All Forum Posts by: Jaime Penix

I am also in the central florida area. Welcome aboard.

Sometimes to hit the 2% rule you need to invest in multifamily properties or get properties that you can rehab at a discount price. 2% is hard, even here in florida. I have really only one property that I get 2% from. A duplex that I bought for 60K, each side rents out for 675/month. Most fall in the 1 to 1.5% range. But again you can get some SFR say for like 30-40K, plus 10K rehab that you can rent out for 850-950.

maybe you should look in other areas. here in florida just about every house under se 130000 meet the 1% rule

10k sounds like a good starting point. But foundation issues always scare me. What type of foundation issue is it? Do you have an estimate of the correction from a contractor or from the foundation engineer? Also what is not known is the value of the house after repairs. Will it be around 50k? If it is around 50k, I would offer just 5k actually. 10k wiggle room is not that much, when dealing with such deep repairs. 

 What do you mean by term out? Are you meaning to pay the balance owed?? If this is correct, wouldn't that mean your 250k will already be spent? 

I can't imagine buying a property sight unseen. I guess I just don't have that faith in others at this point. Even depending on appraisals and home inspections won't do it for me. The appraisals in my area are all over the place and honestly at this point I think a lot of time they just put it near the asking price if you don't believe it is flat out ridiculous.  Within 5 minutes of seeing a property, I gain so much more of a profound understand of the property then just reading about it. There are too many shysters out there for me to buy site  unseen.

I guess I will echo what is mentioned about, "turnkey" can mean many different things to different people.

Thanks very much for your shared knowledge. It seems that is no doubt a pricey rehab. The discounts I see on them do not match. Maybe it is do it yourselfers that are being the properties.

I use to see homes listed with CDW but the walls were still up. Now I see a lot of the homes with CDW have been gutted, usually sparing the wiring and tubs. The prices are discounted but not as much as I think they should be. My cousin own a home tainted with CDW and he got an estimate for 90k for a 2200 sq/ft home. Surely this cannot be the best deal out there.  Silly me, I have been tempted to dabble with this, however all of the contractors I ask about it say the say thing. "I can't tell you until I see the house". Some even admit to not doing a CDW home before. And of course when you are available to see the home they are not. Nonetheless, the question is has anyone had any experience rehabbing these homes? The pitfalls of such an endeavor? What was the cost of the finished job? Is there some type of chinese dry wall remediation certification needed at the end of completion? 

Damn I need to do more BP reading! Good job bro.

I am not an expert flipper but you seem to have the same issue that I have been having, not having enough buffer to make it a viable deal. 10K is not a lot of wiggle room when dealing with flips. There is a lot of unknowns in your estimates. One, you are not completely sure of your renovation costs. You based it on a completely different renovation. Maybe you can view the property with a Contractor and they can give me a better idea of the renovation costs. If I was you I would offer 140-150k. If they don't accept, then that is no big just look for another deal.