All Forum Posts by: Bryan R.

@Aaron Ramm

@Shahriar K.

Provided that your hire a licensed and bonded GC.

@Steve Vaughan

Yes, short term flips are generally going to be taxed at your tax bracket.

Just to be clear, from my reading of the amended language, the new requirement is that you either

1. Be a licensed contractor

or

2. Hire a licensed contractor

@DeWayne Mann

@Brian Fouts

Everyone else is pretty down on this property, so maybe I'm off base, but the numbers being thrown out seem really high to me. 

Obviously it depends on what is meant by "gut". But from the description it sounds like we're  talking mostly interior work and if the framing is mostly there then we're just talking:

Rough ins, insulate, sheetrock, and then shell finish out - millwork, cabs and tops, flooring, fixtures, paint.

Saying it will take 200-300k to finish out a 300k house seems a bit overly conservative to me. All that being said I think a 100k spread is a bit thin for a gut rehab.

Perhaps @Casey Fares could post a more detailed description and/or some pictures?

I'm striking out on finding that combo. Only places that offer it are custom or semi-custom which means $$$ and 4-6 week lead time. All the RTA places I've checked only offer up pre-finished. 

I'm hoping one of you might know of someplace. Paying freight would probably be worth it to me. I've found one or 2 places online, but don't know anything about quality.

You have to pull permits, that is just the cost of doing business. I see lots of guys get away without them, or just pay the fines and figure that is less cost than getting permitted every time, but for me if I'm doing anything significant I'll pull a permit. If it is truly only cosmetic work I may not but anything electrical, plumbing, HVAC, structural, is getting permitted.

From that picture looks like you got caught out by Tacoma Power for no permit electrical work. Now imagine you did no permit electrical work and sell the property to a family, house catches fire and burns down and a child dies. To me that is 1000x worse than the additional cost of doing permitted work. I like sleeping well at night, being fully permitted means I don't have to spend the next 20 years worrying about lawsuits quite as much.

To add on to what the others are saying I would suggest that a buyer who has no money for closing costs nor down payment isn't a serious buyer.

Asking for down payment assistance from seller is a bit of a red flag to me. If I were to continue the deal I would make sure to thoroughly vet them through a mortgage broker I trust.

Alright google is no help. Can someone tell me what BRRRR stands for? Only thing I can think is Buy-Rehab-Rent-Renfinance-Repeat?

@Nicole S.

I'd take a hard look at the numbers. You're talking about spending a lot of money to build a rental, money that could likely be put to better use elsewhere. I would consider some other options. Maybe exiting the property entirely, or doing a rental rehab.

@Wendell De Guzman

I'm a little confused by this. You're counting anticipated profits not realized yet?