All Forum Posts by: Dan White

 @Jason Wray is giving great advice. There are multiple ways to approach it. You said you want to scale and leave the W2 grind. One way to build up your portfolio and to create monthly income to replace it. Refinancing is not a taxable event so you can keep grabbing equity as time goes on without the tax implications. We do this through our commercial and multifamily investments. The plan is to never sell (taxes)...just keep making money and refinancing.

To replace your W2 now is bit more tricky. You could do flipping and you will make money now. I did that. But it comes with challenges. So, it depends on what your long term and short term goals are. 

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Congrats on getting that first flip done! Sounds like you nailed it.

Staging should help with appeal inside - I'm split on staging though...sometimes it works and sometimes it doesn't...at least in my experience. 

Ultimately - I feel price drives the sale. Being an agent investor you know that buyers give you a budget for their searches and the usually round to the 25's . For example - "My budget is 525k". 

I found the sweet spots for listing is getting a hair under that number. So if I am looking for that 525k buyer, I list at $524900. So, you being at 569k will appeal to those with 575k budget but some of the buyers at 550k may not see it is their agent has a criteria setup not to show above 550. 

But that 19k off of your current price and that is a bunch of $$$. If it were me, I would try the staging first and try to keep your list price and see what happens. If it doesn't move, the only thing after that is price.

I agree with @Scott E. on this. We don't really care about the size - just on likelihood of resale ARV. We have done 200k condos through 1.2M SFHs. The process is the same and we expect the same profit margin percentage regardless. The turn time for reno is usually quicker for the smaller properties as we can get it to market faster. But that influence our decision...we just add holding time to the larger projects. Hope that helps. We do try and only buy 3 bedroom and up as smaller bedroom count lessens your buyer pool.

 Yeah @Bruce Woodruff is correct. No way no know unless you have a feel for what needs to be done. Cosmetic flips are lower costs than dealing with mold, structural, plumbing, electrical, and other more invasive issues. Feel free to reach out and I can see how I can help.

 @Ryan Lockstein we have adjusted our buying criteria to reflect lower ARVs and longer hold times. To be exact, we have added 2 months to our hold time and lowered ARV by 15-20%. ARV being the most recent comps minus that 15-20%. Using these numbers, we feel good on making money for whatever the market throws at us.

We are full time flippers in the Washington DC Metro Area. 

I ran into a similar scenario for a STR we have currently. We bought it as a flip with hard money but it really worked better as a STR. The house has three separate entrances and 9 bedrooms total. Awesome! But, we were all in at 900k on a 1.15M appraisal. Both my flipping partner and I could have qualified as the note holders but decided to mitigate our risk by bringing on partners for an equity stake. We easily qualified between us and the partners and we got out of the hard money loan. So, while it sucks to give up some equity, it may be the best route to get out of the loan. Our partners paid for half of our costs of reno and half of the 40k needed to get the loan closed. So, out of pocket they paid for 50% of our costs for a 50% share. Worked out great so far - property is cash flowing nicely.

I think BRRRR would be of a long term play instead of replacing your income now. I flip full time and easily replaced my W2 income. In our business, we take our excess revenue to invest into long term investments like STR and Multifamily properties.

 Great advice - same thought here. Start with house hacking. It is not for everyone but if you can manage it - it will be financially rewarding long term.