All Forum Posts by: Matthew Allen

ARV - $165,000
Estimated Rehab - $26,500
Purchase - $90,500
Expected Profit (as Flip) - $19,267.71
Expected Rent - $1,500/month

I picked up this 4/2.5 house in Selma (just outside San Antonio, TX), and figured I'd start a Deal Diary to track the progress and ask questions. It was built in 2003 and looks to be a pretty straightforward rehab. Depending on if I choose to rent or flip the house, the rehab could go up or down, but it is in an established & quiet neighborhood with great access to shopping, Costco, restaurants, the Air Force base. I don't expect it will sit long no matter which direction I go with it.

My first question: I tried the BRRR calculator and can't imagine this deal would lose money as 1 attempt said it would. How much would you expect to cash flow on a deal like this?

Thanks Steve!

#1: If I can get him to owner finance it to me thru the rehab and resell, I'll probably offer him $165k max assuming the rehab is truly $20k.

#2: I'm staying in contact with them to see how things move along, but I don't foresee it happening.

#3: That ship seems to have sailed, but I'll follow up later this week and again in a few more weeks to see if their buyer still comes thru.

I took a look at it. It's too high, the condition is ok, but cat lady-ish with some TLC and a deep cleaning needed. Not worth trying to figure out how to do this type of deal. At $15k and in good shape and clean I'd try to make something work. Thanks for the input.

I just got a lead on a mobile home in a park in San Antonio. With arrears and everything they owe$24,557. It's a 2004 and I'm about to check it out for condition. She pays $469/month in mortgage + $380 lot rent (includes water and trash), but got behind with a medical emergency. She would like to sell it and lease or buy back. Haven't looked at unattached mobile homes, so I don't have a fat clue what a deal is or is not. I appreciate any help.

Thanks @JD Martin. Agree on your percentage comment as well...just haven't had the opportunity to tackle any bigger ones yet. Perhaps soon.

Thanks @Brian Flack, @JD Martin & @Rick Pozos. I don't have many deals (1) to compare against, so I appreciate the confirmation that I'm not being so conservative I'm missing on real deals thinking they barely make the cut if at all.

On the above leads, what purchase prices would make actual sense to consider them real deals and not near deals or at least to get your attention?

My wife and I completed our first flip in San Antonio at the end of last year. We got a great education and got paid for it. To start the year we're giving Google Adwords a go to develop a system for developing leads (I have a good & flexible job, so this is a good fit for me). In 3 weeks I've received 8 leads. Most all of them feel like near-deals to me...to make them work by my figures I'd be cutting them razor thin, but I've got nothing to compare against. I'd appreciate some thoughts on a few of the scenarios. What would you do? What would you offer for flip, or for a rental?

1) ARV: $230k Rehab: $20k Seller is asking $180k

2) ARV: $175k Rehab: $5k (plus unknown cost to repair slab foundation on 16 year old house) Seller owes $116k plus 3 months missed payments/fees. Currently vacant, but rents for $1250/month.

3) ARV: $105k Rehab: $35-40k (old, bug infestation, wood rot from a longtime bath leak) Inherited House. Offered $30k and seller said they'd been offered $50k

I appreciate any input!

@Jeffrey H., thanks for sharing your experience. I'm meeting a seller tomorrow about selling an inherited house that is currently being probated, so this was helpful.

I'm working on a flip and had planned on sanding the cabinets, repainting them, and adding granite. After pulling the countertops, there is more roach/big debris and droppings than I thought. I'm worried the smell will not come out. Any suggestions that actually work for getting the smell out?