All Forum Posts by: Tyler Willson

@Brent Coombs and @Mindy Jensen My priorities are certainly heavily weighted toward studying for medicine and becoming an excellent physician. Right now real estate is what I like to do when I have free time. I have been enjoying working on our current rehab project which is out of town. There is certainly some added stress sometimes, but overall, I would say it's a good way to spend free time. I agree that the ideal situation would be to get a du-, tri, or quad-plex and rent out the other units. 

The problem I am running into there is that I haven't been able to make the numbers work with anything currently on the market. I'm not sure if I am just being too conservative in my numbers or if there really aren't currently good deals for investing. I should post the last analysis I did and try to get some feedback from people in my area.

Thank you both for the input!

@Bart H. I think you hit it on the head with comparing it more to house hacking rather than flipping. It would certainly be closer to that.

@Ben Leybovich Thank you for the insight; that helps puts things into perspective. 

@Mike Dymski Yeah, flip probably wasn't the best terminology to use for this purpose. I think Bart said it better above by comparing it to house hacking.

I appreciate all the advice everyone; thank you very much!

@David Robertson I agree that including holding costs for such a long period would put me at a great disadvantage. If I factor in the rent that I wouldn't be paying to someone else into that equation, then that may negate some of those holding costs. That's how it makes sense in my head anyway. Essentially, it seems different given that I am actually living in the space, so to me it is just the cost of living somewhere which I have to pay anyway. I just have the opportunity to get that money back at the end of 2 years which I couldn't do if I were just renting.

@Mike Dymski The lack of taxes on the gain (if there is one) is definitely a good point to bring up. Unless there is greater appreciation in my area, more than I would be adding by adding rooms, then I don't think the gain/profit would be all that much.

Thank you both!

@Andrew Johnson Thank you for bringing that up. I guess the only difference between simply buying to live in for two years versus what I would like to do would be the mindset and running the numbers up front. I don't think most owner occupants run the numbers on what they could eventually sell a home for. They look for positive features of a home, and I would say in many cases are swayed by the emotional aspects of buying a home.

I also don't believe many owner occupants want to turn a 2/1 into a 3/2 in order to force appreciation. I'll run the numbers and see what happens when I add up PITI for 2 years + rehab costs. I'll post them later today.

Thanks again for the insight! 

Thank you @Timothy Winn; I agree that there is an element of forced savings. Are you steering away from forced appreciation because that term depends more on the current market conditions when flips are completed in a short amount of time? (ie. less holding time allows for less movement in overall market values)

Hello everyone, 

I am new to the real estate world, and I was wondering if those who have done live-in flips do their numbers any differently for those versus a normal flip. For me, I feel that the numbers would differ at least slightly because if I bought my current home my guaranteed monthly payment would drop by about 50% for P&I. Then the money that would go toward forced appreciation gets factored in, and down the line a few years when I would like to move I should at least break even. That would mean that I essentially lived for free for 2 years, right? I haven't gone through all the numbers, and I will. In terms of mindset, am I on the right track for this or should I consider the numbers just like any other flip?

If the answer to the last question above depends on my goals which it often does for everyone, my current goal is to get through med school living for as close to free as possible. I am happy to give some estimated numbers if they would be helpful; just let me know.

Thank you for your input!

Hello everyone,

This rehab is well underway at this point, but I have come across the issue of not knowing how to properly remove an above ground heating oil tank in the back of this property. Do you all have any suggestions for how to do this safely the correct way?

Thanks!

@Matt Clark It is certainly an enticing project given the location. I'm still working on my first BRRR in Richmond right now, but I am already looking for my next project. This is out of my league in terms of the capital required, but we just handled significant mold remediation in our current project. I'm always willing to get my hands dirty or find the right person for the job. Maybe it will still be on the market for a bit, and I can have a chance to figure something out.

@Account Closed What is your relation to Roanoke, Steven? You seem to know about the area, but your profile says you are out in Las Vegas.

Hi Brandon, I have not bought a house in Roanoke or Salem yet, so I'm sorry I can't help you with this questions. I am interested in the house you recently put under contract though in terms of what you plan to do with it and how your numbers work out for it. I am new, so it helps me to see other people's deals/numbers especially because I am trying to understand the Roanoke/Salem market.

Hi all, 

I was just browsing loopnet yesterday, and I happened upon this listing. 

http://www.loopnet.com/Listing/20460516/2309-Longv...

What do you think of it? I am not sure how much work it needs exactly, and I believe it is currently vacant. The description says it has water damage, and the pictures show some nice units couple with awful looking units. I have not seen it in person. There is also a 17 unit for sale off of Compton St.