All Forum Posts by: Ben Tilbury

Hey Jon, I understand your frustration with our current market and the numbers are tight for cash flow but there are deals out there if you catch them at the right time. I'm also very familiar with the AZ market as one of our real estate teams is based in Phoenix and I also am currently looking for properties there for myself. Shoot me a PM and tell me more about what you're looking for and your price range and your financing stategy and maybe we can find you something soon! Either way I'm always looking to connect and meet other local investors so I look forward to getting to know you. 

Hello @Tim Kunz, yes people are definitely flipping in SLO and surrounding areas the question is if the numbers here make sense to you coming from out of town. We don't have the housing inventory that Sacramento has, so therefore "deals" are even harder to find and are usually being taken by those who are doing the most business flipping in this area or being over paid for by owners who intend to occupy and renovate themselves. The median home price in San Luis Obispo is currently $707,267 as of today so the barrier to entrance is rather high as well but it is still doable. There's definitely money to be made but the best option is finding off market properties or finding a property with a big enough lot to add living space to. There aren't many properties going at auction these days and there are literally only a handful of probates and short sales on the MLS currently. What kind of properties have you been flipping in Northern California? Will you be buying these properties yourself and doing the work yourself or are you looking for partners and funding? Feel free to PM me too, I'd love to help you in any way I can, or show you around once you move here. I have a lot of family in SAC and I'm originally from Discovery Bay up on the delta so I love NorCal as well.

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@Binod G. I'm very familiar with those homes and they are in a decent area, really there isn't a bad part of SLO but there are more desirable areas depending on whether you want student renters or a family. No the cemetery will not affect the value since it isn't that close but the thing that is closer is the city sewage treatment plant and homeless shelter (google 40 Prado), on a windy day you may get some not so pleasant smells in that direction since the wind blows southeast mostly through the Los Osos Valley wind tunnel. You said you are "betting on appreciation," which will only work if your strategy is long term holding since you'll be buying at the height of the market. Chances are there will be another downturn in the market before you'll see a large increase in appreciation since real estate is a cyclical market and we are due for a shift. Can I ask why you are limiting your search for only new homes? 

Wow @Max Gradowitz, @Allison Escovedo, @Matt Owen, thank you guys for all the helpful tips and numbers! It's so true what they say about BP, there are so many helpful people on here who love to see and help others to succeed. I would love to look at that spreadsheet you were referring to if you can send it my way. The 203K loan is a great option which had slipped my mind. The main issue for me getting any traditional funding is that I haven't been at my current job for 2 years and I don't make enough at this current job to probably even qualify so the loan officers I have met with say I would need a cosigner. So I'm leaning towards the JV or hard money on my first property flip until I have built up enough cash flow to fund my own projects. But this early in the game I'm all for partnering and networking as well so I'm able to meet as many people in the industry as possible. I agree this rehab could easily be between 40-80k depending on the interiors and leak damage. Also it would depend on if I went in and fully rehabbed each unit instead of the bare essential repairs. I called the local Wholesale Roofing place and they gave me a new roof quote of $19,250 which was on the high side of what I was originally thinking. It's cool that they are able to now look at a properties roof from Google maps and be able to draw up a quick estimate though.

@Allison Escovedo FHA would be the way to go if I could qualify, then I've heard you can roll the 40k renovation costs into the loan so technically....I could cash flow the property even on 3 units while living in the vacant one. Even with the vacancy factor it could be a cash flowing property. Its upper North East Bakersfield area, north of 178. It seems as though this property could qualify for the 2% Rule correct?

@Allison Escovedoundefined

I was hoping to find someone to JV on this one, they bring the cash for the property, I fund and manage the renovation for a 50/50 split of profits at the end. The other option would be doing the BRRR method if it turned into a buy and hold to build the portfolio.

I would try to finance it using an FHA loan but I haven't been at my current job for 2 years so I won't qualify. Sometimes it can be discouraging trying to get started without a ton of money...but I won't let that stop me.

@Allison Escovedo

It's in Bakersfield. Which specific economics are you referring to? 

If you're an experienced investor from Bakersfield or Taft area I'd truly appreciate your advice, if you'd like to joint venture on this project I am also open to that.