All Forum Posts by: Kevin Blair

Buddy!  That looks great.  Flipping isn't an easy business while also having a full-time job.

A wise man once said, "the deal of the decade comes along about once per week."  Keep on keepin on with your research and I'm sure you'll find something even better.

Hi All,

Finally have the capital raised to do a flip where total costs do not exceed $160k. I found an SFR in a nearby suburb of Chicago I like and am attempting to get the highest quality comps possible. I did have an agent send me theirs, but I have issues with two of the comps being used and I'd prefer to do my own comps as well just to make sure I'm not being "sold" on a property that isn't actually that great of a deal.

The house I'm looking at is a 3/2 SFR, but I can only find one comp I actually like that is also a 3/2 SFR. The next best two I can find are a 4/2 and a 4/3, unless I'm willing to look at properties sold 12-18 months ago. All these comps are within 200 sq. ft of eachother and I'll be using the square footage method to get my ARV

My question is... is there a reasonably reliable way to adjust the sold price of these homes based on them having an extra bedroom and bathroom? For example, should I knock $10k off the sold price for the 4/2 comp I'm looking at to get a better expected ARV? I know appraisers have a system similar to what I'm talking about, but I don't know exactly how they add/subtract value from comps to get their appraised values.

Thank you all in advance!  I look forward to being able to be more of a "contributor" on BP in the next few months than a "taker."

@NaDean Bowles That's exactly what I was thinking, but I couldn't get any solid data on DTI for an area either. My uncle is in the Cayman Islands for the next week but I'll just reach out to him when he's back. I still have another 2-3 weeks before my LLC is approved anyways, so there isn't a huge rush.

He's been wholesaling for about a decade now and stays within 15-20 miles of Fayetteville, his hometown. His main rule is that he never gets a home under contract that at least 70% of the town's population can't afford to buy according to the current market value or expected ARV. How he goes about determining exactly how expensive of a house he can get under contract and still have 70% of the population afford it is another question that i'll address with him when he's back.

Hi All,

I've spent the past 3 months working for my Uncle's wholesaling business in Arkansas and am now in the beginning phases of launching my own in Chicago.  

I heard of something called the "debt use index" from one of his business partners.  Basically, it's an index that gives the average amount of monthly recurring debt obligations that individuals in a certain area have as a percentage of the area's average income.

I'm struggling like crazy to find it.  I see having that info as a big help in determining which towns/neighborhoods and what types of houses I should be attacking in that area.

Has anyone heard of something like this?  He's quite the redneck who likes to develop his own language for things, so I'm thinking "debt use index" might not be the technical term.

Thanks in advance!