All Forum Posts by: Ben Sears

I'm currently looking at two potential rental properties but having trouble running the numbers and developing a system to determine which is the better deal. So I turn to the experts at BP!

Property 1

980 sq feet with an unfinished basement. 

Listed for $80k but would lie to get it around $60k. Some potential for natural and forced appreciation. 

Likely rent is $600-$700/month with a $450-$500/month mortgage on a conventional 30 year. 

House needs approximately $8k in work but is currently rentable. 

Property 2

950 sq ft with upgraded utilities, electrical, plumbing, AC. 

Listed for $32k and held by an investment company. Little to no appreciation is expected in the particular location. 

All cash offer and the property is currently rented for $475/month. 

What is the consensus? Been a flipper in the past but never a landlord so this is still new to me. 

Just wanted to throw in my two cents. I'm from Virginia and became a GC about 5 years ago. I was a typical college educated, upper middle class kid with a decent job. I got into it through flipping houses to be honest. I'm a pretty handy guy and had completed most of the work on my flips myself. I subbed out licensed work such as plumbing and electrical. When I became a GC, I got all of the books, took the test, did all of the formal licensing/insurance stuff, etc. I hit the ground running doing some small jobs that I knew how to complete and subbed out a LOT of work. Five years later, I have a full schedule and have done several complete SFH remodels for clients and tons of kitchens and bathrooms. Honestly, I love it. I have a good job but being a GC has given me tremendous benefits. My advice would be to go ahead and get your license. Use your contacts that you've made through real estate to find some GOOD subs. You'll go through plenty before you find the ones that will stick with you. Be honest, pay yourself, and don't screw your clients or subs. Word travels fast. Good luck!

We had mini splits installed in our basement due to lack of ceiling height for ductwork. We love them although they are generally only efficient for heating the immediate space. They are however far more efficient than the wall unit you have now I'm betting. Make sure you get several quotes on them to get the best deal. 

Edit: I see you're in Norfolk. We're outside of Richmond and paid somewhere between $1500-2000 per unit as I remember. 

Hey to the BP community. Finally going out on my own after flipping 8 or so properties with my dad. Just got a conventional mortgage and am getting ready to make an offer on a SFR. I'm a licensed contractor and am slowly learning the business side of things. Just wanted to say hello.