All Forum Posts by: Jack Walker

I found a house that numbers wise will work fantastic. It’s listed at 99,500, 3/2 ~1500sq ft. The market rent is ~1200/mo. At the moment, the roof is in very shabby condition and thus in considered unlendable. Is there a way I can enter a contract with the owner of the house to fix the roof so it can become lendable and then buy it myself through conventional financing?

He brought the deal to the table. He knew I had been researching and doing my homework on real estate and reached out to me to get my feet in the water. He could have done this by himself but he asked me to come help him. He also hasn’t flipped a house in 20 years, and did this to help me, not because he necessarily needed more money.

Thanks guys! I really appreciate all the insight and multiple perspectives! I will negotiate with him on specifics and totally understand how much his experience is worth

So I am starting out in real estate, and my mentor(my grandfather) and I just bought our first house to flip. The house down payment was 12k and we are both in 50-50 on both down payment and renovation costs. He has done about a dozen flips over his lifetime and has about 4 rental properties currently as well. I have no prior technical experience in this, I have only read about 3-4 real estate books and listens to probably 60+ episodes of BP podcast. I should also note that I am 21 and can work a lot harder than he can, being 72, and he has a lot more experience and wisdom to share. I assumed when we started the deal that we would be splitting profits 50/50 since we are in equal money, and although he is directing and guiding the process, I am physically working a lot harder. When I mentioned this (being a week into rehabbing) he told me that it was quite unfair to go 50/50 since without him this deal wouldn’t be happening. I understand that even if it was a 99/1 split it would still be worth it for the experience and to say I’ve done my first deal, but since I am in equally money wise, I am wondering what a good split would be. Has anyone been in similar situations? Does anyone have any input? I am not trying to be greedy by any means as I am very grateful to get my hands dirty on this first deal no matter what the split would be, but Im still seeking value as any other person would. Any suggestions?

Thank you all for adding fantastic input @David Clinton III, @Stone Jin, @Dan G., and to answer questions asked from @James Wise, I am a first time investor looking for a house hack. I plan on doing renovations with a friend/partner. I plan on replacing my current income with enough cash-flow to reach financial freedom. I want to find houses with add value, but I don't want a hurricane disaster for a first house. I am really interested in multifamily homes, but if a deal comes along that happens to be a SFH with enough rooms that i could rent out, I would also go for that. Gathering from the input i have received from all of you guys, it seems going for B neighborhoods for both ease of rehab on first project and a more reliable rent pool. I like the idea of renting out only what you would live in.

I'm looking for a rental property so that I may house hack. I would prefer Multifamily homes, but they are quick to leave the market these days, so if I can't acquire one, then a SFH with enough rooms to rent to others. I am also only looking at owner occupied because of the FHA loan. If I don't have to live in it, and instead and completely rent out all units, that would be my goal.

@Kristin Whitaker thanks for the advice! I am looking for value add long term rentals. Specifically multi family homes that need some work. I like the idea of not buying a home I wouldn’t live in.

There are several different neighborhoods with varying rent prices and also varying year-to-year(YTY) rent increases. Which should I go for? The highest rent prices? medium to high rent prices? Should I instead buy in a neighborhood with a 14% YTY rent increase? or the one with 3-5% increase? I live in Spokane, WA and rent prices are fairly cheap. Average rent is 920$ ranging from 500-1500$. Granted, there might not be deals in every location I mentioned, but just for scenarios sake, where would someone recommend I look?

I was thinking about the lone travelers. I have had people come to my town for work for a week, so I have had luck with just single customers. I should also mention that I am somewhat of a clean freak, so everything is always cleaner for the guests.