All Forum Posts by: Darnell Kramer

Like @Dawn Anastasi mentioned styles change. As @Beth L. mentioned mid grade products without maintenance. Great one on the tub, that will help with leaks, rot, mold!

An apartment owner friend mentioned that the newer laminates and vinyl look much better and are more sturdy. Colors will change and styles will, but if you take those midgrade semi permanent items and go neutral they will last. Paint though can add a bit of difference.  I did my recent rental in antique white, nice neutral color.  My wife chose some lighter grays that really added a bit to the feel of another rental.  Nice thing about paint is that it is a much easier change every  few years.

I tile my bathrooms and kitchens, helps with spills. Also keep an extra case for those broken tiles that will happen.

As to cheapest, make sure you are including lifespan. Sometimes cheapest means you have to replace more often, meaning more labor and vacancy time.

Good day,

I would have to agree that it really is market dependent, and style of texture.  You can go from really subtle to rather heavy.

I have textured walls at my current place 1980's rental:  (Orange peel)

Patching holes:

Painting: I have an airless sprayer and can cover a 1600sqft place in 1-3 days, depending on color scheme.  It covers all those dimples easy, but as @Sylvia B. mentioned, proper nap on your roller.

As @Sky Mikesell mentioned customer first.

In your dilemma trying to get a wall clean that has issues can be really tough.

As @Karen Margrave said some customers like clean walls.  Places in expensive areas, like the OC and SF, and a museum or art gallery need a level 5 drywall finish.

So, go to your market, for what the goal is.  A good suggestion I heard was go to model homes for a flip, or apartments/other rentals for ideas on rentals. 

Happy wall finishing!

@Account Closed 

As Ron mentioned there was a time where you could get some that would cash flow, Istill have one, but I found it in 11 and used 20% down.

For appreciation, sure you can invest in the SD market, as well as for fix/flip, and there is alot of competition.  There are also alot of houses. 

I think you will have trouble with the 1%, but you have a great rental market, great area, great schools, great business and low ability to purchase, so people tend to rent.

South Park has gone through some of the gentrification/improvement already, and it has spread into Northpark, though there may still be deals. Downtown not really my area.

Hillcrest and bankershill seem higher priced, well maintained, older homes. These areas may have the ability to find estate probabte, but again, competition in the area.

So depending on your goals, yes and no.

Timing, luck, hard work. Yeah thats socal. And even the flippers can work less than the 70% ARV because the prices are higher. My last socal deal was a year and a half ago. 200k purchase, 20k rehab, currently rented at 2k month, appraisal 4 months ago was 350k.

70% on a 100k property vs a 500k-1m.  My uncle used to work San Fransisco.  Buy a 300k property, tear down to one wall, put in 300-500k and sell for 1.5m.

So the numbers can work in a way, but the usual socal appreciation can also be found on the FHFA website.

If you want the coastal numbers  I would talk to @Karen Margrave

I currently rent.  Why?

Being military I travel, as others have said.  In this area though it is special.  I am in a military town in the middle of nowhere.  Rent. 1k per month.  House cost. 250k.  Good deal. 

I take the extra and it goes to more investing.  Conversely though as soon as I leave this station I will be out of the military and I will promptly buy another house, even in Ca., I love appreciation.

@Andrew Smith

Welcome to BP. Get some reading in on the articles.

As to buying a foreclosure it is the same as any other investment, make sure the numbers work first.

There is something great about making your first investment the place you live in. You can work, learn, and make some mistakes. You will not lose holding costs due to contractor delays, inspections, finding those 'easter eggs' that come up when you pull down dry wall.

If you can get it there are still FHA mortgages with 3.5% down for owner occupied. Get an inspection, as Chris mentioned, that will at least help with anything that is not covered up.

Good luck.

@Greg Kuchan

Welcome!

Plenty of information on this site to help you out after you get all the starter guides read.  Also if you have specific questions there are many super helpful folks that I am sure would chime in to your requests.

Good luck, never let your age be a factor, and keep up the hard work.

@Phil Park 

With the limited information I would still say it depends on your goals.

Personally I try to buy and hold for long term wealth, but as I need cash to buy more holds I try to get rehabs done.

Considering the one unit was fire damaged, and it seems that you will be rehabbing down to studs, you will at least know the condition of the building and holding it would seem reasonable as most capital expenditures are done.

I would decide buy and hold or flip prior to picking finishes as they may differ.

As to HML or partner that to me would depend on the rate you are getting on the money. Cost of capital is pretty straight forward.

As to presentations, there are other better people on this site.  Gather solid backing for your projected numbers in the presentation.

Good luck.

@Paul Winka

@Wendell de guzman mentioned in another post. long hours hard work.

It takes time.  Some make it faster, but the usually have some history.

Over the last 11 years of my military career, I have not really been an "investor" by this sites terms.  I only bought just below market, I improved while I lived there and then when I transferred I rented the place that I had lived in.  Now though after several deployments, transfers, and very long days, I have several properties that all pay their bills.  I am now ready to get out, and far far better off than my stock investments have been.

So, as to the original question.  You may not hit home runs, or flip tons a month or buy big.  We all learn to crawl before we walk. Start buying, make money, learn.  Get better, continue to shoot for the stars. Put in the hours.

Investing takes some time, you can do it faster, with more work. Time, cash, and ability are the three talents that we work with. If we are lacking in one we have to make up for it in another.  As to Mcd's if I remember correctly Ray Kroc even knew that real estate was his most successful business.

@Paul Winka

Just a quick thought on the .. Partner.

Ten or so years ago when I was starting I found a similar arrangement with a "partner"

I ended up finding a property in the area that needed work, we could purchase under market, and with rezoning would have been a huge windfall. After we brought the project to him, and he was interested communication lapsed and it went DIW(Dead in water).

With my curiosity and property tracking I looked at the property later and found that he had bought it, rezoned, fixed and sold for nearly 1mm more. Lesson learned.