All Forum Posts by: David DuCille

 I just got to see the property with my own eyes for the first time on Sunday and due to the pipe that burst, flooring was taken out down to the subfloor.  I'm not sure of all the details because the pipe burst on the 2nd floor and the unoccupied 1st floor got damaged but not sure why they tore out the 3rd floor as well.  so yeah, we have to build back with something.  Home has a substantial dip in the rear part of the floor so some work is going to have to be done to the subfloors as well to get them flat.  May have to just tear out the 3/4 plank subfloor and sister joists to get a flat surface and then resheet with 3/4 ply.   This project could be dead in the water already, I'm not sure what my partner and his contractor were smoking when they thought this house was only a 90-100k reno.  I have it at $230k, some of that doesn't have to be addressed right away (exterior items) and some of that is contingency ($20k) and 6 months carrying costs which could come down a bit if we get it done quicker.  With that being said, the numbers still work to cash flow this property but now the question is where are we getting all the money from.  Not sure that I want to get in this deep from 1000 miles away.  

 Awesome, thank you.   I'm getting a lot of friends saying "Woonsocket? It's a **** hole".  I'm from Brockton, most people also think it's a **** hole but there are plenty of great people there and good areas of town where people will pay good money for a nice place.  That is the segment of the market we are going for.  Just don't want to make any bad decisions that negatively impact the long term value of the property either.    I like vinyl plank but it can get scratched and gouged particularly by people sliding furniture and appliances on it.  

i self manage mine and now the market here in Tampa is getting saturated so with the exception of the one with a pool that absolutely crushes it, I'm considering going back to LTR so that i can go spend more time on my boat and less time washing sheets and towels lol. But in all seriousness, I like STR for other reasons most notably, my property stays nicer. I've got my cleaning people in there at least 1x a week often times 2x plus i'm in there. Even relatively good long term tenants do stupid **** like use lag bolts to hang a small picture frame, never deep clean house, etc. By having it as a STR I am equipped to immediately put it on the market to sell it and it's already staged which is kind of nice and I can also choose to market it as medium term rental , someone that needs to work in the area for 3 months so i get the best of both worlds. But yeah, giving up the percentage you are talking about is insane.

yes the rule exists but no, I haven't seen many investors practice it in recent years.  I think that could start changing though.  the idea is that there are just so many things that can possibly go sideways in a rehab project and with the market that if you follow that rule it's nearly impossible to lose money on a deal.   Now with that said, you can find yourself never doing a deal because it is really hard to find something that far under market value.  

most everyone else has hit it here but I'll add that if your quick flipping than yes you are paying taxes and since you aren't holding for more than a year you are paying short term capital gains which are taxed at the same rate as ordinary income. Many are doing what i dubbed "delayed flips" where they do the BRRRR thing and then sell. When they sell later 1. it's at long term cap gains rate of 15% and 2. over the past decade with a rapidly appreciating market they are selling it for even more than what they would have gotten right away. So they make a years worth of rent and then sell for even higher profits.

Keep in mind, you pay taxes when you are making money.  If you can buy a property for 100k put 30k into it and sell it for $200k even after closing costs, you are pulling in 50k of income.  And if you are really leveraging your time by having realtors or wholesalers bring you the deals and contractors doing the renovations, you really aren't doing a whole lot of work other than signing off a few documents and writing a few checks.  IT sure beats sitting in an office 9-5.   Literally 2 deals like that a year, someone can make 100k income for 8 weeks of work.  

this could go sideways fast when the friend thinks he is getting to buy his house back cheap and you want to hold onto it .   all that being said, the numbers make it sound like it could be a great deal but a lot of drama to be worked out between you and him.  yes, consult an attorney to make sure you aren't getting dragged into a legal matter yourself

Hello everyone, I am based out of Tampa florida where i own and have rehabbed several properties but I just put a triplex under contract in Rhode Island.  I'm a native  to the South Shore of Massachusetts so i'm very familiar with these old early 1900s buildings.  My question isn't really one about construction per se as much as it is about people and expectations.  This property will be getting fully gutted, it had a pipe burst on the 2nd floor and the seller has already demoed most of the property including the original hardwood floors.  It is down to the plank subfloor.   I use laminate and vinyl plank all the time here in Tampa on our concrete slab homes and it's considered a pretty standard thing.  Even higher end homes are going with it vs Engineered wood which was previously the choice for the higher end homes.  But I can't help but feel like these old early 1900s homes just seem to scream out for real hardwood which is of course very expensive?   AM i way off base here?  We are shooting for the high end of the rental market when it's done but with that said, it's not located in a super high end area (woonsocket, RI).   Much of the lath and plaster has been demoed out so fresh new drywall will be going in.  I'm sure most of the door casing and trim work is gone too so part of me feels like, if we are going down to the studs, just bring it back to new modern standards.  But there may be some opportunities to salvage old solid wood doors and other charachter elements and it seems like if thats the case hardwood is appropriate.  

What do you guys think?

 Thanks Joe, appreciate the response.

 Great response Mike. For the masses, I want to make it clear, I'm not ragging on BiggerPockets in any way or blaming them.  Just simply noting that all.good things come to an end and wondering if this is the beginning of the end for BP 

what annoya me is my he same company keeps having different people harass me.  Networth realty in Tampa, one day I'm gonna show up in your offices and you won't like me.  That may be what it takes to stop having your interns, new hires,etc call me!

 I don't disagree and im not complaining about my personal email and that spam.  Bigger pockets used to be a safe haven of sorts and it was more of a discussion basses networking site to learn from.  Now it's just becoming spam central for me.  Just like Facebook used to be an awesome tool to keep in touch with friends and family from afar but it has evolved into something else.