All Forum Posts by: Jason M.

@Kuba F. thanks for the response.  The light fixtures will be replaced, that's the last thing I do!  Haha

@Dan B. thanks for your response as it's exactly what I was asking...does spending the money make sense at this price point in this area.   I wanted some reassurance, which is why I posted the question.   Now the problem is most think I should paint but you answered my question perfectly.  Does white look better and more modern, yes of course.  Does spending the money on this peticular property make sense?   I have been watching the market and most all the comps in the area, specifically this development, have golden oak.   I'm not convinced spending the money to paint it will result in a higher price or quicker sale...but it might.   What are your thoughts on painting just the base and casing in the lower level and leaving the upstairs trim and kitchen cabinets oak?  

Thanks everyone for the responses.  I will paint the trim

and doors white.   Any thoughts on the stair case hand rail color?

it's 1250 sqft.  The $2k was for painting trim doors and cabinets 

I'm working on a small town home flip in Cottage Grove, MN. Purchase price $110k, rehab budget $12k, ARV $145-$149. I have been debating what to do with the golden oak trim and cabinets. I was planning to paint everything white but then I had unexpected plumbing and sheet rock repairs that cost $2k. I'm now in a situation where I'm trying to cut costs if possible to maximize profit. The oak trim is not in terrible shape and I can probably fix, replace and repair what's there for about $300 versus $2000 to paint. I installed a laminate floor that I have used in several small flips and it looks great with white trim and gray walls. I'm not thrilled with the way it looks with the oak as the oak looks orange. My question is...in this price point does it really matter or if I spend the money to paint it? would it be worth it? If this was a rental (my plan b) I'd probably just leave it. I've done several similar rehabs that I rented just fine. Looking for someone who rehabs in Minnesota or the twin cities to chime in. My gut was saying to leave it alone but after installing the floor I'm not sure.

Eli Sunderland I can't speak for others but all of my Brrrrr properties in the past few years have been REO's. I buy off MLS, Hudhomestore.com, homesearch.com, and Auction.com. I agree with Marc Jolicoeur that getting all your cash back is ideal, however, with deals harder to come by I will not lose a good cash flowing property because I refuse to buy over 80% arv. I just finished one that was purchased about 85% arv that cash flows just fine. Luckily it was a cosmetic rehab and it was rented quickly. I will have to leave some cash tied up in it for awhile but I'm ok with that if my cash flow is rising

I agree with Kevin Powell. I rarely buy a property turn key regardless of the price. I typically buy some level of distressed property at a discount and fix it up before renting. Not only does this help by creating more cash flowing opportunities but this "forced appreciation" or value add will provide a cushion and also the opportunity to borrow (Heloc) or refinance to pull cash out. I'd advise making sure it still cash flows when borrowing equity. For the past few years I've been using commercial Helocs on properties that are either paid off or have significant equity. This allows me to essentially pay cash to buy new properties. I fix them up, pull a line on the new property and pay off the old line and repeat. If anyone is interested I use a small community bank in Albertville. They will do a Heloc 70-75% ltv at 4.5% int only...renewable every two years.

Eli Sunderland while I pay attention to market cycles for flips, etc I don't really think about it for my long term holds holds as long as it cash flows from day one. I'll give you an example of why: I bought my first rental in 2003 in Champlin, MN. A SFH in a nice neighborhood with good schools among mostly owner occupied homes. I paid $186k (5% down) for it and after adding a bedroom (going from 2/2 to 3/2) I rented it for $1495. This was about a $400 monthly cash flow. For the past 13 1/2 years I have seen the value go up to $230k (2005)back down to $140k (2009)and now back up to $240k (2016) All this time my tenants have been paying down the mortgage and I have been enjoying a steady cash flow of about $400/mo all these years (do the math). I don't plan on selling for a long time if ever. If I had know the value would drop to $140k several years after I bought I never in a million years would have bought this deal. I have had many investments turn out this way only because I didn't panic during a downturn. I know this is oversimplified but I am not "analyze the numbers to death" kind of guy. My advice is focus on cash flow today and if you have a long term horizon you should be fine. I've bought my share of bad deals but looking back on them, there was little to no cash flow so I never should have bought them.

@Joe Schaak find out what the bank bid at the sheriff sale...this is the amount needed to buy the house from the bank.  Next determine if the seller has equity and negotiate from there.  If there's no equity offer them an amount your comfortable with to transfer the deed to you thereby giving you redemption rights.