All Forum Posts by: Joseph Weisenbloom

Guys I think Ive decided Im going to try to do a light flip and sell. Its going to depend if I can do a cash-for-keys scenario with my tenant and how much the rehab will be. My biggest expense will be electric. The house is seperatley metered for electricity so I would need to reconnect that. Im assuming fully rewiring most of the house plus permits to eliminate other meter. Knock down a few walls and add a few more. Im sure there will be a few other capex items.

If i can jump the hurdles there will be an additional 50k in profit in it for me. 

Of course you can do this but it may not be allowed by local zoning ordinances. Enforcement varies as well. I know some people that have stealth vans that are converted on the inside that are nicer than some homes.

@Account Closed Guys I forgot to mention I already have a cash offer for $125k with the property in as-is condition. Not sure if that changes the situation.

I have plenty of contractors from previous rehabs I can work with. The property produces cashflow but just not that much compared to my equity position.

@Seth Teel its in Beacon Hill. I bought for 105k and have a cash offer for 125k. The problem is other listings in the area that are more rehabbed are selling for 200k-300k. So its really if I want the quick cash now or the big cash later.

@John W. Not quite sure how much it will cost to rehab. It depends how much I want to get out of it. The main problem I need to solve is to convert it back to a legal single family house so an end buyer can get conventional financing on it.

Up and above that Its up to my discretion on the level of finish.

Or I could take the easy profit and sell now...

I have a duplex I am selling that has low cashflow and a ton of equity. The rising property value has increased the taxes to the point where it is eating a lot of my cashflow. I cannot sell it as-is to a conventional buyer currently because it is a duplex in a single family zone. I am now in a situation where I would make much more selling than collecting the measley cashflow.

The property is a duplex and is rented out until February 2019. So I have 2 options:

1. Sell fully occupied property now in as-is condition. Its in decent condition. I have a cash offer for $125k and bought it at $105k.  This sale would allow me to pay off a mortgage on another property and increase my cashflow.

2. Wait until February 2019 for leases to expire. Do rehab on house, convert back to single family and bring it up to level of rapidly rising neighborhood. Similar houses fully rehabbed are going for $200k-$325k. 

Thoughts?

I have a property that I am selling that has low cashflow and a ton of equity. The rising property value has increased the taxes to the point where it is eating a lot of my cashflow.  I am now in a situation where I would make much more selling than collecting the measley cashflow. 

The property is a duplex and is rented out until February 2019. So I have 2 options:

1. Sell fully occupied property now in as-is condition. Its in decent condition and garner a 40k profit. This would allow me to pay off a mortgage on another property and increase my cashflow.

2. Wait until February 2019 for leases to expire. Do rehab on house and bring it up to level of rapidly rising neighborhood. Profit 60k-80k. 

My gut is telling me take the the bird in hand and sell property now. I'm not too fond of flipping because of the risky nature of that business. I don't want to try to predict the economy but who knows where we will be in middle of 2019 when I would be selling this property. 

On the flipside I see the potential based on comps in this neighborhood so I don't want to penny wise pound foolish. Maybe I just have FOMO.

Thoughts?

@Bryan Tasumi You are correct Texas has certain conditions that make it more difficult to cashflow. This is not a very good place to invest compared to states in the midwest or other states in the south. 

Not to say it is impossible but it is more difficult than other states with low property taxes, cheaper insurance and cheaper water.

Cashflow is a funny thing. You can make projections all day long but until the rubber hits the pavement then you wont know really how things will go. You can go through periods when things dont stop breaking and tenants arent paying rent. Then you go through periods of peace and consistent checks. Some properties will be home runs and some will be duds. Keep growing your portfolio and get rid of the duds along the way.

@Aran Shinaar Ahhh this I did not know. Hmm well those loan terms seem really bad in the UK. Why are you buying one in Atlanta and one in UK? Maybe keep everything in one city for ease of management?

@Mak Sharma Since you are in SF maybe look in nearby Stockton CA or Reno NV?