All Forum Posts by: Chad Tate

Excellent opportunity in the highly sought after Downtown Grapevine Historic district. Currently a 2 bed 1 bath fully demo'd interior with city approved architectural plans to add a master suite bringing the square footage to roughly 1,940. ARV $475,000. Walking distance to Main St with dining, entertainment, Tarantula Train, The Palace Theater, art galleries, etc. 5 minutes from DFW Airport and easy access to Highways 114, 121 and 635. Excellent Grapevine Colleyville ISD. Much Revitalization in the neighborhood with high demand and new construction going for $650,000+. Call for more information.

361-877-6944 or,

817-881-8031

Excellent opportunity in the highly sought after Downtown Grapevine Historic district. Currently a 2 bed 1 bath fully demo'd interior with city approved architectural plans to add a master suite bringing the square footage to roughly 1,940. ARV $475,000. Walking distance to Main St with dining, entertainment, Tarantula Train, The Palace Theater, art galleries, etc. 5 minutes from DFW Airport and easy access to Highways 114, 121 and 635. Excellent Grapevine Colleyville ISD. Much Revitalization in the neighborhood with high demand and new construction going for $650,000+. Call for more information.

361-877-6944 or,

817-881-8031

@Brandon Paylor

Welcome aboard Brandon.  I'm new here too and am also struggling with the guru dilemma.  Definitely a wealth of information here on BP.  Good luck!

@Dave Carpenter, thanks for the tip!  I know I'll make mistakes, but I'd rather not make silly mistakes on my first deal by not taking advantage of this awesome resource and posting my questions.  I'm not sure why the property sat vacant, but I'm almost certain no utilities are on, so I'm not sure how the GC would have even been able to test anything.  Thanks again!  Oh, and I'm impressed by your bio!  God bless!

@Frank Jiang, once again, you're telling me what I already knew in my gut, so thank you.  You're right, he's not my friend, but seems very excited for me and this potential deal.  Maybe he's more excited about what this deal will do for him!  He wasn't the one sitting on the house for a year; he just closed on it last week, so the public records aren't updated yet to see what he paid.  But again, as long as my numbers look good, I guess it doesn't matter.  Thanks again!

@John Thedford Thank you for the reassurance!  The way I figure it, if/when I go to sell, the buyer will most likely get one and then what will they find for which they'll want me to payr???  Or even worse, what if the AC goes out during the first x months since the electricity wasn't on to test it.  After seeing the first few responses, I'm feeling a little silly for even asking...but it's nice to get the reassurance that my initial thoughts were correct.  Thanks again!

@Frank Jiang It's a relief to see you say that. I really knew that was likely the answer, but looking at some older posts on the subject of inspections, some have made it seem like it's optional to take out as a contingency in order to get the deal. I just personally don't feel comfortable with that, especially being my first deal.

@Ralph R. I thank you too for affirming what I felt was the correct answer.  He is a friend of a friend and I really think he's trying to help and push me out of my analysis paralysis, but I just felt uncomfortable about it.  I know he's making a pretty good cut on the price of the house, so I'd really like to know what he paid for it, but I guess it's none of my business as long as I do a proper analysis and make sure it's right for me  (that's a whole other discussion, as I'm still new to BP's worksheets).  You mentioned not to buy until I know how much it cost to rehab.  Do you ever trust a rehab estimate from someone you're not familiar with.  If not, I'm wondering how people do out of state deals.  Regardless, I'm anxious to do a deal, but I want the first deal to be a positive experience.  Thank you both for taking the time to reply.

Though I've researched this topic, many of the posts were not only older but had mixed oponions, so I'd like to raise it again. I'm a new investor working on a possible first deal. I'll be buying a buy and hold property 2 hrs away from another investor who has presented all his projected numbers to me. These numbers included an estimated rehab from  GC he has used for several years. I noticed the contract said as-is with no option period. When I asked him about doing an inspection he said that is what the GC did and that no inspection is necessary. I realize a GC is not necessarily a licensed inspector, so should I ask for one or not? As far as I can tell, the property has been vacant for about a year and the utilities are likely off. How did the GC inspect the oulets, HVAC, water heater, etc. with no utilities. Just a little concerned and wondering what you would do?

@Steve Vaughan, my sincere apologies if my lack of response from my post 3 days ago came across as unappreciative. Quite the opposite, in fact. I've been very busy questioning some local REI's, but definitely taking in all the replies.

As many have mentioned, money mgmt is rarely, if ever, taught in school while growing up (at least in my experience). Those that were lucky enough to learn anything likely learned it from home, be it positive or negative. That being said, when I became a DR follower years ago, it all made sense, and thus became one of my apparent paradigms I'm having to get over in order to learn, and ultimately act upon regarding REI.

All that being said, I certainly appreciate each and every one of you for your input and point of view.  It definitely helps to hear the positive and encouraging words with regards to "good debt".  I'll continue to read, ask and ultimately learn with hopes and an expectation to take the plunge into my first deal sooner than later!  Thanks again to you all!!!

@Trevor B., thank you for your reply and link to your blog.  Excellent article and very informative.  Definitely has me thinking.  Thanks again!

@Account Closed. You too, have gotten me thinking, so thank you for your reply. The more I read, the more I'm understanding that Dave Ramsey is great at helping people get out of bad debt, and teaching how to manage money to those who have never known any better. However, on the investment side of things, I just can't help but think there are better ways for responsible money managers to invest and build wealth faster through REI.

Again, thank you all for your replies.  If I may, one last question:

I'd feel much more comfortable with a larger savings/cushion before jumping in (wouldn't everyone!), so for a newbie, would you recommend a buy and hold property with $300-$400 cash flow (if bought at the right price and all due diligence showing it's a good investment), or flipping that same property for fast cash to help build a better reserve? My long term goal is to have many buy and hold properties through BRRR, but the conservative part of me would like to have better reserves before doing so.

Chad