All Forum Posts by: Chris Drumm

Thank you! @Constance Grandelli and thanks to everyone else for your feedback.  It has made me decide to spend a little extra to install better flooring to align with the comps.  

@Victor Mondragon thank you

@Benjamin Ervin @Tommy Hopkins @Aniekan Udoh Thanks for your feedback.  the comps are as follows 1)carpet,tile 2)tile, wood 3)laminate 4)laminate, tile.  I work for Redi Carpet (largest multi-family flooring company in US) and I can get materials and labor almost at cost.  The click product that I am referring to is a higher end waterproof one and it's actually $1.89 cost, the vinyl is $0.66 cost.  Maybe I was looking at too high of a pricepoint.  I won't be doing labor myself, I just get a great deal on it. The vinyl plank i was looking at is also a very nice product.  The home also has white ceramic tile currently in the kitchen which i may leave in that area.

Thanks Rich

Thank you, Bill.  Much appreciated

I am closing on my first flip house in the Houston area on Thursday. It's a 3/2 in a pretty nice, standard mid-range community built in the late 70's. the ARV is $175K. I work for a flooring company and can get the material and labor myself, but am not sure if I should use a mid range vinyl plank for around $1/sf or WPC waterproof click product with a foam backing which is a step up and looks a little bit nicer but also costs about 3 times as much. Would it be worth it to spend the extra money on a little better of a product? It's probably $2K vs $5-6K

Thank you

Thank you everyone.  I do have good credit, 670 mid range.  The other concern I have though is that there is negative cash flow.  The seller is telling me "it's only negative cashflow for a year and then you get it refinanced" but I am really skeptical to move forward on something that will drain all of my reserves for down payment and the $4500 rehab and then have negative cash flow for a while.  I would be financing $110K and so the mortgage would be $847.  With all other expenses (and thats not even factoring anything for a maintenance reserve), I am at -$103 per month, assuming that I get a tenant in there quickly.  If i do not I would quickly be in trouble.   This does include the maintenance fee though of $155 which covers water, sewer, gas, and trash.  I am eager to get my feet wet but am not sure if it's the right time.  I initially was expecting a 4-5% rate (which I was wrong to do) which would have been a whole different story!  Do you guys think I should hold off for a little while?  Thanks again for your feedback here, it's much appreciated.

If you can do an owner finance deal for a buy and hold property with 5% down and an 8.5% interest rate, is that reasonable or is that rate too high? I am hearing that in this situation it is a fair rate but i want to see what other people think. Thanks

If you can do an owner finance deal for a buy and hold property with 5% down and an 8.5% interest rate, is that reasonable or is that rate too high?  I am hearing that in this situation it is a fair rate but i want to see what other people think.  Thanks