All Forum Posts by: Jared Baker

Hello BP Flippers!

I have heard several times on the podcast, that when looking at your first flip, people recommend cosmetic flips.  My question is, what kinds of things should I look to improve, and how do you stop yourself from going further?

In my area, there are lots of homes built in the 1900-1960's.  Homes are clearly outdated and need things taken care of like lead paint, new windows, paint, etc.  One example that I am thinking of is you go into a house and say, "I am going to update the kitchen since it is small and outdated."  How do you prevent yourself from going through and rewiring the entire house when you only wanted to update the kitchen?  I don't want to "Put lipstick on a pig" but I want to do a nice job.  Where do you draw the line between those two when you are doing a cosmetic flip?

Hello BP!

I just have a simple question for you all.  What was the last thing that you did, heard, read, ect that finally made you start your first deal?  I'm interested to see what was the last thing that pushed you to jump into investing instead of being stuck on analysis paralysis or just not starting.  

I think I am very close to finally making the plunge on my first flip, but I do have a little voice in the back of my mind saying that I could fail.  But what was that thing that pushed that voice aside and said, "I need to do this".

Thanks for all the responses!  So now a new question comes to mind and that is which to invest in.  If I was to do a house hack I would be looking at a upper/lower duplex.  Otherwise I could find something back where I am from that is a side by side that is almost the same price and use it as an investment property.  The investment property would require more down but I shouldn't have any issue coming up with the down payment.

@Brandon Reed Right now I want to just analyze the market, see what people are actually renting at and what the expenses are.  I have no objections to doing that, but my question still remains the same and that is what questions should I be asking to make sure I have all the information I need to evaluate the deal.

Hello BP.
Easy question for you all.  I am scrounging realtor, zillow, and other listing sites to get an idea of the market.  I want to contact the listing agent to get a better understanding of the listing because not all the information is always there, so when I contact them, what are key pieces of information that I should ask about to make sure I will have a good understanding of the area.  One thing that I have heard from other sources is ask for the trailing 12 (if I am understanding that it is the last 12 months of income/expense reports), is that something to ask the listing agent on a duplex?  I would like to find out what the current owner is renting the units at and the expenses that are accurate so I can evaluate on actual numbers and not guessing.

Thanks BP!

Hi BP, I am wondering what peoples thoughts are on upper/lower vs side by side duplexes.  I grew up in a town that only had side by side duplexes and finding an upper/lower duplex was rare.  However, when I went to college, it was the exact opposite.  So with looking to possibly buy a duplex and I would like to know everyone's opinion.

• What are the pros/cons of either property?
• Is one more likely to bring better tenants?
• Are rents different between the two or do they bring roughly the same amount if they are found in the same area?

Thanks!

Thanks for bringing that up.  When I spoke with my bank, I told them I was looking at a duplex as rental property and they said 5% was the minimum.  I am checking with them to see if that is for an owner occupied and what their requirements are.

Hello BP,

I am looking for my first rental property and was wondering what people keep in reserve for a deal.  Since it will be my first property I will be able to get it for 5% down, which will only be about $8K, there are closing costs as well but I have the money for that.  Although I have the money for purchasing and the repairs up front, what kind of money should I keep in reserve for after the deal?  

Here is what I am looking at:

Purchase Price: 150-185K Duplex with Garage.

Area Rent: 1000-1200 per unit

Downpayment/Closing Costs: 8-9K

Mortgage Payment(Includes taxes, P&I, home insurance and PMI): 900-1100 per month

Initial Repairs: 2k

Left over Cash: 7K

My thought is to purchase as an "Owner Occupied" (that's how I would get the 5% down).  It is 2 hours north of where I am currently living.  I will be in that area anyway because I have family up there, but I would do the repairs need on the weekends and then as soon as possible get both units rented out.  I figure it will take me approximately 3 months only working on the weekends to get one unit ready.  Ideally the property will have one unit that is in livable conditions so I could get that rented out right after purchase and then update the other unit.  I will continue to rent where I am now and this would end up being purely an investment property.  What kind of reserves would people recommend to have for a first deal?

Thanks for your help!

Hi BP!

So as the subject states duplex or fourplex?  As a first property what is the better way to get started?  I have been watching some of Grant Cardone's videos on YouTube and he always suggests going big.  But since this would be my first property, is bigger better?  The two things I'm concerned with is 1) am I going to like doing this and 2) what happens when there is a long vacancy/unexpected costs.

Any input is appreciated.

Thanks!

@Daniel Callahan I think I have, but I am still deciding.  I am thinking I will buy a duplex.  But i will most likely rent out both sides right away.  I'll probably buy something up in the Appleton area since prices are more reasonable.  I'll continue to rent where I am not because commuting over an 2 hours to work every day doesn't make sense to me.