All Forum Posts by: Craig Clinton

If the seller has an agent, they're not going to want to speak with you directly.  That's part of the agent's responsibilities.  And if you try to go around the agent's back, word will get about you and some agents may not want to work with you on other deals (at least that's how it is in NJ).  Try mailing marketing postcards directly to home owners to find motivated sellers and cold calling for motivated sellers....obviously to homeowners that don't already have their home on the market.

Wade, welcome aboard! You're definitely starting off on a good path: you have a goal, you have your BIG why (free time and teach your boys), you've studied, and you've started putting in offers. Great job! My quick two cents is jo your target areas like the back of you hand, go to REI meetups as often as you can, use BP for questions, read BP articles, and make sure everyone you meet knows what you do and what types of properties you are looking for.

Good luck!

Wow!  Triplex and 6 unit for 200k and it doesn't need any work!!  That would be 1.8mm retail in NJ.  Congratulations on this deal!  My takeaways:  Great job letting your appliance guy know what you do.  I need to get better at telling EVERYONE what I do and what types of properties I look for.  It sounds like you didn't need a realtor on this one.  I'm not sure if you wanted to sell your single family to make the down payment, but even if you didn't want to....it was a no-brainer to sell it to get this deal. 

Good luck moving forward with this one!

Welcome and good luck!

I'm closing on my first air bnb in a few weeks so I don't have any firsthand experience yet, but iIn my humble opinion, charging for food with leave a bad taste in their mouth (no pun intended).  

Also, coming from someone with kids that have food allergies, you might want to have some kind of verbiage on air bnb or a big sign on the counter for guests that they should read the labels on the food and that you are not responsible for any adverse reactions.

With that said, I plan on having coffee and tea k cups in my air bnb

Meetups are the best place to start.  You'll learn tons of info and probably meet a willing mentor there.  Be cautious with any "mentor" that asks for money.  Vet them carefully.

Were they under the impression when they signed the lease that there would be a turf yard?  Or was it in the lease?  If not, you're not under any obligation to do it. Now you have to think about can you get your money back and how quickly if you did decide to do it?  Can you raise their rents enough when the lease is up to start recouping the costs in a reasonable amount of time?

I'm assuming the $12,128 is not just points, Hopefully what you have in there is: your lawyer fee, title insurance, inspection fees, survey (if you want one), oil tank sweep if necessary, misc. costs. Two months for $1333,000 rehab is not going to happen, unless your town doesn't require permits (which I'm sure is not the case). With a $133,000 budget, you should have 10% in there for contingencies. Meaning your budget is $120,000 + $12,000 contingency + $1,000 other = $133,000. At $388 per month, you'll get your $23,128 back in 5 years. What are your goals? If it's just this one house, then I guess that's ok. If you want to continue BRRRR'ing, it's going to be difficult leaving your money in a property for that long. Is this the only property that you own or do you have others? I ask because you have $295 for management fees. If this is your only property, you should be able to self-manage. You cab save the $295 plus you'll learn a LOT about property management in the process.

Your math look correct.  How much are you factoring in for capex and vacancy loss each month?  I just want to get a full picture of what your gross cash flow is.

If you 1031, how would you come up with the down payment?  I ask because if you sell for 1.24mil, you'll walk away with roughly $140,000.  With the 1031, you'll have to find a property that is at least 1.25mil.  25% down payment + closing costs......you will need at least $350,000 to close.  $350k less than $140k, means you haver to come up with around 200k.

Bigger Pockets recently had an article about this.  Here is the link.

https://www.biggerpockets.com/...

I put timeline incentives in my contracts with GC's.  For instance, if you pass rough inspections by 5/15, you get a bonus of $1,500.  If you pass final inspections by 6/30 you get a bonus of $3,000.  I find that if I don't do that, they end up taking other jobs because they don't want to say no to someone and they string along your project.  

I'll be honest, I didn't read the BP article so I might be repeating what it said but I would also go look at a current project that they have or a finished project to see their quality of work.  Ask if they have references too.