All Forum Posts by: Maggie W.

I'm in Puerto Rico now and would be happy to report on what I see, if anyone's interested. I see a lot of AirBnB places booked for months in the Old San Juan area.

Hi Jeremy, I'm a Californian in contract for a duplex in Macon GA, a town I studied for so long I missed the boat. I visited recently, offered on 4 properties, passed on 2, and hopefully can close on one. I am looking mostly in the historic areas near downtown, so I am casting my net narrowly, but my sense is that the super-bargains for residential are gone. The properties available are in truly heinous condition and sellers are unrealistic about their value. Rents are not increasing fast enough to justify purchase prices. Vacant land in promising neighborhoods is being hoarded by the Land Bank Authority (which you cannot sell it for a profit). The mixed use buildings downtown look better; loft rents are good and local organizations are helpful to developers. My strategy on this duplex is BRRRR, and while it's on the operating table I'm looking for the next Macon. Let us know if you have other ideas, like same-size towns in Nevada....

Great, Thanks for thinking of me. Send me a PM

@Manolo D.

No, it's just that my experience is in older homes, from 1888 to 1940. They always seem to need more/everything. For instance, repairing plaster rather than gut and drywall. One client's place needed a $30K new foundation. I have seen flip rehab budgets from $60k to $120k, but that was some time ago and I'm not sure if the flippers I knew were doing everything above board. I want to sleep at night and to me that means workman's comp...

In a recent deal I analyzed I couldn't get the budget to go above $60k even with $4k in foundation stabilization added, so maybe I'm being overcautious. My estimates include modest landscaping refreshes and often $10,000 in plumbing/electric, properly refinishing older tubs and sinks, not replacing with fiberglass, proper renovation of wood siding, not covering in vinyl, etc. 

This is the type of rehab I am confident I can sell all day long in my market.

HML with my own cash to rehab is what I had in mind but I'm exploring all options.

Let's get in touch. 

Thank you!

1. My experience as a landlord here in L.A. is that your maintenance and repairs will be an average of $100 per unit per month (on an old property like my duplex). Some months or even years, nothing: then $1,000 or even $9000 all at once. It will vary depending on whether they're at market rent or enjoying a low rent rate (they ask for more piddly repairs when paying high rent. My tenants who I could charge more, they try to fly under the radar and don't ask for much).  Anyway, never assume you'll have no repairs, it's the road to ruin.

2. Check your tax estimate. I pay $500 a month in taxes on a property I got for a lot less than $656,000. Isn't the tax here 1.25% with a 1.25% raise per year? even at 1%, your tax based on the purchase price would be more than $500. 

3. 8.23% ROI before vac, cap ex and maint. is a risky margin. But your other benefits might make it worthwhile, in your particular case, as you mention. Ask your tax lady. And ask her this too, remember all the depreciation benefits you take over the years, you have to 'pay back' when you sell the property. I learned this to my chagrin this year.

Good luck!

I'm analyzing deals by the truckload as recommended by Branden in the webinars, in an area of L.A. that's just sodden with flips.

Well actually my goal is two analyses a day, not really a truckload, but I do feel I'm arming myself properly. One of the things I'm using the MLS for is to work out my 'guess' as to how much a distressed property will sell for and check against the sale price, then months later seeing if I was right or by what percentage I was off. I can also use this to later see if my ARV guess for that property was on the mark, too.

I'm working in commercial real estate but I'm personally looking to invest in flips (with my own proceeds and other people's money) locally here in Los Angeles, and for now, stay with what I know: homes or duplexes that buy for around $350k and sell around $550-600k. Especially keen to have a contractor partner, for obvious reasons.

Have seen ideas/presentations from hard money lenders and I wouldn't mind to hear more.

Please get in touch if you're interested.