All Forum Posts by: Byran Parson

I flipped a duplex (just one side).  Bought it for 55k in 2008 (market was too high at that point, so i paid too much).  I put 20k into it.  I got it into rental condition and I've rented it ever since.

I took a piece of crap place, bought it for 15k.  Put 10k into it.  Again, rented it out until I got sick of it and sold it.  

My primary residence I bought for 75k.  I put 35-40k into it.  Still live in it.  I completely flipped the house, it looks really nice now.  

Anyways, I haven't done a complete flip.  It's a different story, and thats my concern.  

I have no debt except for my house.  Have about 80k in equity and owe about 60k.  I don't want to mess around with borrowing against my primary house, unless I had to for emergency.

So I'm currently a teacher, 36 years old.  My wife and I are getting to the point where it is financially possible for me to do something else for the rest of my career.  I've been teaching for over 10 years and frankly, I'm ready to move on to something else. 

I have flipped 3 homes in my life, two became good rentals.  

I have 50,000 dollars saved (cash) and also have a paid-off rental property that I can get a HELOC on--about 50k available for borrowing.

Most of my local market (I live in a rural area) are homes between 100k-175k. High end homes are 200-300k. Which means my purchasing price for alot of these middle range homes would be around 30-80k. ARV would be between 100-175k.

If I have 100k available for use (as mentioned above), and I plan to flip 3-4 homes per year, do I have enough money?   (Assuming the average home being flipped, using the numbers I mentioned above.)

My  plan is to do the flipping myself, and hire 1 employee.  I will also use contractors on certain things, but that won't be very often.

Have any of you taken this leap?   What do I need to be thinking about?

I'm trying to sell a SFH worth 35k. It's a 1600 sf house with 4 bedroom and 1.5 bath.

I've had three buyers fall through and I'm running out of cash on that property to throw around.

A guy has been calling me for 6 weeks about renting to own.

He's offering to give me 2k downpayment and 900/month rent.  The rent for the house is normally 650/month with the tenant paying all utilities.  

He is a contractor who has been in business for a few years and makes over 60k a year, on average.  Problem is that he has no credit becuase he never uses debt, so he says.  

I am going to run his credit and criminal background but here's my general question:

If I do rent-to-own with 2k down, I could apply the difference between 900 and 650 toward his mortgage.  This would be 250/month for a whole year, which would be 3k.  So theoretically, I make out really well on this deal.

Second question, can somebody build enough credit in 12 months to buy a property?  And do buyers usually bail out on rent-to-own?

Also-who pays for repairs, normally, under rent-to-own conditions?

Any info is greatly appreciated!

So I can, indeed, do renovations if the place remains habitable.  So can I file an eviction with the courthouse if I accept rent for another month?  

Gave my tenant a 30 day notice to vacate.  We are 25 days into the notice and she says she hasnt found a place.  I am going to file an eviction with the courthouse in 5 days and go through that process.  

The reason I gave for eviction was for "renovations and selling the house."  We are well beyond the one year lease and are currently on a month-to-month basis (per the lease which says anything after one year is month to month)

Would it be legal for me to enter the residence and start renovations on day 31?  The lease says I can enter the property at any time.  

Also-as part of the renovation process, I'm planning to sell the kitchen appliances.  Can I do that on day 31?  Would that be troublesome in court if i did so?

I guess 1600 for 10k invested isn't too bad.  You're right, that's 16 percent.  The market cannot produce that.  

So I used this calculator:  http://www.goodmortgage.com/Calculators/Investment...

I used the information from one of my properties.  50,000 purchase price.  5% interest for 20 year loan.  650 rent.  2 % home appreciation per year.  2% inflation rate.  Property taxes 750/year.  Homeowners Insurance 350/year.  

While using the 50% rule (meaning that the expenses would be 325/month)...

My net worth increase is only about 1,600 per year.  

All this work for 1,600 a year?!!

What do you figure your net worth increase is for a SFH rental property?

I definitely appreciate all of the insight.  @Kyle Grimm How in the world did you acquire 7 properties from age 18-22?  What kind of day job did/do you have???!!!

How do you guys use Buildium for tenants that don't have checking accounts?  I have a few that use only money orders because they don't have checking accounts.