All Forum Posts by: Dustin Battas

Hello,

I am in the process of flipping my first house. I was a fool and had a miscommunication with my partner and we didn't get one subcontractor's tax info on a W-9 before we payed him. I payed him the $3,000 we owed him with a personal check. Now, as I am sending out 1099's to the contractors he has not responded to my request with his tax id or soc sec number. Therefore, I can not fill out a 1099 for him completely. I have his name and address. 

What are my options here? Obviously, I would like to write off the $3,000 expense. The due date to send out 1099's is today. Do I continue to try to track him down for his info and pay the 30 day late fee if I'm able to do that? My only proof of payment is the cancelled check and bill he gave me. Thank you very much for any advice...and I know never again will I not have a W-9 completed before payment!

I spoke with a couple of agents yesterday that have products for flips after taking your advice and suggestions. I appreciate all of you reaching out! Thanks

Hi Alex, yes they do. The "loan processor" contacted me yesterday requesting insurance. I'm going to follow up with the actual mortgage loan officer tomorrow to make sure they are all on the same page.

Sorry, Amy. I mis-typed We spoke with State Farm..not our realtor. Thanks for the tip on USAA.

I currently have my first flip under contract. We are financing the purchase through a local bank. Obviously, they want proof of home owners insurance before we close. I called my personal real estate agent and they are unlikely going to be able to underwrite the house as its current condition is "below average." He said they really tend to stay away from flip type homes. Do any flippers have advice on how to obtain insurance on the home for a few months while we rehab it? Suggestions of companies etc? Thanks!

Great. Thanks, Kevin. I will definitely reach out as I approach my first deal. 

Hello Everyone,

I'm new to BP/investing and have been reading and listening to podcasts for the last 4 months. I live in Edwardsville, IL and am interested in flipping and acquiring multi family properties in my area. I actually just put my first offer in on a distressed property today so I am starting to take some action in becoming a real estate investor. I currently teach full time but think real estate investing is something I would like to pursue along side my teaching career. Thanks for all the advice, tips and knowledge already shared on this site and I look forward to becoming part of the BP community.

Brent, makes perfect sense. I appreciate your feedback. Thank you very much. 

Hello, I am new to investing but have been reading BP daily and listening to podcasts. I am in search of a 4plex and have tracked a few that have sold the last two months. I am currently interested in a 4plex and want to keep any feedback anyone can offer on the deal. The 4 plex was built in 1993 and is listed for $239,000. It has four 2 bedroom 1 bath units and each unit collects $525 per month on rent. The tenants pay their own utilities, garbage and water. Rent includes covered parking and a storage area for each unit in the basement. 

Monthly income from rent: $2,100

Mortgage payment (20% down), taxes and insurance $1,210

Vacancies 10%: $210 per month

Management fee 10% $210

Total Expenses $1,630

Net operating income: $470 per month

A few things I would love feedback on: What am I missing in my analysis (how much % to put aside for repairs each month etc.)? This property seems overpriced to me but what number would make it a great deal? For rent to be 10% of purchase price (10% rule) I would need to get it for $210,000. To meet the 50% rule I would need to get it much lower. What types of questions should I be thinking of here as I analyze this deal to try to learn more about the process of buying a 4plex. Thank you in advance!