All Forum Posts by: John Collins

It's a travertine with a great feel and the only tile that matches the existing set up close to the price point. stone look Porcelain feels cheap IN THIS instance and clearly printed on. So to landlords out there... do any of you have problems with travertine over time (indoors, particularily in a kitchen area)? Obviously it will be sealed, but with the gaps and the fact that it's not filled in, it makes things harder to clean. Would you just be safe and go with the porcelain... it's a nicer home. Do renters comment on this? 

Yup, this is generally what I find. First house took me forever as I did everything on my own while friends and SO were in another city, but it was college for whatever you want to do with real estate in the future. I did nothing else 6 days/wk. Because of the slow initial process, I knew which contractors were taking me for a ride, the time span to do things, the details associated with it, what can go wrong (and things will once in a while) because of how slow and careful I was with my first few rehabs and I didn't have some "know it all" barking out instructions that were wrong half the time. Can't tell you how many "I've been in the industry for decades" contractors talk out of their *** and think because they still find work, they've got the solution!  

So push through, and remember, 5 months in the grand scheme of things is nothing! Doctors go to med school for 8 years and still get it wrong A LOT! The first year or two of re habbing sets you up to know what to go after, which contractors to use, how to get things done, and you can always take advantage of a deal. It's not how much you get done initially, it's making sure you get it done right.

Have you done the inspection? The side/basement of the house looks soggy or perhaps it's settled a bit. Want to make sure there are no foundation issues and that's why the price hasn't dropped by 8% or so . Also, it's the south side of Chicago so know the safety record and types of neighbors on the streets. Is $1.4k really a realistic rent, or is it closer to $1.2? The main factors here are not the raw numbers, but making sure the kind of neighborhood and the inspection report on the place gives you confidence moving forward. 

Well, the thread starter would be the buyer and someone has to be the seller, right? Ultimately, it is up to us to do our due diligence with the options presented to us and in very tough margin markets like LA, more options do not hurt. I myself am interested in duplex, triplex and fourplex options south of exposition boulevard as well as if they would even be available in burbank, glendale, pasadena area. My priority isn't working with the agents with the lowest rates (heck I could use a redfin type site for even lower) , it's working with who has the best knowledge about the areas and best properties. 

With the right knowledge from an agent, the extra 0.5% could be worth it (and 3% is standard on a national basis). 

 Can you explain how this is a niche and what kind of tenants would sign up for this knowing they could be evicted any day? Or maybe difficult ones who don't want to leave 2 months after moving all their belongings into a home? Are these like 6 squatters who pay $500 each to sleep on the floors of vacated houses? 

@Robin Casper

How does he rent out homes for an unpredictable amount of time? Unfurnished as well I imagine. How on earth would he even draw up legal paperwork for that if he might have to evict the tenant if they don't move out when property sold?  He's drunk and high on himself and blabbering about it to everyone, reminds me of that NBA exec who stole $14 million .. 

You really shouldn't be asking us about "some stucco issues", talk to various inspectors about what they know about the specifics then pay them $300-500 to check out the property and do a detailed report. Every situation is specific - the 3 owners of stucco housing I know of have not had 1 problem in the area. But if this has something 80k lower than you need to dig, DIG, dig! 

I don't think you'll find anything reasonable in the actual medical center area. Third ward is a better area for cash flow - buy low, renovate and you'll see possibilities. I had an apartment in the med center area proper and it was absolutely pointless -plus with all the new condo's that have come up, people have their pick and can really squeeze you. Housing is very expensive. 

And remember, this is Texas not NY. People like their space , they won't be rushing to cramp together in a house when for a few hundred more they could have their own relatively nice place ($1200 -1500). 

It really depends if you want to go into business with your contractor for future flips. You can ask around, get quotes, and calculate the amount of labor he'll be putting in. This is to give you an initial idea of how far off that 50% figure is from a PURE FINANCIAL PERSPECTIVE.

But there's always more to a business. 

Or you can think long term and know It always helps to have a local guy who is financially invested in the outcome of a property as opposed to just a paid worker, so you'll get priorities from him, better rates and someone who ensures quality finishing etc. This makes a big difference as if you get contractor's on a house by house basis, it's probably 10-20% markup in labor and material costs. 

 Absolutely, every aspect of investing is very much a case by case basis, not a one road leads to paradise journey. My intent was to ask those who FOCUS on flips, doing multiple properties at a time, if it really turns into a gig job for them seeking out properties , filling up a market then moving on to the next city or state. And what happens during the lulls when things don't sell? Everyone gets excited when a few flips net a huge profit, you see other houses in the neighborhood do it as well, then all of a sudden after a few years you've got these empty expensive homes that no one wants for the new price point because of new builds or location or yadda yadda.