All Forum Posts by: Eric Perez

Definitely want to hear more about this, interested in approaching with a str strategy as well

Hey everyone,

I was curious in hearing some insight from both full-time and part-time flippers with a solid amount of experience. 

What are issues that are consistently the biggest chunk of your rehab budgets and what solutions have you found to mitigate them?

I've been curious if partnering with a specific tradesman (I.e. roofer, foundation expert etc.) would be a niche to work my way into. Any insight would be greatly appreciated.

Hello everyone!

I was looking for some insight into what others are thinking about the best approach at real estate investing as a soon-graduating healthcare worker that will soon be making moderate income (~70K) and am interested in starting with Live-in flips to eventually pair with using profits and income for buy and holds. 

here are three strategies I see: 

1) USDA Loan: While still eligible, I can qualify for a USDA loan in areas that aren't my ideal, but allow me to get into a home the soonest without the cash reserves and down payments. With todays market, I know that one bad period can throw me underwater on the loan although I'm contemplating if a live-in flip can force an equity that at the very least covers for any potential dip in the market. 

2) FHA on a multifamily:

It's a Bigger Pockets bread and butter situation. Save up for an 3-5% down payment and find a place I can BRRRR while house hacking when possible. The downsides here are high prices and low availability of multifamily homes in my area (new england), the loss of mortgage payments going instead to renting in the meantime (around 15k/year) as well as whispers of government stepping into the multifamily space causing some concern.

3) FHA on a Condo:

This is a compromise between the two: Lower cost of entry (~100K or so depending on the conditions), HOA is akin to rent but I still get to put money into building equity. Buying at this price point also allows for me to make extra principle payments, forcing more equity and a forced savings of sorts. This would be a 1-2 year plan until enough capital is built to get into a proper multifam when the time comes since I am not interested in buying or holding condos as a strategy long term.

What are some upsides/downsides that I am not seeing?

What other strategies should I consider?

What would you do in my position?

What's the deal with airline peanuts?

Anyhow , I appreciate any and all input and would love to hear what other recent and seasoned investors would do and have done. Thanks!

@Michael Gessner

I’m in CT. I was given an opinion that they may be earthquake brackets though that’s not too common an occurrence up in the northeast

@Sai T.

Haha, I apologize. They were quick pictures and didn’t think I was going to ask others.

They are on the floor and appear to go up the drywall, although unsure how high. You can see tack strips from the carpet removed to help orient yourself.

The condos were built in 1986

Started demo in a condo and ran into these metal brackets under the carpet at the front end of the unit. I have a couple of questions:

Does anyone know about the purpose for these?

What are potential reasons for this crack in the corner?

How can I properly install LVT with these to consider?

Appreciate any input. Thanks. 

@Diego Hodge

If this is the case, would you hypothetically be able to use the BRRRR method using an 203k later refinancing out into a standard loan using the additional equity that comes from the appraisal post rehab as part of the 20% or so down?

@Kassandra Perez

Hey there! New Haven county newbie here. I definitely would love the input from more seasoned investors because I have a lot of the same questions you have.

As far as finding local investors that you can network with, I can recommend a couple of things I have been doing. There are Social media groups on sites that you can join and I have been able to follow local investors this way. For now, I read what is posted and asked and am able to learn what the feel of the RE community seems to be like.

The second, and what has been MOST helpful for me was to take any skills I have and have posted an ad on Craigslist looking for an investor that needs a hand that my skill set will allow me to help out with. More specifically, about two years ago I decided to quit my job and learn all I could about maintaining a home. I’ve taken more and more jobs focusing specifically on picking up skills that’s would help me once I purchase my first property.

Through this I have met a local passive investor that I now consider a friend and a mentor, an Agent who flips and taught me A LOT about what goes into a flip (it was a COMPLETE gut that I need to make a write up on)

And lately, I have met a local broker who I do small maintenance jobs for at his properties and intend on learning anything I can from the brokerage side of things. Again, all from just offering my services with DIRECT intent disclosed.

From this, I’ve learned a lot about different aspects to investing, the locals who are doing it in my area, networking, AND making some money while I finish up school. I’ve also discovered that property management may be something that will be in my immediate future and a pillar I will use for my investing future.

So yeah, I would recommend finding something you can offer, any skill set, and possibly throw up an ad here, on CL, FB, or all three at the same time and make it as OVERT as you can that you are looking to meet local investors.

I wish you luck and would definitely like to hear an update down the line!

@Christopher Kolasa thanks for sharing Chris. Obviously am going to keep an eye out on what your next moves around the area are. Cheers!

@Nathan Walsh

Hey Nathan, thanks for the small summary.

I was under the impression that FHA required 3.5% and from your numbers it's looking like a 1.4% that was put into the deal. How is this possible?

Also, with repair needed on both units, was the 203k loan considered? If so, was there something that prevented it from being used as opposed to standard FHA?

Thanks again for sharing Nathan!