bailey

Now, here I am. I'm ready to pull the trigger. I've done the research, read countless BP posts from some very insightful individuals and have swallowed most of my fears. I have viewed and ran numbers on a handful of homes in the last few weeks. I have narrowed it down as a first time purchase to a 2/1 solid home; good location for same size homes, brick/vinyl ranch, built in 1940, HVAC installed already, original hard wood throughout home, roof in great shape, wiring up to date and plumbing is manageable for repairs. It does need some paint and updating but I figure that renovation costs should be less than $8,000. It is on the market as a foreclosure for $43,900, and I have made an offer of $30k. I have access to a 100% loan from a close associate with interest payments of 4.25%/month until home is sold (I am seeking to flip). I also have a 15% down 85% finance at 4.75 opportunity through a local bank specifically for REI. The foreclosure was for $59,600 and tax appraisal is at $63,400.

So recap

Market listing $43,900

Tax appraisal $63,400

My offer. $30,000

Renovation. $8,000

My question is based on these numbers, if I could guarantee a done deal at 35k, am I crazy for allowing a little time to play out with a 30k offer that may or may not be accepted or countered (this is a bank owned property)

Thanks ahead of time for opinions and advice!

About two years ago I began really searching for deals, viewing homes, and talking with local small time investors. I was ready to roll, then my flame turned into a pilot light... not out, but not burning either.

Fast forward to today; a man sized 12 year old son in middle school, a newly and beautiful adopted little 5 year old girl from China, a wonderful wife who quit her job to raise our family, and dad here working all the overtime available. Whatever it takes right!? Right... but it’s time to change course and start firing on all cylinders.

I have done quite a bit of remodel, upgrade, repair and rehab work on my own primary homes as well as my father in law's SF rentals over the last 15 years or so. I know the area, have come to learn the value in dollars spent as it pertains to a ROI, at least from a rental point of view.

Now, here I am. I'm ready to pull the trigger. I've done the research, read countless BP posts from some very insightful individuals and have swallowed most of my fears. I have viewed and ran numbers on a handful of homes in the last few weeks. I have narrowed it down as a first time purchase to a 2/1 solid home; good location for same size homes, brick/vinyl ranch, built in 1940, HVAC installed already, original hard wood throughout home, roof in great shape, wiring up to date and plumbing is manageable for repairs. It does need some paint and updating but I figure that renovation costs should be less than $8,000. It is on the market as a foreclosure for $43,900, and I have made an offer of $30k. I have access to a 100% loan from a close associate with interest payments of 4.25%/month until home is sold (I am seeking to flip). I also have a 15% down 85% finance at 4.75 opportunity through a local bank specifically for REI. The foreclosure was for $59,600 and tax appraisal is at $63,400.

So recap

Market listing $43,900

Tax appraisal $63,400

My offer. $30,000

Renovation. $8,000

My question is based on these numbers, if I could guarantee a done deal at 35k, am I crazy for allowing a little time to play out with a 30k offer that may or may not be accepted or countered (this is a bank owned property)

If you read this far THANK YOU!! And sorry for all the backstory... but it’s my story and I feel it’s important and relevant to my itchy trigger finger scenario.

Thanks @corina eufinger Yes, right now most info is good info

Reading and listening, reading and listening, repeat! Getting awesome info and totally pumped about the potential of building that PCF!! My wife and I both work full time W2 jobs in NE TN. We are looking to be out of debt except for primary mortgage at our current residence by this time next year. We have set a 5 year goal of purchasing a beach condo in a resort that we frequent on vacation every year. The idea would be to rent through the busy season and still vacate throughout the year there ourselves. This purchase would not be to acquire a great deal of income but to have a vacation home in an area we will enjoy for years to come. We are both in late thirties netting around 100k combined). I would like to obtain my real estate license within the next 12 months to focus on the experience as well as some extra cash flow while working my current job. We currently have 1 SFR we will be legally acquiring at no cost before end of the year. We also will have around 7 more SFR's within the next 8-10 years that will not require any out of pocket funds from us aside from legal fees to transfer ownership. I would like to begin focusing on flipping after summer of 2018 to build some larger cash reserves for purchasing more LTR's. I am curious to get some opinions on where to focus my attention over the next 2-7 years, i.e. Pay off current mortgage, save frivolously, seek other purchases, etc. I'm looking for some advice and direction from some similar experiences here within the BP community. Thanks ahead of time!!