All Forum Posts by: David Thomas

Welcome @Ryan Bateman !

You are part of an amazing community where you will learn and be able to network with like-minded people. Have you decided on a strategy such as long term buy-and-hold rentals, rehab & flip, etc? Check out some great tips here on beginning such as www.biggerpockets.com/real-estate-investing/introduction as well as the amazing podcasts!

As @Jeffrey Charter and @Steven J. mentioned this is not an ideal scenario. One bedrooms are not what sells when you look at typical market demands, and hoping an investor who'd make it 3 bedroom is less likely. You would have to be sure of zoning requirements i.e. - Floor to Area Ratio (FAR) limits baed on lot size, etc. Adding two bedrooms is at least 25K or more for a builder/buyer.

I would focus your time and strategy on homes of at least 3bds/1 bath that have room to add a second bath and or 4th bedroom. A 3 bed gives you a solid property to start with and take it from there. The lease may work if you can find find more 1-bed comps that are in Paterson and you can get it down to your desired price.

Hi @Paul Z.

Just curious why both your best and worst case scenarios have ARV/resale both at $200k but lowest comp at $176k? I personally use lowest comp as worst case unless the specific market, i.e. - your subdivision - is climbing in price consistently and is so at time of sale. What if the market slips?

Hi @Maverick V. - Welcome to BP!

It sounds like you may want to nail down your plan and refine it further and explore the most effective avenue for your goals. For example, why do you need to pay cash and tie-up your money that way? You mentioned you don't qualify for traditional financing but have you explored other funding - Hard Money, Private lenders/friends/other investors? If I was in your position I would find a market first, then commit to a plan 100% and then seek funding sources. No need to refi if you find a fix & flip to live in and can do it without paying all cash. You have more options out there.

I see the biggest roadblock as finding a house in your budget that will not be in a war zone or economically depressed area as noted by @Curt Davis (my words not his.

@Matt Rodak

My own funds first, then Private Money/HML as I build up my cash reserves further from flips. If you can get seller to hold note as @J Scott mentioned thats even better! As @Jessica S. stated, I don't like debt either since I spent a long time eliminating "bad debt." But Im okay with short term debt that is covered by the deal.

My take is that whatever you decide to do to get rolling, if your numbers are realistic and they can get you a profit within your exit plan as worst case scenario) i.e. - plan B and C make you money vs original plan, go for it!

Welcome to Bigger Pockets @Kunal Doshi ! Glad to have you as part of this amazing community ! You'll find several of us in the New York/New Jersey market very active on BP. We just had a large meetup in NYC so you should definitely be part of the next one. Keep an eye our for an invite from @Darren Sager for an upcoming meeting here in New Jersey.

Set up your keyword alerts to stay informed and up-to-date. Look forward to connecting with you and best of luck!

Hey Ben Mell , welcome to BP! My input is late of course but my gut AND quick view of the numbers are that you should look for other opportunities as a first investment that are less complex. Which now you are. Be sure to have solid accurate comps. You are in a great area near Philly (I used to live in Bucks county!) and many more opportunities will pop up. Have you checked out BP's flip analyzer? Best of luck . David

Great job @Darren Sager ! And much thanks to you @Brandon Turner for your time and support for the meetup. It was a pleasure to meet you and learn more about you and the future of BP.

Thank you everyone for coming out!

sorry, not citing any "data"

Do you really think the average homebuyer/first time buyer flipped a switch that quick on home purchases because they understood the impact of Dodd-Frank? I'm sure investors are a significant part of it, but more so the Fed taper on treasury purchases and subsequent uptick in mortgage rates ever since the last Fed meeting. IMO of course, not citing any day here.