All Forum Posts by: Dirk Gesink

I am an investor from Phoenix and I am planning a trip to Houston Thu, Feb 20 though Mon, Feb 24. I will be available all day Fri through Sunday inclusive. I am looking for a realtor, preferably one who has experience with the BRRRR strategy, to start a rental portfolio. I would like to spend a day or two looking at appropriate properties with the intent to purchase 3 properties which will have an ARV in the $150,000 - $160,000 range and have a monthly rental income of at least 1% of the ARV. I may consider buying one or two that are rent ready so I can start bringing in some revenue while I rehab the remaining one or two properties that need repairs. Please contact me if you can help. Thanks.

To all you seasoned investors out there, if you had $1,000,000 in liquid capital and you wanted to create a passive income stream with real estate, what would you do to maximize your returns?  How much passive income per month could you generate and what would be your strategy?  Also, is there a specific US market, or markets, in which you feel your strategy would perform the best?

Thank you to all for your responses.  I am orignanally from Michigan and still have family in the state so I wil check into the Detroit market.

Does anyone know of a current US residential housing market in which the monthly rent equals 2% of the property value?

Thanks for your input gentlemen.

I have a house I bought for $240K with the intent to fix and flip it.  I have gotten several bids and I found a reliable contractor who will do the rehab for $160K (not the lowest bid but someone I trust / he was referred from a friend who has done multiple flips with him) which includes a complete update as well as adding square footage and a garage.  Once done I think $525K is a realistic price.  My holding costs will be minimal because I paid cash for the property but I will be using an equity line for the remodel so I'll assume about $5000.  By my calculations, with this scenario I stand to make about $86K.

($525K [sales price] - $34K [commissions/closing costs] - $5K [holding costs] - $400K [total investment] = $86K)

In the worst case scenario, if I went over budget by 20% and sold for 10% less (both of which I think are unlikely, but preparing for the worst) I would still make a much less impressive $4K, but at least I wouldn't lose (and would likely learn some vauable lessons). 

($472K [sales price] - $31K [commission/closing costs] - $5K [holding costs] - $432K [total investment] = $4K)

I'm fairly confident with my numbers, I went over the bid with the contractor line by line to ensure it was complete, and checked the recent comps and comfirmed with my realtor. 

Just wondering how experienced flippers analyze their risk reward ratio and if you would consider this an acceptable risk.

Does anyone have any experience building in the beach communities of Rocky Point Mexico?  I have several ocean view lots I bought years ago (3 in Las Conchas and 3 in Encanto).  The market appears to be heating up there and I am thinking of building a spec home on one of the lots and, if I do well, sequentially building on the others.  I met with several builders and it looks like I can build for about $90/sf and sell for about $125/sf.  I would probably be building about a 2000 sf house.  My wife and I have done several fix and flips in the states and have done relatively well.  This would be my first new build and my first international project so I want to make sure I’m not biting off more than I can chew or taking too big of a risk.  Any thoughts, particularly those based on experience, would be welcome.  Thanks.

Thanks for the input gentlemen.  I think I may have found someone who can do it for $160K.

My wife and I have a 1500 sf property in Central Phoenix with permitted plans to add about 500 sf livable plus a new garage.  It also needs a complete upgrade including kitchen, baths, plumbing, electrical, and A/C.  I was under the inpression that I could get the addition done for about $150/sf and the uprgades done for about $50/sf [(addition 500sf x $150/sf = $75K)+( upgrades 1500sf x $50/sf = $75K)=($150K total cost)].  I have 3 bids that have all come in over $200K, one significantly.  We have plenty of wiggle room at $150K but we're pretty tight at $200K, particularly if there are any unforseen expenses which is likely.  Am I being unrealistic or should I get more bids?  Any thoughts would be appreciated.  Thank you.