All Forum Posts by: Michael Key

My wife and I have spent the last year living our dream of traveling the country full time. And now we are ready to chase our next dream which is owning a real estate business. 

We are traveling to Boise, Idaho after the July 4th holiday to learn more about the region. After a long process of investigating other areas around the country, Boise and the surrounding Meridan and Napma look like a lifestyle fit for us. 

We've set the goal of spending the month of July getting to know the area, and would like make the move our closing on our first rental property no longer than by the end of Sept. Feels like a really workable time frame.

In that regard as nonresidents and newbies, we're looking to connect with realtors, wholesalers and sellers in the area.

People will always take advantage of what they think they can get away with. It's human nature.

Why are you not sure of the listing price?

My wife and I are also looking at flipping houses between Columbus and Cleveland. Pretty wide spread I know. But we're hoping to get boots on the ground in the next month or so. 

In my own research, I've been trying to narrow down growth areas where people in their late 20's to late 30's who are having kids are buying homes. And looking for distressed properties in those areas.

@Karen Margrave made some good points about understanding your area. If you know what kind of ROI you're looking to make, you can then evaluate areas with the potential to meet your ROI based on the amount of investment/time you are willing to make.

For me, I'd like to see a 20% min return on any investment flip.

About 15yrs of experience in family remodeling business. Just a few thoughts about rehab timeframe.

Depending on the house, I think two months if your workers are putting in full days, and depending on the work is a reasonable estimate. But I would adjust your plan to include at least 30 days of overrun for rehab. Just as a safety. It's not a matter of yelling at contractors, so much as contractors who aren't meeting their obligations and you end up having no choice but to replace them. That causes setbacks, and it's realistic to plan for it. Six months for rehabs might be a bit much, if you research your deal properly, which it sounds like you intend on doing.

You should stick with your goals, aim to get the work done in 2 months. If the rehab over-runs your allotted, you'll be prepared for it.

You're usually always dealing with the who's who of mental health. I say that jokingly, but hire some painters and you'll get the joke.

Subbing it all out will cost you more upfront, figure out what's cost effective for you and cut out any fat. It might not be worth paying two guys to paint when you and a buddy could knock it out in an evening or two.

But the level of what's worth it to you, is basically up to you. We're all different in those regards.

I would just take steps 6 and 7 and add another layer of scenerios. One where everything is on time. And one where everything is adjusted for a 30 day delay.

Otherwise your plan looks solid. And as someone else said, do calculate rent costs upfront if they are a backup exit strategy.

So what if you flip just one house? Get it done in 4 months? Would I have to do additional houses?

@Stanley Whigham that was really useful info, thank you for sharing with the community.

If you are acting as your own registered agent; you will have to use an address that can receive certified mail.

People have weird tastes (and sometimes no taste :p), that's why A/B testing works, and you clearly found something your renters like. Proof that our own likes/tastes aren't always what the market will want. That's why we test things. Smart work man!

Like others have stated, Dave Ramsey gives great advice if your life goal is to stay poor forever. Otherwise, it's all terrible advice once you apply some math and critical thinking.