All Forum Posts by: David Jack

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $40

Buy and hold deal from wholesaler.

How did you find this deal and how did you negotiate it?

Local wholesaler contacted me FIRST.

How did you finance this deal?

Cash.

The same thing happened to me in West Philly.  I thought I had a beauty and when it didn't "fly" I got worried.  I feel that we're in a delicate time in the market.  Even though the numbers are still strong, there's a lot of economic uncertainty.  I've always believed you can have the best finishes, lawncare, etc. but price sells the property.  Make a bold move.  Drop it to a level that will matter to buyers. As investors we know that edging downward just shows your weak hand when it comes to offers.   If you take a "haircut" on this one, so be it.  That's what we have to do sometimes.  You'll make it up on the next one.  Or, rent...  (that's what I did).

Finished!  

Hey Steven,  It would be extremely difficult (and imo) unwise, to rely on an opinion of reno cost without knowing EXACTLY what the house needs (inside and out) sq footage, mats, everything bidded out.  You should have 2 or 3 contractors giving you bids before making this much of leap ESPECIALLY using hard money!  Additionally you'd need to take carrying costs/ closing costs (both in and out) and time on market into consideration.  Seems like a big job to me for a first flip.  You sound anxious to jump in and that's great...but you really need to protect yourself.  

Investment Info:

Single-family residence buy & hold investment in Phila.

Purchase price: $25,000
Cash invested: $20,000

Beginning another BRRRR. 3/1 Suggestions always welcome!

What made you interested in investing in this type of deal?

A Dog that needed a lot of work! I believe I'll get a pretty good rent when I make it beautiful inside.

How did you find this deal and how did you negotiate it?

Found through a friend. Always looking for deals like this.

How did you finance this deal?

Cash! (only 20, not 25)

How did you add value to the deal?

Working on it. Will probably cost me about 40 in repairs.

What was the outcome?

tbd

Lessons learned? Challenges?

tbd

No.

Jordan, you are still young enough to choose any path that life will afford.  I believe college offers many unique experiences, -- networking opportunitites and (hopefully) educational enlightenment and if you don't take advantage of them now....it might be tougher (although doable) to get back to them later in life.  You can get your real estate license at any time.  Even while you're in school!  As a parent who sent 3 kids to college (and incurred a ton of debt), there are ways to accomplish all of these things, without putting yourself into a financial hole.  Some people have given you some great ideas here.  Follow those leads!  Use that same passion and energy to find a great college that's inexpensive (or free) and take advantage of the resources of "the system" to catapult your real estate career.  Be entrepreneurial  and creative in that system.  (btw, a great place to start househacking with some roommates!)  Good luck!  Let us all know when you graduate! 

Remember that the appraiser is not going to be "guessing" if students might be living there or not. You need approach the ARV from a scientific (albeit not precise) perspective because the appraiser will need to justify their numbers to underwriters. Keep the comps recent and nearby and you should be in the ballpark. If things go south with an appraisal, at least you'll have the numbers to back you up. "Hope" for appreciation should not be part of your equation.

Ricardo, 90k purchase. 65k rehab. (too much) 6 mos. (too long) Was going to flip, but after hearing the @DavidGreene24 podcast on BRRRR, decided to just do buy/hold. It just makes sense. Rented it in one day.

In Philly, we have GoSection8.com.  This is the most widely used resource for finding Section 8 tenants.  As a landlord with several Sec8 houses, I've decided to NOT go section 8 from now on.  The rents used to be above market rate, and the last two tenants  pay BELOW market (just a bit). You're not obligated to take the rent, but Between waiting for paperwork and inspections, I've already lost about 2 months on average putting a tenant in and I feel to take the house away from the tenant (who has also been waiting) wouldn't be fair.   The inspections are a pain for working tenants as well as landlords.    I think the program is okay for a part of a portfolio, but don't limit yourself because "getting paid" every month is only half of the story...

Posts about getting shot are not accurate in my experience.  Tenants are just people.