All Forum Posts by: Caleb Mclamb

I feel like a MFR that cost 120k could cash flow higher than just the SFR single rent, but thats partly due to the fact that im not very familiar with "nice" home rent rates in pcola yet, i know a average 2/1 in a mfr could go for 500-600 but i dont know how much a decent sfr can fetch, ide assume a 1000 at best? what have you seen as far as 120k SFR rental rates?

thanks @David Friedman

6 months of holding costs should be ok, and i guess ille have to shop around for a bank that will refi it off an appraisal. thankfully I have income and my partner does as well.

Thank you for the tips!

Hello BP! 

I am planning my first flip and am searching my exit strategies. If I buy a house for all cash, and then for some reason it will not sell then what are my chances of being able to cash out refi assuming I am trying to turn it into a rental property and assuming the flip is complete and its now truly a 120k 3/2 home? 

It seems to me a 3/2 would have a hard enough time cash flowing but is getting the cash out refi even a option? Just trying to figure out a plan B

Thank you for any advice!

@Chris C.  I like the numbers idea haha

One thing i did catch is i was not applying the full 6% commission instead of 3.

Hello BP, 

Currently I am reading J Scott's the book on flipping houses and I am learning allot! I am working with a local realtor and am formulating my criteria of what I am looking for with her. 

My question is this, if i plan to flip using all cash and want to be all in for no more than 100k, what is my max purchase price or MPP? 

I calculate: MPP= ARV-FC-profit-rehab-safety net

ie 66k=120k-12k-20k-20k-2k

66k=MPP

120k=resale value

12k= fixed cost when using no mortgage

20k= my desired profit

20k= a very very rough estimate of rehab on a "level 2" heavy cosmetic rehab

2k= just because I am going to make mistakes

Remember, this is not about a particular deal it is about what $range$ of deals I should be intersted in if i want to be ALL IN for no more than 100k

All in all my conclusion boiled down to purchasing for around 55% of ARV and my MPP being 66k and under.

any thoughts and notes are much appreciated!

thanks @Wayne Brooks and @Chad U. ! 

so 4-6 hundred when i buy and  1.25% + 1000 when i sell it?

Hello BP!

I hate to waste anyone's time but I cannot figure this out. How do closing costs work in Florida when buying and selling with cash?

If I buy a property through my realtor for cash, flip it, and sell it to a buyer with their own purchasing agent how much commision will I pay on both sides?

I believe I will pay 3% on purchase but I am not sure about closing. 

Thank you for any insight.

@Pavel Sakurets  welcome to BP then! I do not mean that attending these seminars is a scam or rip off, I simply mean that all of the information he covers a million times over is located here on BP! Ive learned so much from the recommended books, the podcasts, and the networking, more than I believe I could have learned at any seminar.

@Bobby Narinov  Agreed! the man speaking was part of a much larger group and Im not sure if he has ever been an investor, but the group he was with is on HGTV (Flip That House) so I'm sure that they have decent information. I just feel BP has much much more!

Hello BP!

I went to a seminar tonight at a nice hotel in Pensacola Florida. The man on stage gave good information. Very very limited information, but solid information. He then proceeded to tell us that their boot camp in 3 weeks was a whopping $1200!! BUT WAIT, if you signed up tonight you got $1000 off. That's right, for only $200 you AND A GUEST could attend the 3 day seminar and learn everything in the world. It was truly sad to watch some people excitedly run to the back, others skeptically march, and others still sit with their jaw open unsure if they would take the steal of a deal or leave feeling unfulfilled. 

I went just to watch the circus, and I wasn't disappointed. At first the info was solid and vague but it got more and more "salespitchy" as the night wore on. 

I did however have the opportunity to talk to two couples and tell them that if they were truely interested in this they needed to go to biggerpockets.com! There they could find all the info that man would talk about at his boot camp AND LOTS LOTS MORE. One shrugged but the other wrote it down. I wish I'de had cards with BP info on them or a tshirt or something!

It seemed to me that their boot camp would have good solid info, but there is no need to pay for it when it is available right here on BP!