All Forum Posts by: Bryan Devitt

Will the new property make the cash flow equal out to what it is currently with 2 properties at least? Also remember that your mortgages will stay the same (if you do 30 year fixed) but the rent will increase every year. So even if it is a wash for now, it will make your cashflow grow that much more later. I know others on here will completely disagree with me and there is no right answer, but I am a fan of using leverage as long as it isn't maxed and if instead of the upside being immediate, it is a snowball instead.

I have clients that have dealt with many foundation issues but I don't do them personally. I just see the before and after. Everything above the foundation I have dealt with. Many things scare people off and I look at them and think "it's a half day of work and $200 in lumber". I have seen a few foundations that have needed a few repairs because they're built on crappy soil, but the "new" screw jack systems have been doing amazing work at fixing the problems much quicker and cheaper than the old methods.

IMO as long as they still cash flow with the new numbers, I would leverage everything at 80% and keep the ball rolling until I had the amount of properties I want. You can always pay them off later with the cash flow if you want, but you need the cash flow to do that.

If it is only $5k and you're buying it at such a discount that you're worried the seller will put it back on the market for much more, then close the deal and fix it after. As long as the numbers still work, foundation issues aren't the end of the world.

*I am not a lawyer*

I don't see why this would prompt a cancellation of the contract. If that was the case any time a house was sold the new owner could force a renegotiation.

Last 3 years, no. After that, yes. If they haven't learned their lesson then they'll be back in trouble within the first few years. There are a bunch of reasons people declare bankruptcy and I'm not going to ask them for the discharge papers to see who the debtors were and figure out how they got there.

If it is a constant issue then it is probably a tenant doing it and not a visitor. Pay someone to sit in the parking lot and watch who is doing it. It will take half a day and then you know who to go after.

My friends that have gone the VA loan route have all complained about how much of a pain it was because of the stupid little stuff they wanted fixed, so that will definitely help you. Good luck on your first deal, I hope it all goes great!

Sometimes you find a nugget of gold at the bottom of the ocean. Get it under contract and then scour the earth to find out what is wrong with it. You might not find anything and you could have found a good one that others overlooked for some reason.

^^ ding ding ding!!^^  Most contractors that are good and reliable are getting paid way more than what a flip budget would allow. There are rare exceptions, but that is normally because they aren't raising their prices to suit the market. if you can find one, take advantage and keep them very happy