All Forum Posts by: Jacob A.

@Henry Nguyen

I appreciate the kind words. I am working full time while flipping (I'm a CPA with a local public accounting firm). My family is holding me back a little bit which is why I don't have any others going at the moment. The support of my family is big to me and I promised them I'd sell this one first before I started another one. So hopefully, I can unload this one in the next month or so and make some good money and then really kickstart things in 2014.

@Bob C.

Good catch, I missed that question. What you see in the kitchen actually turned out to be burn marks. Not sure where they came from or what happened in that house. There were a few very small spots of mold on the ceiling but no substantial amounts. They were disposed of properly by my contractor. When we replaced the roof we made sure to replace any damaged boards.

@Eric Elmquist

I am basically in your exact situation right now minus the kids. I took out a HELOC on my primary residence at 3.25% and my payments are interest only. Think about that, you can borrow $100k and only pay about $270/month. That is a huge advantage over other lenders in that they will be paying upwards of 15% on borrowed money from private lenders and hard money lenders. I would give you the same advice that went through my brain. Think about what your monthly payments will be with everything considered. Will your regular income be enough to take care of that? If your answer is yes, then I think a HELOC is a pretty low-risk entry point. Other than cash in the bank, I don't think you could be in any better of a position to start investing.

As for the 400k flip in your area, I know it may look appealing but if you are going to make a 400k house look like a 1.2M house that is going to be a massssssssive scope of work. If it is your first one I would proceed very cautiously or even partner with someone who is much much more experienced to help get your foot in the door if you know of someone you trust. There's no shame in starting small to get your bearings straight but going straight for the home run may be a little bit over zealous. Whatever you decide, you are in great shape to begin your investing career for sure. Good luck to you!

Hey @Brad Fisher

Welcome to BP! There's a lot of good folks from the triangle area here on BP. I'll send you a PM and we can talk a little more. Again, welcome and don't be scared to jump right in to the forums.

I 100% agree with @Account Closed . I have my first flip on the market at the moment and any money I make on it will be going to paying off my primary residence and paying off my fiancé's student loans. I read an article recently that quoted Mark Cuban regarding the best investment advice he ever received and he said "Freedom from debt is worth more than any amount you can earn." Couple that with that fact that you can borrow against your equity in your home like Minh said and it makes the most sense to me.

I'm not really into the buy and holds yet but I know @Bryan H. has done some investing into SFH's in the area so maybe he will chime in for you. I remember him speaking to the fact that he has had some trouble finding rentals that make since at the moment, but hopefully he can give you some more insight on that. Again, welcome and hope to hear more from you in the future.

@Curtis Mears

Welcome to BP! This is an unbelievable place to get an education and meet like-minded folks. What kind of investing are you looking into or have you gotten that far yet?

Also be sure to check out the TREIA website and attend some local events. Welcome again and good luck!

We have been very clear when talking to the buyers that we are VERY open to any offers. I've even already had the city water/sewer connection priced out and told them what it was and that I would be open to negotiation. That's as far as I've gone as I'm scared blatantly saying to them that I will drop 10k off the price will scare them of. I really have no idea what the preference is based on but I think it's just public perception to the uneducated person that city water/sewer is better for some reason. We've had the septic tank pumped and cleaned and the well water has been checked out. Hopefully, 2014 will bring more showings and a potential offer.

The tile is just directly from Lowe's. It's 12 X 12 Calacatta Tile.

Update: We got another showing today and it's the same feedback as the last showing. People seem to really love everything about the house with the exception of the fact that its on well water and a septic system. It seems like people around here REALLY prefer city water and sewer more than I was aware of. This is what we call learning the hard way. Hopefully, we will get something soon as the rest of the feedback appears solid.

@Daniel Cruz

By looking at the MLS I meant checking out free sites like Redfin or Zillow to look for homes for sale in your area. Then get comfortable with coming up with the ARV yourself by looking at comps either on those sites or on your local tax website. It sounds to me like you are just looking for re-assurance that what you are doing is correct which is completely understandable. Go find a deal analysis on BP here that someone has posted and apply it to a deal you are looking at and make sure you've accounted for everything.

As far as finding a mentor, I'd suggest going to local REIA meetings in the Knoxville area. Tell people what you are trying to accomplish and that you may even have the ability to put money in on some deals in return for education. I'm sure some people would be more than willing to work with you.