All Forum Posts by: Scott Robinson

@Christopher Phillips, @Will G. @Chris Brown thank you for your thoughts as well.  Here are two more pictures of our house.  Sounds like most of you think it is worth the investment.

The house is 3500 sqft, in a very hot city.  It is not grand, its old and blah, which makes it tough to comp because all the older homes have not sold, mostly new builds but they are all on smaller lots.  You would pay about $450 for this home built new on an acre right now.

@Christopher Phillips

Here are pictures of two of the comps:

Thank you, @Brian Pulaski, @Frank Adams and @Curtis Bidwell.   If we replace them it would be just for aesthetics, the windows seem to be functional and water tight.    We were told about $250-$300 per window and the total rehab will be around $60-$80k.

I need some advice on windows. This is my first flip, partnership between my friend/neighbor and my wife (realtor) and I. We disagree on whether to replace (and how) the windows or not. Comps for this house are all "new builds" 2014 - 2018, our house was built in 1965, there are no older home sales anywhere around us. Some of the group feels we should replace all the windows with new, standard size windows and some feel the windows are fine and should be left alone. Our house and land would be about $425-$450 built new, we are confident in our ARV of $375 given the age difference of our home...do we replace all the windows (the two on the 1st floor set in the brick, 6 of those total, and the one big one on 2nd floor)? Any and all thoughts are VERY appreciate.

Thanks!

@Christopher Phillips

Thanks for responding.  The $5k in repairs will come off the purchase the prices as well.

This would be my first owner finance deal, I am not positive I understand what you mean by holding title.  Would that be keeping title in my name instead of transferring to the end buyer?  I hadn't thought about it to be honest, I was under the impression that I had to transfer it because if I held it would be more of a lease option.  I have no interest in maintaining the property at all its 1949 frame home that is in good shape but I want to avoid as much liability for it as possible.

I know, the quick answer is probably "NO" but, what if the numbers still work? Here is a SFR I am looking at:

PP: $112k

ARV: $125k

Repairs: $5k

Conventional loan purchase with 20% down, wrap into owner finance at $130k, 20% down at 9.5% for 30 yrs.  Plan is to ask for a 1 month, $1000 option to find an end buyer.  Cash flow over $400/month...

I have an opportunity to buy a property for about $120k, ARV $160k. 3/2 in a decent neighborhood around DFW. House has general wear and tear but no major issues that I see and do not plan on putting any money into it right away. Comes with an existing tenant paying $1175 (market would be $1300). I would use a conventional loan to finance it unless there is a better idea that I am missing. My plan would be to owner finance to the tenant if they wanted or rent it to them until I found an owner finance buyer. My end goal is cash flow. I am worried about missing an opportunity but also don't want to bite off more than I can chew. Thoughts? Thanks Scott

We recently refinanced our home and got 30k out with the intent of buying a home (using hard money) to rehab, rent or owner finance (exit strategy would depend on the deal).  Since we don't need 30k for a hard money loan I am thinking about using 2-5k for marketing (bandit signs, mailers, door flyers) and keep the rest handy for a purchase (or two).  I want to be able to move quickly (I missed an opportunity yesterday) but am still tentative.  Am I on the right track?  Any and all thoughts are welcome, thanks!

What % should I be setting aside for Federal Taxes on a flip that takes 4-5 weeks?  This would be our first rehab and we may do one or two more this year.  Does that fall into the "investment" category with a lower tax rate or income/business at a higher rate?  Short term capital gains b/c it is completed in less than a year I believe, but want to be sure.

Thanks

@Krisdeon Slack, I am analyzing HMLs right now and agree completely and am still trying to wade through all the fees/costs to get an accurate comparison.  Are you leaning toward a specific one yet?