All Forum Posts by: Jaime Penix

I guess I am a buy and hold investor on the surface. But really, I go whatever way the deal is. And as of right now, the deals are for me to buy rehab and hold. I find properties that has the best actual/perceived value (I guess it depends on you view such measure) to purchase + rehab cost ratio. Then I left with a discounted quality house. I have kept all purchased properties thus far (I have only been doing this for about 1.5 years), but if someone is willing to purchase the property for 35K above purchases expenses then I will sell.  If not, I will hold until value ramps up or forever. Some of the places that I have maybe added 20-25k equity with the rehab, but with that tax burden and selling costs I would be done to a 10K net profit. Why would I do that when I can get 500-1100 monthly net (Average I would say 700-800/monthly per property). It is easier to say you can make such and such money per flip than actually making that much per flip. First of all it is difficult just finding a house with a margin like that, so you may fire blanks for a long time before actually obtaining the type of property that you can flip. Secondly I am reliant on a lot of middle men, i.e. contractors, selling and buying agents to do a flip. I am not against flipping but to me it is a lot my difficult to get into, especially if you are not the one doing the rehab. Maybe it is just the market that I am in currently maintains the previous statement as true. Maybe when the market truly recovers flipping will be a cinch but right now there a lot issues to navigate. 

 Looks like a Port St lucie house...did it have chinese drywall as well?

Very nice and congrats. I like view before and after photos, it almost like art. I would have like to see more before pictures though. It gives me the courage to tackle any renovation for the right price of course.

@Chad Duncan a lot of details are not known in your scenario but right off the top of my head I would not call it a good deal. The rule of thumb of 1% percent rent to home price ratio can applied, suggesting the rent should be at least 3300/month. Also how much are the repairs to be made. How much are you putting down? You should find out the true value of the property (mostly through comps) and deduct repair costs, then you can get an idea of what you should offer. Even then, I offer even less than that figure. I guess it all depends on what type of profits/profit strategy that you are happy with.

@Kenneth Drysdale I can understand the stigma about CDW. My strategy could be to rent until the new folks that have no idea what chinese dry wall is come to the market. Then I sell. From what I heard all the drywall in the entire house would need to come out. 

@Don Hines why would they have to level it if it was a meth house?? 

Very nice....sounds like an excellent deal, you probably recoup the cost the building in 1.5 years....I am curious at 9k did it not require any repairs?

I drive a bugatti, but that is just my work vehicle....haha

@Walt Payne it seems as though the CPSC has changed its recommendations. No longer do you have to change gas piping. I am looking at the remediation guidelines more closely now because I just landed a contract on a CDW house. It is a short sale and they want 78K for it, plus 5k for back HOA and 1.5K for attorney fee. I see places selling for 150-160k for the same type of house. When you say $25 per sq/ft, are you referring to the house living sq. feet? or the sq. feet of all the walls? 

Congrats, I hope that someday I can produce numbers like those. But on a side note, on the sunset house it says that it has asbestos siding, is that an old building description?