All Forum Posts by: Erik Grantham

Hello BP community, I'm a General Contractor in Tennessee who has been wanting to get into REI. I have been learning as much as I can but feel I'm still not certain what I should do. Here's my predicament- I can be all in on a 1200 sq ft house and lot for $150k. That house will appraise for approximately $220k. If I sell after commissions, fees , etc I'd clear about $52k. If I want to hold it to rent it would bring about $1200 mo rent. After all expenses it would be very minimal if any cash flow at all. But I would have $70k equity and someone paying the note. I would get LOC or construction loan and wouldn't have any cost out of pocket. Many tell me to sell and get my cash while I can and wait for cheap deals when the market turns. I eventually want to have some cash flowing properties too though but like the long term appreciation and equity build. All comments and advice really appreciated. I'm stuck ! Right now the market in our area is strong I build about 10-15 houses per year most sell before we start. Thanks

@Anthoney Hanks I’m planning to talk with my lender this week and I’ll also look up Grant Greene. Thanks again! Best wishes for you going forward on your next project 

@Theresa Harris thank you for your advice 

@Theresa Harris sorry guess that would help 😊. Mortgage is $608 per mo. Property taxes right at $1400 yr. Insurance about $900 yr. I would do a few things like update some plumbing fixtures , water heater etc. The Hvac is 3 months old , roof is 1 week old. It needs some cosmetic things. But overall the major things would be new and I would still need to have a repair budget 

Hello all, I'm weighing a few options to get me jump started into REI. It has crossed my mind to rent out my existing home. I will be building a home soon and can sell or rent. I currently have about $110,000 equity in my home and owe around $90k. The rent would probably be at least $1400 a month. Would you take the lump sum by selling or would it be smarter to hold ? I've lived in the house 20 yrs (built myself) it would be tax free now but capital gains years from now if I ever sell after renting correct ? Would the value increase enough ? Just trying to wrap my mind around all of this. Thanks in advance

@Anthoney Hanks thank you for the kind words. I may be overthinking it a bit. Just trying to learn as much as I can and make sure I make the right move. This is something I would like to do multiple times if it’s the right thing to do. So would you refi for just enough to get all my cost for land and loan out ? Or I may be able to set the construction loan up in the beginning to cover the cost of land since enough equity? Looking forward to input. Thank you 

Hello all, I’m a long time lurker of the forum and podcasts but first time poster. I’m very interested in learning as much as possible about real estate investing. I am a general contractor with 28 years experience in residential construction and remodeling. I’m trying to learn my best options for investing. At the moment the market in our area is pretty strong and prices are high. There are some deals out there that come along with more education and networking I may be able to get in on. But for the moment I have really been weighing my options on building new to rent for long term investment. I’m looking for advice and input on the best path to take. Currently we can build a 1300 sq ft home with nice finishes for about $115k , with a lot cost averaging $35k. $150k total. Selling price is $220,000  after closing costs and all fees the profit is around $52,000. With this example if I wanted to build this house to rent would I buy the land and get construction loan for $115k and then roll to mortgage financing enough to get my $35k land cost back out of the deal?  Not sure what payment would be but the rent would probably bring maybe $11-1200 mo in my area. At the moment the profit of selling looks good but if the market slows or I get stuck with a spec home I’d like to have options and also looking to the long term.  I’m sure I’ll have many more questions. Thank you