All Forum Posts by: James W.

@Account ClosedI forgot to mention the downstairs has a bathroom. My plan is to stick nothing at all into it if possible! But my realtor friend thinks a buyer with an fha or va type loan might need some things done to get the house to qualify for a loan... such as the roof. The electric panel is maybe 25-30 years old, and my GC mentioned it might not pass an inspection. If that's the case, we replace the panel with an updated one for ~$1500.

At the end of the day, if I had to sit on it for longer than expected, broke even, or even lose a little money on the deal, 45k isn't going to break me. I just figured I'd throw it out here and see what the BP crowd had to say about the numbers.

Good question, and that's what I love about BP already - you people are all about the details, and that's important. I'm learning! :)

"As-is" would be for someone getting a conventional loan or paying cash, but since this neighborhood attracts more va/fha loans, the inspections may or may not play a factor, so we may or may not have to kick in that extra money.

I assume we aren't going to get a cash buyer, so the extra 10k is this:

1. The roof is good but if we have to slap another layer of shingles on top: $4-5k

2. There's a really nice sunroom that may need structural work: $1k

3. The Electric panel is iffy - updating it to not iffy = $1500

4. A few extra dollars to do some minor updates or changes to close the deal.

More info on the property: Foundation is solid, all brick outside, basement has no trace of leaks, it's a 3BR1BA upstairs and a very nice downstairs that is partially finished with a working fireplace. 

Anyway, back to the question - why spend the money? I don't want to, unless I have to, and I realize I might have to.

I am just hoping to get a few experienced opinions on the numbers I've presented. 

This will be my first "quick flip", and my initial thought is that there's not enough profit to justify it many times... but just to get my feet wet, I'm going for it.

I'll apologize in advance for not knowing the proper lingo, abbreviations, acronyms, or even the right way to describe a deal... like I said, I'm new here :D

The house is owned by an acquaintance of a friend, and the friend happens to be a realtor who is killing it in my market. His opinion is that the house should be on the market for no more than 6 weeks before sold as-is for about 120k.

The neighborhood supports houses no higher than upper 130s.

We have a verbal acceptance on ~85k, and after talking to my GC I don't think we're at risk for anything more than 10k before the house would be sold at a minimum of $120,000.

We will split the costs, and the profits. If it's actually listed on the MLS, he would get a commission so we will adjust the proceeds to ensure we both come out 50/50.

$85,000 purchase

$10,000 repairs

__________________

$95,000 invested (47,500 each)

$120,000 sale

_________________

$25,000 profit / 2 = 12,500 each

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There is no guaranteed sale, and we both know that. In my opinion, it's a lot of cash to tie up for not a huge return, but being new at this game... I'm hoping to get some expert and experienced feedback.

TIA :)

@Wendell De GuzmanI'd like to learn about how you do Rent to Owns - where can I do that?

Thanks for the contribution to BP here! 

@Joseph CochranI agree, I'm loving everything about this site so far! I'll put it on my calendar. How do we join?

@Brandon Turner Thank you for the link, I started to play with it a little and realized I should consider learning more, and a Thursday evening webinar is probably a good start. What time and where? 

@Aaron Thivierge Thank you for sharing, that's what makes communities great. Your links aren't working for me, I'm getting a dead page. Am I alone here?

I'd like to see an example report... might be enough to convince me to upgrade :)

Dropbox (business) synced with Google Drive is how I'm rolling right now, but I'll admit I have to spend a fair amount of time organizing and I know I'm behind on some things.

Dropbox business is great because I can coordinate with my staff and my wife on things.

I've been dabbling with some rental apps like pendorent and others... any suggestions or feedback on apps like that? 

I like OP's style so I'm just following along. I have a few similar opportunities and want to hear what others have to say :)

Hey @Rich Coppage, thanks for the post!

Your title says "Landlord" but it's apparent that you have some solid lending/analysis experience.

I'm working my way into more complicated deals... do you happen to have a sample deal that you can share, that takes the points in your post into consideration? A spreadsheet and a fact sheet that demonstrates your points would be amazing.