All Forum Posts by: Luke Easley

In my city there is a historic 70 unit apartment that’s famous for its design and mid century modern architectural style. It’s a solid concrete building but windows are busted out and trees are grown up all around it and squatters have been in and out. It’s in a prime downtown area that is in the midst of revitalization boom. But many people have complained over the years because it makes the area look bad because of the state of the property. But no one has bought it yet. It has been under contract several times over the years but they never panned out.

Although I'm not sure yet, let's just say the numbers look good, and there would be several tax breaks from the city because it's historic. How do I get started? I'm new to REI. I haven't gotten official estimates, but say the total cost of the project would likely be around 3 mil.

Do I need a commercial real estate agent?

How do I find contractors that work these kind of properties? Most of the contractors I know work mostly on small multi family and SFH.

Who manages the project to make sure the work is good and each unit is designed nicely. These would be higher end units.

Should I get a partner that has experience with this?

Do I hire an architect team to present the development to the city for approval?

Once completed, do I hire a full time employee to manage? Or use a management company?

I understand this is a large undertaking for a newbie. I have talked with several interested private lenders that would lend for smaller units that I have been looking at, but I haven’t asked if they could do larger projects.

Should I use hard money or private funds and BRRRR this project?

So many questions!

Live in Flip Question:

I just bought my primary residence in February. It is a1960s house in good shape and livable but cosmetically very outdated with wood paneling, green tile in the bathrooms and old tile and laminate in the kitchen. I bought this house using FHA (not 203k) with the intention to update everything eventually and sell or rent.

I currently Airbnb 2 of the spare rooms and have a set area in the home for my office.

I have an LLC that I use for my rental properties and have high limit credit cards for that business that I use to buy and rehab the properties using BRRRR.

Is it appropriate to use those business credit cards to flip my primary residence and then refinance to conventional? I'll still be living in it and will probably still live in it for a few years after its flipped. I know attorneys say not to mix business and personal funds, so not sure if this falls in that area. Anyone know?

@Justin Sheley Congrats! What is your primary source of funding and how are you structuring your deals to allow for enough cashflow to live on? I saw you used Fund & Grow in an earlier thread. How did that pan out? Did you use a mix of private and hard money?

@Simmy Ahluwalia Thank you! I will send you a message.

Triplex in Montgomery, Alabama.

2 1bed 1bath units and 1 2bed 1bath unit

Purchase $30,000

Rehab $80-$90,000

ARV $160,000

Each unit will rent for $750+

Looking for financing