All Forum Posts by: Jarred Sleeth

We generally try to make sure we are getting our units to a nice condition without going overboard. We don't use top end appliances but shop for newer lightly used appliances in good condition to save money. If the neighborhood calls for it, we try to upgrade bathrooms and kitchens but we don't buy top quality materials. The trick is to get a good look that is durable but not the most expensive. Stuff will get damaged and broken in this business and there's no reason to outfit everything with the same level of materials you would use in a flip. 

@John O. Welcome fellow Photog! I'll be checking out your work. Would love to connect and talk strategies and photography sometime.

Good group here from the area on BP. You'll like it!

Yes, what Kevin said. You will not cash flow with these numbers and you'll quickly chip away at your money, and be stuck selling for a loss in the end.

Regarding capital preservation. Sometimes you just need to leave some cash in the deal. Eventually you'll have strong cash flows coming together that you'll quickly be able to build capital with. It will all snowball. My advice here though, for this deal, its not looking great. A 10k profit if you flipped wouldn't be bad, but are you accounting for commission costs in the sale or any emergency repairs that come up? You don't have much breathing room on this one. No problem, it happens. Go find a better one!

Welcome! Strong showing here in Baltimore, and BP is a wealth of information. Good luck with your first deal!

@Alexander Felice, sounds like you're utilizing a BRRR strategy? Good strategy to get your cash in and out then move on to the next deal, keeping the rest as built in equity of ~25%

We recommend keeping as little cash in the deals as possible because now there are many ways to maximize returns instead of paying down mortgages. As long as you meet your cash flow criteria and don't over leverage, you'll be fine. When you start to build some equity you can always refi that later for more deals, again, if it still meets your cash flow criteria. Lending is cheap now and cash is king.

I would be pretty concerned with your cash flow here. After PITI, you're only left with 150 dollars? If I am reading this correctly, there is just no way you're going to cash flow. I'd consider leaving some cash in it so you are less leveraged, and have higher cash flow, although personally it doesn't seem like that great of a deal due to rent/cost ratio.

Congrats on getting paid! Those checks that come in are why we do this. I remember my first check from real estate, it came with a thank you letter that I still keep today. Bring on more deals! Good luck!

We use Buildium for our holdings, though there are other good options out there. What is the best? I think it's pretty subjective. Try out some free trials, do some forum searches here on BP. There are plenty that have been discussed. Good luck!

Welcome! These guys are spot on. There's no secret formula and you should do what works best for you. Stay away from expensive guru seminars, everything you could possibly need is right here! Good luck!

This is a great deal. I just purchased in this neighborhood, would love to have another. I'm with Ned on this one, need more cash on hand. Good luck!