All Forum Posts by: Elliot Rivera

Hello BiggerPockets Members,

As you all know, having a strong rolodex of general contractors is paramount in our business. With that said, I am looking to add a few names to my bid process and was wondering if any of you have some GC's that you have had a positive experience with, that work the Gainesville FL market? I have one GC that I have had success with but sometimes his schedule is in conflict with projects I need completed. Additionally, I need to ensure bids remain competitive.

Thank you in advance for your feedback!

Elliot

I agree with some of the other investors that running the numbers (BiggerPockets has some calculators you should look into if you do not have spreadsheets or other software to guide you) usually makes sense on any property you are seriously considering. The "1% rule" is one of those basis points that is true more often than it is not. In your scenario if I were you, I would pass on the deal. The margins are way too thin and it will likely not cash flow even with better case scenarios. If vacancies or unexpected repairs occur it could get ugly fast.

Jeffrey,

Highly recommend the BiggerPockets book "Managing Rental Properties" (No I am not a sponsor, just a good read). In fact, I utilize the same background check offered in this book.  Good Luck!

Pre-approved for conventional financing or the Hard Money Loan? Not sure what you mean. With respect to niche and strategy, learn the numbers. Let them guide you and don't let emotion come into it. I have an MBA in Finance and have read over 20 books on Real Estate Investing and I can tell you the BiggerPockets books (The Book on Rental Property Investing and The Book on Managing Rental Properties) are two of the best books out there. Also, "What every Real Estate Investor Needs to know about Cash Flow" is a must. Be conservative in your estimates (50% expenses, 2% rule) and you will go far. If the numbers work move on them, don't let "Analysis Paralysis" take over. Good luck!

Michael,

It depends on what your exit strategy is. If your intent is to buy & hold then the above rental estimates should dictate your decisions. Meaning, is the ROI based on conservative estimates enough to justify the cost? What percentage do you deem a good return? Typically your expenses are going to follow the 50% rule, so will the property cash flow if you finance? A good real estate agent should be able to offer their advice as to why the property has been on the market for as long as it has. Your due diligence would still apply (inspection, analysis, etc.). Ultimately run the numbers, the Biggerpockets calculators are especially useful in this regard.

Good luck!

Lori,

I have heard good things about Oscar. Message me for his LinkedIn information.

Janice,

The 2% rule implies that in order to have positive cash flow the rent needs to be at minimum 2% of the purchase price. The second part of your question would be the math to determine if the property's rents add up to that standard.

Ingrid,

I assume PP means "Price Paid"