Hello again biggerpockets
im going to start out using a HELOC from my old man's house he will be having around a 200k heloc pretty soon and i will flip my first home some time late january or early February using a 100k or less of that heloc
I have recently made an amazing encounter with a broker that is in charged of selling off a local credit unions foreclosures and i have to say even with my inexperience’s in flips there is money to be made in my local market
Currently looking at a property that is foreclosed on might go for 55k or 60k bank hasnt approved a price yet took a contractor that i trust and another one i never dealt with and around a similar bids 25k-35k repairs needed
1950’s home has been updated electrical wise plumbing still not sure will get inspected and foundation is sound on slab
Needs roof redone
Kitchen
1 full Restroom
1/2 restroom
Driveway work
Detached Garage work (door and cement work)
Redo kitchen cieling
Redo living room cieling
Move electrical outlets
Redo floor or overlay with laminate (ugly old tile)
New paint in and out
(ultimately on what i choose material wise prefabbed or custom)
a recent house 3 houses down the same road was recently flipped and sold for 140k is sightly larger 1280 sqft vs 1080sqft (one im looking to buy) the realtor i deal with works for this broker as well and comps match the area for what the house sold and ultimately said if i fix n flip this property i should see minimum 125k selling price high of 145k (market is hot at the moment)
Given i should over estimate the rehab 35k rehab 55k purchase
All in at 90k
Sales at minimum 125k
Potential profit 35k minus holding cost expenses and commission to realtor should be arund 27.5k profit
If this works out i would repeat and do more flips jn the future to build up enough cash (really want to build up 500k cash not counting HELOC) to were i can do multiple flips at a time and keeping 1 free and clear to have a high cash flowing sfr rentals sooner then just 200$ a month per door really want to have 800$ a month cash flowing properties
I know alot of people like over leveraging and using OPM’s but this is my realistic niche i can accomplish especially in the hot market im currently in
I run a restaurant as my full time “job” but can definitely get out and manage my contractor and have worked with him in the past, for sure one i get the hang of flipping ill probably stick a manager in my place and go full time flipping myself if it goes smoothly (never does i know)
Would this method be worth while to build up cash fastest way without leveraging and using OPM's for now with SFR's and flips
Go easy on me i been reading alot of books and listening to podcasts daily and get the lingo of the real estate investing world and alot of different ideas from what other people have done in the past to be successful
Like episode 121 from bp real estate podcasts those guys are my age and killing in their 20’s yes all hands on but they going strong for sure
(Sorry long read)
