All Forum Posts by: Kevin Mellor

Thanks Braden.

40 years old, located in Kenner near the lake.

According to the drawings, the differential is about 12 inches from back to front.  The back is higher than the front.  Take a look at the drawing above.

Yes, shoring the foundation. The home is in Southern Louisiana. It has a lake, to the north, and to the west is swampland. By no means is the soil hard. In this area, pilings are driven into the ground before the slab is poured to reinforce the unstable ground. In the estimate, the company would dig under the house to reinforce pilings that are holding up the slab, and house. The house itself is a 2 story, brick home. The ARV would be in the range of $420k-$450k. The price of the house is $250k, and would need $10k -$15k of repairs, in addition to this shoring work - estimated at $61k.

I am considering purchasing a flip house in Louisiana that needs shoring, but I am not convinced I should get into a house that needs shoring. 

I am unsure about the costs - even though we have received an estimate. The estimate was to level the house, but the estimator said there could be additional costs if there are other findings when they are working on the house.

I am sure I can make money on the flip if the estimate holds true, but I am concerned that the estimate could escalate quickly, and force the project to go over budget and potentially make the project go from green to red.

I'm looking to see if anyone has done a project (flip or not) that included shoring to see if the estimate was mostly accurate.

Thanks,

Kevin

I am considering purchasing a flip house that needs shoring, but I am not convinced I should get into a house that needs shoring. 

I am unsure about the costs - even though we have received an estimate.  The estimate was to level the house, but the estimator said there could be additional costs if there are other findings when they are working on the house.

I am sure I can make money on the flip if the estimate holds true, but I am concerned that the estimate could escalate quickly, and force the project to go over budget and potentially make the project go from green to red.

I'm looking to see if anyone has done a project (flip or not) that included shoring to see if the estimate was mostly accurate.

Thanks,

Kevin

I’m a new member to BP (and soon-to-be investor), and I’ve attended (or viewed later) a few of the webinars. I have learned lots from each of them. My brother-in-law suggested I listen to the podcast as well, and instead of jumping right in with show number 160ish, I started at the beginning. I’ve reached show 40, and heard the tip about the 50% rule for analyzing multi family investments, and stumbled upon this question...
I have heard Brandon Turner suggest earning between $100.00-$150.00 per door as a goal, but I wonder about the ratio of loan to doors, and how that changes your goal. For instance, in a recent webinar “How to Make $1,000,000 Through Real Estate Investing” I believe Brandon suggested cash flowing $150/door with an investment of around $100,000, and again in his post “How I Quickly Analyze an Investment Property ” he suggests a cash flow of $100/door and an investment of about $100,000. I doubt you would be happy with the same $100/door if your initial investment were $500,000 or more. Also, would this hold true if you were to analyze a duplex instead of a 4plex? Would someone with more multifamily experience dive a little deeper on this, and perhaps comment on what happens if your initial investment is higher than $100,000. Would you recommend a "per-door multiple" of $100-$150 per door, per $100,000 investment (if it is a 4 door property) = $300,000 should yield $300 to $450 per door.  

Would you recommend $200-$300 per door if the same $100,000 investment if it were a duplex? Would you recommend a $500-$750 per door if it were a $500,000 investment. Thanks!
Kevin

Hello All,

My name is Kevin Mellor from Metairie, Louisiana. I'm new to investing, but I feel like I'm in the right place for getting started. My brother-in-law turned me on to the BiggerPockets podcast about a month ago. Since then, I have come to love the podcast, and more importantly, the breadth of knowledge I attain from the podcast. I started with Show #1 and have made it through about 25 podcasts so far.

My wife is an agent in the New Orleans metropolitan area, and enjoys helping friends and family buy and sell their homes. Her business has picked up a bit over the past few years, but more leads would be great for her business.

As I mentioned above, my brother-in-law is the one who turned me on to BiggerPockets. We, as well as our wives, have recently stepped up our efforts in our real estate investing education, and look forward to making our first deal as a team. We currently search the MLS every day and are struggling to find deals on the MLS, as they are scooped up quickly, or so competitive that the numbers just don't make sense for our model. More specifically, we are looking for single family homes to buy, flip, and sell, but we have also looked into the multifamily (or is it multi-family) rental arena as well. We need deals, or at least leads. We are "driving for dollars" frequently these days. I am also wondering whether we should seek out wholesale deals, or work with a wholesaler frequently.

I'm looking forward to a long term relationship with RE and BP.

Hello All,

My name is Kevin Mellor from Metairie, Louisiana. I'm new to investing, but I feel like I'm in the right place for getting started. My brother-in-law turned me on to the BiggerPockets podcast about a month ago. Since then, I have come to love the podcast, and more importantly, the breadth of knowledge I attain from the podcast. I started with Show #1 and have made it through about 25 podcasts so far.

My wife is an agent in the New Orleans metropolitan area, and enjoys helping friends and family buy and sell their homes. Her business has picked up a bit over the past few years, but more leads would be great for her business.

As I mentioned above, my brother-in-law is the one who turned me on to BiggerPockets. We, as well as our wives, have recently stepped up our efforts in our real estate investing education, and look forward to making our first deal as a team. We currently search the MLS every day and are struggling to find deals on the MLS, as they are scooped up quickly, or so competitive that the numbers just don't make sense for our model. More specifically, we are looking for single family homes to buy, flip, and sell, but we have also looked into the multifamily (or is it multi-family) rental arena as well. We need deals, or at least leads. We are "driving for dollars" frequently these days. I am also wondering whether we should seek out wholesale deals, or work with a wholesaler frequently.

I'm looking forward to a long term relationship with RE and BP.