All Forum Posts by: Jesse O.

@Account Closed , all listings are across a major street in the area.  

Looking at a potential rehab/ sell in the Jacksonville (32205 zip code). Nice street, lots of character. Looking at recent sales and listings, but on this particular block, there hasn't been any sales since the 90s. Compound that with it's smaller than others sold for descent money on another block. How do I determine ARV without loosing my shirt!? I don't really want another rental right now.

Thanks!

Jesse

Good point @Joe Gore. Everyone knows that everyone makes profit. Pretty sure they can go back and look how much I bought the property for and then look to see what it sells for. Then they know MY profit (with some estimation of holding costs), if they so desire. Having never used a GC, I'm just trying to get an idea of pros vs. cons of using a GC with respect to my money!

Hello everyone!

Thanks in advance for your input. I'm search very hard to find my first property to rehab and sell. I have a couple rental properties and consider myself pretty handy in terms of installing flooring, minor electrical, painting, etc and I enjoy coordinating repairs and getting out there and meeting people that do this type of work. That being said I have a full time job and have a wife that is looking forward to painting and picking out fixtures and such when the kids go back to school in the next couple weeks.

I had a GC give me an estimate on a potential property and the price came out to around $30k that includes roof, entire HVAC, bathroom, kitchen, flooring, drywall and paint. I did not get a breakdown of expenses and looking to see if he will do that for me. I don't want to waste any more of his time and I'm not going to move forward with him.

My questions are:

What is the typical GC profit margin?

What would be the typical savings on this type of work be if we managed getting the right people in to do the big work and us painting and doing the small stuff (fixtures, new outlets and switchplates, door handles, etc) ourselves.

I know time is of the essence and we would be hiring out the big stuff anyway. Would the savings of managing the rehab ourselves (especially when my wife is available and experienced working with some people vice hiring a GC to do it be worth it? What about when using a HML and you're right about at the 65-70% ARV - rehab. Toying with the idea of covering the rehab with my cash and using hard money for the purchase.

Thoughts? Thanks again.
Jesse

@Dawn Niermann , the meeting was good.  Great "Quick Start" class on finding homes and different purchasing strategies.  Was definitely worth the time.  Now to find that house!  

Welcome.  Click on the "Learn" button at the top and purchase "The Book on Flipping Houses" and "The Book on Estimating Rehab Costs."  These books are a great start if you haven't read them already.

In my opinion, I would go for a SFR vice an apartment or condo. Watch out for condo HOA fees. Just another holding cost.

 You need to look at your market and see what is going to sell the quickest after rehab (i.e. what's in demand).

Hello everyone,

Newbie here from Orange Park, FL and am thinking about checking out the Jacksonville REIA meeting this Tuesday. Anyone out there regularly attend? Is there normally a good turnout?

Thanks!

Jesse

Welcome @Dana Chen. With respect to #2, I was thinking about starting a property management business a while ago, since I manage a couple of my own properties.  In Florida, from what I understand, you need to either be a real estate broker to manage properties that you don't own, or at a minimum have your real estate license and have your license hung at a brokerage.  For the amount of work and the money that I would have had to pay to hang a license at a brokerage, just didn't seem like something I wanted to continue pursuing at this point.  I'm in Orange Park and looking to get started as well on fix and flip.  Just need to find the right property and funding!  Good luck!