All Forum Posts by: Ian Reeves

@Anudeep Yapala - We buy a lot of houses in that price range, our primary strategy is the BRRRR strategy as well. I think you are going to find that it will be very difficult to do the BRRR strategy from afar unless you have some sort of a partnership with someone with boots on the ground and aligned interests. If you are investing out of state I think your best would be to buy turn-key properties or form some sort of a partnership with someone here. I would be happy to chat sometime if you would like,

-Ian

@Kyle Grimm - I am  a mechanical engineer.  I work full time, but have been able to build and scale my business quickly by delegating, hiring a stay at home mom part time and partnering.  My life is a little crazy right now but it will pay off soon.  I am getting very close to my freedom number and it is an amazing feeling :)  It is definitely worth it, real estate has completely changed my life for the better, would not trade it for anything.  Good luck to you!

@Jason K Green - Please disregard my message.  I am not familiar with Parsons!  I am sure you can find someone more qualified.  

@Jason K Green, I think I fit that description.  I will send you  PM with my number.  Let me know if there is anything I can do to help,

-Ian

@Young Hwang - The only way to get things to grow really quickly is to create lots of equity in every deal or too generate income by some other means.  As @Chris T. said, the BRRRR strategy is great, but it would be very difficult to do remotely unless you partnered with someone in the area. Our strategy is 100% value add, we do ~1 flip for every two BRRR's. We have been able to grow our portfolio very fast by doing this, but it also required us to build a serious business. If your area is too expensive and you want to grow fast, you are going to have to figure out a way to inject money into the machine :). Keep in mind real estate is not the only way to generate passive income, or additional streams of income outside of your normal job.

@Evelyn Kop -  I am a mostly buy and hold investor in Kansas City, I would be happy to help  if you need an un-biased 3rd party opinion on things.  My average house here costs me ~$60,000 and my average rent is ~$850-900.  If you are willing to find the deal yourself, maybe with a little boots on the ground help and then turn it over to a PM I think you might find some better deals.  You also will not be locked into one property manager.  I PM'd you my cell number.  Feel free to give me a call, I can also help you out a bit with areas etc.

-Ian

Great cash-flow! We just finished the rehab on this property. This is a great property in a C-C+ area. My partners and I own many in this general area and they make great rentals. This is very close to the new Cerner complex which we expect will bring prices and rents up in the surrounding area in the next few years. We are mostly buy and hold investors ourselves, but do a few flips and turn-keys occasionally to fund our portfolio growth. This property is a 3 bed 1 bath, the roof HVAC and windows are all less than 10 years old, water heater is new. Property does not have appliances, but we can add them if you would like at cost. If you are an out of town investor we are happy to coordinate with a 3rd party if you want a second opinion, we are also happy to help you with turnover to property manager, recommendations etc. This property will rent for $850, we already have renters interested and can place them as soon as we get a contract and approval.

Please contact Ian Reeves for more info 208-899-3133

E-mail: [email protected]

@Ross Sims - That's not so bad then. If you can find yourself a roommate (or two) you can call it a house hack and start saving some money!  I did the duplex house hack trick for my first investment and it worked out great :) 

Ross,

I think you are going to be super tight making money on this as a flip if the ARV really is $130. The renovations you have listed sound like way more than $10,000 worth of work. Don't forget you have holding and financing costs. By the time you pay holding costs, closing costs and loan fees your eating up about $3,500.

Purchase - $98k

Rehab - $10k (I think your are more like 15+ from what you are describing unless you do all the work yourself

Holding/Financing - $3500

Realtor commissions/sell costs $9,100- Assuming 7% of sell price

Your total cost is $120,600

My recommendation would be to do the bare minimum required to make it rent ready (paint, carpet if its needed etc), and get it cash-flowing.  Assuming 3% appreciation, loan pay=down and cash-flow you will make the same amount of money in net gain in one year as a rental (or more), plus you get to keep the house.  That's not factoring in the taxes you would be hit with if you flipped it either.  

I think flips are a great way to build up your cash to buy rentals, but I think you need to find a better deal than this if you are going to flip it.  I personaly wont go after a flip unless I can make at least $20,000 on it.  If the rehab is large my requirements for profit go up proportionaly because your risk also increases (bigger rehab means bigger chance of unexpected things eating into your profit margin),

Don't get discourage though, I think this would make a perfectly good rental and making the leap is the hardest part so you have already made it much farther than most! Keep it up,

-Ian

Billy,

We have closed lots of deals without using realtors.  I would definitely recommend using a title company though and not an attorney.  We recently ran into some major issues trying to close a deal that was previously "sold" outside of a title company.  I think this would be a simple discussion with the seller explaining that you wanted to closing to go through a title company without agent representation. 

-Ian