All Forum Posts by: Jaron Walling

@Francisco Camberos Sounds like attachment issues. You don't owe them anything. From my point of view you need to separate work and investing by giving them deadlines and sticking to them. If the tenants pay rent on time, communication is good, and the property isn't torn up offer the MTM rent and keep the boat sailing. 

Based on the responses to buying a house, mommy daddy down payment $$$, and lack of motivation I wouldn't work with them to buy a house. Keep your sanity and let them buy a house on there own (whenever that is).  

@Keagan Scott Why was it unable to be an STR? Inside Nashville city limits? I've probably driving by that property numerous times if it's on 46. We're not buyers but curious about local regulation.

@Javaughn Harkness I don't know what you do for a living but you can learn a lot by swinging hammers. Spend some money on tools and get your hands dirty. The education is nearly free, it's called watching YouTube, and reading books. 

A lot of people are afraid to learn these skills! Learning how to estimate rehabs based on labor + materials is massive. If you ever plan to remodel real estate it's invaluable. Doesn't mean you're doing the work forever but it gives you a competitive edge when looking for distressed deals. So many successful investors come from the construction/carpentry/plumbing/electrical industry because it was there advantage. Find, buy, or create your advantage. 

Depends on how much capital you're trapping to generate that return. 

In our market that's solid base hit given the higher rates and lack of supply. 98% of the houses I see negative cash-flow without creative opportunities (MTR, STR, rent-by-room) or BRRRR.

I feel that pain and we're not even looking at houses. 

I think it's smart to put money into the stock market. FED says they're reducing rates in Sept. which will make finding deals much harder. Advantage will be a higher ARV (flip) or appraisal (BRRRR), but you still have to buy right to make any money.

 There's no wall extensions with the powder room so I'd guess it "feels" open and nice. Seems like a logical place for it when guest come over. Depends on the size of the kitchen. Kitchens and baths sells houses. If the kitchen seems cramped I'd get rid of it. In my opinion a half bath doesn't hold the value of a big modern kitchen. 

You could even add an island or bump out peninsula for more sitting and storage. 

@Peyman Ayoubi The updated drawings look great. The wall between the kitchen and living should be as open as possible (could be load bearing) but the wider that door way the better. I did the same thing on our last property and it made big difference. Wiring and light switches are tough to relocate but opening things up never hurts. 

What was your purchase price, what is the estimated rehab cost, and what is the ARV? I assume you're flipping this property based on the scope of work.

We're still renting my first property from 2018, have cash-flowed every month, and "lost" every dime replacing the HVAC this year. Good stuff!! 

I believe your goals have to change with the market conditions OR you can't buy more properties. 2023-2024 has been crazy and we don't do crazy. Our goals have changed, maybe it hasn't helped our REI, but it's given clarity for what we enjoy and look for when searching for deals. If you're playing the long game embrace it and believe in your market.

You should already have insurance on this property BEFORE closing. 

Don't compare yourself to other more experienced investors. That mindset can really slow you down. I did the same thing before buying my first deal and learning how to remodel property. You didn't mention the time frame but if that opportunity was a few years ago they had upward pricing pressure (hence $200k high sales price) and lower interest rates bringing in more offers. That's not the case in 2024 and a lot of deals are skinny, or full of risk. Over price your flip and you sit on market for months, break even, or worse case take a loss. 

If the seller is stuck at $1.9M that's there problem not yours. Like others mentioned already it's not a good deal at $1.9M (needs to be lower) and if it goes to auction reality will set in pretty quickly for seller.