All Forum Posts by: Keegan Darby

Hi BP -

I’ve done 20+ flips, but given the limited supply am very interested in buying land and building new homes (1,100-1,250 sq ft). 

I've talked with a licensed / reputable builder who will build for $130/sq ft (very basic home). 

I want to be sure I’ve ran through all the numbers before purchasing the land. A few questions: 

1. With builders, do you typically lock in a price quote before buying land? (To ensure they don’t bump up the price during construction) 

2. When buying land do you typically get an inspection period to inspect the plot of land?

3. What is your order of operations (I.e. buying the land, drawing plans, signing contract w/ builder for scope of work, applying for permits, etc.)? 

Thank you in advance for any insights. 

 I agree. 

Hired a contractor and paid him $11k to do framing, electrical rewiring, new plumbing throughout. 

Long story short that contractor was incredibly slow and unresponsive (took him 5 months to complete the above). 

We have since brought on a new contractor and they are commencing work on the home and come to find out all of the plumbing needs to be redone and the electrical as well as none of it was done properly. 

What steps would you take with the first contractor? He is unlicensed and was recommended from a friend. 

Yes, I know we should’ve vetted better and not hired someone unlicensed. 

@Pasha Maleknia - 

Absolutely brilliant episode! Thank you for sharing what’s working for you. As someone that manages 30+ rental units, it would be immensely valuable to understand: 

1. Who you use for your remote camera and doorpad/lock set up? 

2. How much do you pay your VAs? Is it by the call or per day? 

3. Do you have a template you can share to your tenant surveys that you send out? 

Thank you again! 

 Thank you, Dave. 

The challenge is if I do the cash out, then put that money into an account that earns say 6%, I would've been better off not doing the refi as the rate will be 7.25%+ 

Worth $215k. So, would get a loan at about $140k (65% LTV).

Hi All, 

Wanted to get your thoughts on if we should hold a house cash or do a cash out refinance? 

The details: 

"All in" after rehab at $145,000 

Tenant in place at $1,550/month 

We can do a cash out refinance into a 30-year fixed loan (no prepayment penalty) at 7.75% interest with the loan amount at $155,000. Or, just keep holding it cash.

(I know the simple answer is "it depends on what you would do with the cash if you refinance it", but wanted to see if there's anything I might be missing - i.e. worth refinancing given the tax write off of paying interest on the loan)

Got a call from a tenant this morning that there was a drive by shooting at one of our rental properties.

About 40 bullet holes sprayed all across the house, tons of damage to the interior area well (cabinets, doors, shattered windows, etc.). 

Thankfully everyone in the home is OK. A police report has been filed and investigation is under way. 

As the landlord and property owner what would be your next steps? Who is responsible for the damages (likely $8k+ in damages)? 

Thank you for any and all help.