All Forum Posts by: Bill J Fay

Networking is a great way to come across deals. 

1) Go to your local REI meet ups. Meet other investors, Agents, and wholesalers.

2) Call listing Agents that are listing 'As Is' deals in your market. 

3) Go to foreclosure auctions and meet investors that are purchasing these deals, they sometimes have deals they need to off load. 

I think this scale is a great quick math to use when estimating on the front end, but I wouldn't use it as an "end all be all". There are many factors that can swing this ratio; volume, time, price point, etc.

Here is some good reading material on Termite Damage for FHA Mortgages: https://fhalenders.com/fha-termite-inspection/

As you probably know, FHA regulations are pretty strict. When they don't allow peeling paint, they will most likely take a strong stand on termite damage. Most likely they will schedule an approved appraiser to inspect which would allow them to determine the severity of the damage and remedies needed to resolve.

Well said! 

For a flip, check your comps. Hardwood floors are almost always going to be desirable. I've found some people like carpet in the bedrooms, or if they live in basement/1st floor duplex to cushion the sound. Other than that, the buyer/renter pool will almost always gravitate towards hardwoods. 

What do the rental comps look like? I am sure you have very similar layout/style in homes in your area. The space is small but clean. A really cheap way to get more countertop space is to provide a roll away island. They can move it out of the way when not cooking, but lock it in place when they are. Something like this:
Crosley Furniture Alexandria Granite Top Full Size Kitchen Island/Cart, Gray - Sam's Club (samsclub.com)

If you are doing a full renovation to make this kitchen bigger, you may need to relocate that exterior door since that really caps your space. 

Walk the job with a few different contractors. Try to avoid ones on Google. Lean on your agent, other investors, Home Depot, trucks that are driving around town. See what their prices are and how they differ from each other. Ask questions. Tell them you are an investor and looking to scale and will keep them busy. A good contractor will want to keep you happy since you are not an end user. 

There are no HGTV shows on creative finance. People that are not interested in real estate still love to see the before and after on a home. Seller financing isn't as sexy to the average person. I do think socials like Tiktok and instagram are starting to highlight creative financing in this way though. 

Have you looked into hard money lenders or private lenders? While they wouldn't be able to do a HELOC or refi on an owner-occupied home, they wouldn't factor in your DTI since it would be a flip. With that being said, lenders will still require reserves (can use a % of retirement/stocks).

Finishing a basement is usually a great value add, meaning you will get a return on your initial investment. Make sure this is the case in your area. How much more are homes selling with finished basements? If it's a rental, how much are basement bedrooms renting for? It is all about your ROI. If you're digging concrete to add plumbing, it is almost always worth it to make a full vs a half.