All Forum Posts by: Craig Jones

@Tatiana Portnyagin

That's the million dollar question I'm working on as well! My recommendation is reading the book on understanding market changes that's recommended on BP. Its the next book I'm going to be reading but let's hope the market doesn't drop too bad if it does at all. Might be some great forms on here that would be helpful as well

@Tatiana Portnyagina

Definitely sounds like a good strategy for sure. Theres many manys to go about it but simply if you are going to be paying around 2700 a month in rent you never see that money again. If you buy a property, rehab it probably end up with a cheaper payment which will be going towards your investment instead of someone else's. Then you can go many different routes in acquiring your first rental property from there with the equity. That's just my 2 cents and the route I went and it's working out so far!

Good luck!!

@Hudson Walker

Yes yes and yes! At very least do a walkthrough with an inspector. Some like to work without someone staring over their shoulder but it's worth it to ask because you can point out things and ask questions and it will help give you a much greater idea with what your getting into. Weather your have been building houses for years or never swung a hammer it's worth the small amount of cash to have a 2nd set of eyes on the property. Good luck in your hunt!

Congratulations! Thanks for the data behind your work too. Really helps motivate!

Another side note about finding roofers I didnt see in this post is go to your local lumber yard and theres a good chance they have a bulletin board with tons of small companies business cards that need work or just ask the people who work there. Has worked well for me

@Brian Gerlach. Thank you for the reply, really helps to know we are going in the right direction. We are working with a MLO who said we would be getting a conventional loan to start and 2 days before closing told us the house isnt livable and wont be approved for that loan "which we told him before all this but he insisted it would". So we got approved for a hard money loan and have only 6 months to refi and pay the loan off. Not sure if that is a normal deadline for a HML but we are 3 months in and almost ready to refi. That being said we are saying we are moving in so that we get the best loan rates. The ARV and 75% part are the real unknowns for me but I'll post about the numbers after we refi. Thanks for letting me know we are on the right track!

@Christopher Middleton I'm not an experienced investor but I would recommend a single family just to keep the cost down and do the work yourself. Washington market is a bit higher but with 20k I have started our first investment property. Good luck!

Definitely call the water and sewer company and see what would be needed and you can rent a mini excavator and do it yourself and then if you want you can hire the rest out or do it yourself. It's much easier than you would think after the trenches are done.

So we got our first deal and about 80% done with the remodeling. We have been working on the house every night after our full time jobs and have not absorbed as much "starter" information as we would like to but that's soon to come after we finish up. So we would like some input on if we are running the numbers correctly and getting our investment terms down. Bare with us we are new to this!

Home sold for 236,500. (Seattle prices are the worst) 3bd 1bath to start

Went with a hard money loan at 10% down and after closing cost and throwing money at them to give us keys we had 25,477 down

This is a full gut job. All new wiring, plumbing, water lines, furnace, added bathroom, drywall, rotten walls and roof repaired.

We are just about done and estimating 25,000 In repairs we are at 19,534 right now

This puts us at 50,477 down with an estimated appraisal at 375,000.

I am a bit confused about the ARV and the ROI and just making sure I can understand the money side of things. If anyone can give us a few pointers it would be much appreciated. We will be much more involved on here once we are fully done with the remodel. Thanks