All Forum Posts by: Dylan Bennett

Hey John! This could be calculated pretty quickly on an excel sheet if you are not able to use BiggerPockets calculators. I'd love to help out anyway I can.

current loan amount 40k... renovation costs - 25k... refi loan amount 100k... ARV 130k

100k - 40k - 25k = 35k cash

(35k - 25) / 25k = 40% ROI

There may be some issues with my calculations but I believe this is correct? I'm open to adjustments in that calculation if I missed anything

Hey John, if you are looking to do a flip for less than 100k, you better start looking in rural areas. If you are looking in metro areas you are going to have a tough time finding a flip under 100k. That is not to say that they are not out there, but it will be much harder to find. 

If you are wanting to do a flip I recommend finding a partner or two and going in together. This allows you to purchase properties that are a bit more expensive. These will be easier to find, and if bought right and priced right, easier to sell (although anything priced right should be easy to sell)

Investment Info:

Single-family residence buy & hold investment in Lubbock.

Purchase price: $48,000
Cash invested: $105,000

A BRRRR opportunity which I found doing wholesale activities (cold calling and post cards)

Hey Geoffrey! Yes sir this would essentially be wholesaling. My advice to you is to get the property under contract at a negotiated price with seller. If you think you can for profit, you can sell the contract to another buyer (typically an investor). This is called assignment of contract. This would be done for a fee of whatever price you and the new buyer agree on.

If you need more info I would recommend calling a title company to see if they handle wholesale deals. They would be able to let you know the best route for you to get the deal done. You will need a contract to purchase the property. You could probably look up a contract promulgated by your state, or elsewhere, that you would be able to use.

Hey Sergio. Investor friendly agents don't necessarily find you all the off market deals. Those typically come from investors via direct mail, or wholesalers. If you are looking strictly for off market deals, a realtor is not going to be your best option. However, that doesn't mean to not use realtors. Realtors are looking at the market and MLS daily and will have an idea of what properties will be best for investments. They will be able to calculate numbers, what to expect in reno costs, cash flow projection, etc. Great investor friendly realtors will have experience with certain strategies and will know best how to make these strategies work within the market they are in.

Like someone else mentioned in this thread, off market doesn't mean its a good deal. You may have less competition, but the numbers still may not make sense.

Hey Luis. I wouldn't necessarily say run. But I would also say be VERY careful. Just because it cash flows does not make it a good deal, in my opinion. For a deal like this you need to up your due diligence and make sure that you have all the info needed. Ask questions, get info. Get knowledgeable people around you and ask for advice. It is not impossible just cause you are new.

Hey Daniel! I'm going to list a couple questions to ask yourself to maybe help the decision.

- What do you think will happen to the El Paso area? Will is continue to grow? Are rents increasing? If you sell, can you get a better return in the area you are in?

- What is your current income? Can you keep your VA loan in El Paso and use a conventional loan to buy in the area you are now in? If so, what cash flow would you have if you bought a duplex on a conventional loan? Is your remaining entitlement not enough to buy a duplex in your area?

I believe prices won't be going down. It seems like the property won't cash flow if you refinance, so, to me, that doesn't seem like a great option. 

I hope those questions to ask yourself may help. Good luck and happy investing

Hey Bailey! Congrats on making the jump, it can be scary I know! From personal experience, I would say there is only so much you can learn through books, podcasts, etc. The best experience comes from going out and doing it, so hope you are ready. There will be certain things you will have to learn thru failing. For example, you go thru a big interview process with multiple contractors and hire a certain one. Turns out he's not very good. What can you learn by going thru that process?

There is no one way to do this flipping gig. Find what works for you and roll with it. Adjust when necessary and improve where you can. When you look for contractors, ask around. See who other flippers in the area recommend and who they don't. Ask why they recommend or why they don't. There is no specific path to follow. You will make your own way. Use other peoples knowledge to improve your path. Don't be afraid to stumble!

Good luck with your flipping journey!

Hey JJ,

Obviously alot depends on the market of where the property is located. I can't touch on how much you would be able to sell it for because I don't know that market. To answer your questions though I would say:

1. No. Just by removing a tenant that would not increase your value by 17k. I am not sure if I understood fully regarding that question but if you're asking that at face value the answer to me is no.

2. In regards to what you should rehab, that will depend on its ARV (After Repair Value). I would contact your insurance to see if you are able to get a new roof on it thru insurance. New roofs are great for resale value. You can also look at making cosmetic upgrades (siding, interior cosmetic) If the property value can be increased to, for example, 150k by putting in 20-30k work that seems to me like it would be worth it. Also, by improving the property you should be increasing your potential rental rates. Again, this would depend on the area surrounding it. I.E. - is the rental growth and value add limited by surrounding area?

To sum it up, it all depends on what the market is in that area and what the ARV would be for the property.

Hey @Zackarias Aitchison

Like Jared mentioned, it depends heavily on the type of investments you'll be doing. I would say the best fit for you would be an agent that has had experience in a specific investment strategy. I.E. - If you want to flip, find someone who does flips. I say all of this to also say, do your own research beforehand. Don't expect realtors to answer all of your questions. Realtors are a great resource, but like Jared mentioned, realtors only get payed once a property closes. 

Agents are not able, nor do they have any desire, to do the investing "for" you. Realtors are part of your team. It is important that you find your own team, and if an agent recommends someone then you can interview them. We can be a valuable resource to help you find deals and provide you info to hopefully prevent you from getting into a bad deal.