All Forum Posts by: Candace Berry

@Tyler Ansell I agree. Duplexes are an entirely different monster apparently. We went with the advise of a guy that buys at least one a month in the area. It was all we could do at the time. Also, we work in SFHs anyway, so this was a "why not" for us. And now we know why not! LOL

@Tyler Ansell  We agree, next time we'll know to call in an appraiser and now have names of some as well as a great contact that was very willing to help. However, this time, we gave ourselves one week due diligence, had an unexpected trip that shortened our time more and then began to question our understanding of the 1% rule and if it really applies to duplexes - which thanks to all of you and others locally - we learned it does not. Real estate.... where you learn as you go!

@William Hochstedler  You're right. We hadn't planned to use a realtor on this one, but to post it on BP and our local TREIA. We would not want to ask a realtor for an assessment and then not use them. We are absolutely in the process of building our team and didn't feel we had a realtor we worked with before that knew duplexes in the area well enough anyway. 

We decided not to do the duplex because I asked around at one of my real estate meetings if anyone had an experienced duplex contact. They gave us a name and we spoke to him in depth. He knew the duplex, and buys/sells many in the area and explained our assessment of 140-155k was incorrect and it was closer to 90k or 120k on its best day. It would have still been a good investment to hold, but not to flip due to our margins disappearing with the new assessment. Thank you Joshusa J! (BP not letting me tag you at the moment. 

Candace

@William Hochstedler , @Tyler Ansell I'm sorry we'll miss the chance to work down the road from you! Hope your new project is going well! We'll keep an eye on it through FB. See you around!

Thank you again everyone. 

Candace

We have had a very difficult time finding a list of sold duplexes in the area. And the ones we've found have been SO varying it seemed impossible to use. For example a nice updated 2/2 duplex renting for 550 on each side sold for 289,000 and others sold for 100,000 that weren't as updated, but were 4/2s. 

We are considering renovations on a 1500 sq/ft duplex in Durham, NC that is 3 blocks from NCCU and 3 miles from downtown. I understand you price multi-family based on the rent it brings instead of the sold SFH comps in the area. However, is the 1% rule enough to decide ARV?

(Flipped homes before, never a duplex.)

Here is the current plan, PLEASE correct or comment any or all of our assumptions.

1. Purchase and renovate in 3 months.
2. Rent both sides for $800 (feel confident about this number possibly even $850)
3. Hold for 6 months to show good rental history and that it will rent for this amount.
4. Make $9,600 in rent (minus expenses of course - used BP rental calc)
5. Sell to Investor wanting turn key rental for $160,000 using 1% rule
6. OR Sell to Investor for 155,000 to beat 1% rule by a little to sell faster????
7. Should we sell it for MORE based on other numbers below I haven't considered??
8. Make money on rent until it sells (unlike flip, it makes while it waits)

Thank you for any and all suggestions. 

Candace

Here are some of the numbers from our rental calculator results if this helps. 

(This is a cash buy/reno.)

Thank you @Adam Schneider! Will do! 

:-)

Candace

Hi fellow investors! 

My parents have been able to retire in GA and want to move to NC to be closer to my sister and I. My Dad can fix anything, but no longer has the health to do so, and is looking for a fully upgraded or new home within 30 minutes of Thomasville, NC. (My sister has younger kids so we'd like them to live there instead of my more expensive area of Raleigh and my daughter is almost 16 and able to drive to see them on her own soon.) 

He fully upgraded the last home and regrets having to leave all his hard work, but of course being close to family trumps all. This will be the last home they buy, so it needs to meet requirements of later years. They are not old, only in their late 60s, but dad has a non-life shortening disease that makes him too weak to do major work anymore. 

Specifics: They need a 3/2, around 1200-1500 s/f would be big enough. They would prefer all one level or at least master on main. The master bath needs a walk-in shower. They are not looking for fancy, just durable and maintenance free. Prefer at least a half acre, more is great. Neighbors are ok, but they do not want to be on top of them. They need a relatively private back yard for quiet and a place to grow veggies and flowers. They are trying to avoid Guilford county taxes. They have been looking in Asheboro a lot online and will be coming up the end of July to physically look. ARV 140k - they will purchase all cash.

Do you have a flip in mind, or can you find one that you can do and keep the cost down while doing a good job for my parents to purchase for 140k? Major systems need to be replaced. Realtors? Do you have a property in mind? I've been trying to look but don't know the area well.

Thank you!

Candace Berry

Keywords, Lexington, Asheboro, Thomasville, realtor, flip, wholesale, investor, opportunity

@Patrick Madigan HA!!! Let's just say the value in this last flip was the EDUCATION it gave us! LOL

@Dawn Brenengen Thank you!!! We had a blast on vacation and are now hunting down our next few projects!

@Colin Perry Thank you for asking. It was 301 Brooks Ave. (corner of Brooks and Everette). We haven't given up on ITB altogether. But this one was a large, expensive home. Its like the old saying "all eggs in one basket"... we want to work on more than one home at a time and have it turn quicker. If we're working on three and one turns we can move on to another. Our thinking now - more turns, smaller individual profits, but less risk and more properties makes the profit add up faster. I hope this helps? And don't worry, it takes everyone a bit to get all the tricks of BP down. Good luck in the business and let us know if we can help.