All Forum Posts by: Michael James Brooks

Honestly I like most of the tile, basement excluded (that is ugly). For me the tile is only ugly because of the paint color and wall paper they've put in the property. The wood floor needs to be replaced. The kitchen cabinets need to painted and I would need to replace the tile counter top with granite. Also the back deck needs to be treated, drainage lines fixed, and some minor landscaping (which I will do myself.

The more I've dug into the number I agree the rehab is understated. But the current purchase price is going to be $159,900 which leaves a large margin of equity in the property.  The city has it appraised at $237,950, and various real estate website have the estimated value higher than that.

The original goal was to BRRR it and sell it in 3-5 years. However I have a few options with the property.

The subdividing into multiple thoughts idea just popped into my head and I knew this would be the place for valuable feedback. I have thought about approaching the people behind the property to see if they're willing to sell the front half of their land,  but I need to focus on the one property right now.

The end goal is to profit $20-$30k on this property. With $30,000 in rehab costs, plus closing costs, real estate agent fees, etc. The house would need to sale for around $200-$205 to break even and I believe with proper rehab this property is worth well more than that. @Eric Pinter With $30,000 in rehab, what do you believe this house could be worth considering you know this particular house/area.

@Chris Carollo

The picture list the property and as you can see there is a road splitting it in half. I do know that my city's population is increasing pretty quickly. This area specifically could be rezoned to commercial in the next 5-10 years. There is a subdivision behind the property and across the street from the property. It's just a 2 acre plot that separates them.

I plan on going the BRRR strategy route because this house is nice, located in a great school district, and in a booming suburb outside of Little Rock, and I believe it could bring $1600 a month in rent. It's 3,600 sq ft (including basement) with a 2 car garage, 1,000 sq ft elevated deck, has all real tile, stone, and is bricked on all 4 sides. The median house price within a one mile radius is $220,000, 79% marriage rate, and 40% of the population within a mile is college educated! I can't begin to describe how excited I am.

This is my first investment property and although it's a little more expense than I originally thought my first rental property would be, it's got the chance to be a great deal! I'll post pictures in the future to show the rehab process and update this as the story unfolds.

The contract goes final tomorrow at noon and this was just an after thought. I could always run sewer, water, and electrical down the street. But here is the layout of the property. Remember it's just an option. I wanted to get some feedback. Thank you for all of your feedback!

So here is the deal I'm currently pursuing. The number match and everything is perfect, thus far. Offer has been submitted and I'll know tonight if it was accepted. this is a Bank Foreclosure. Some stats on the property:

ARV: $240,000
Asking: $159,900
Repairs: $15,500
Profit Desired: $20,000
Expected time to flip: 1 Year, as I plan to live in it for a little bit before I put it back on market. (This will also be my first real estate investment. So I can cut down on some repair cost since I will be doing them myself.

The following link will give you more detail:
https://www.biggerpockets.com/calculators/shared/4...

This property is located about .25 miles from the best elementary in it's county, which is part of one of the best school systems in Arkansas. It is also .35 miles from the most upscale neighborhood in the county. In this subdivision 1/4 acre plots sale for $47,500.

So here is my question. Would you buy and flip the entire property as one giant unit and make $20-$30k over the course of a year?

I've recently began wondering if it's feasible to get the property rezoned and have it subdivided into 7 lots because there is a road that cuts directly through the middle of the property. 1 Acre on the right can be subdivided into 4 plots and the side the house on is .88 acres and could be divided into 3 plots. The thinking is that it might be possible to split the property into 7 lots and sale the 6 vacant lots anywhere from 10-20k. Then once all the lots sale I can put the house on the market after it's been reappraised. If I break even on the house it's then possible to make a profit of 70-140k on the sale of the empty lots.

What would you do??

Also to give you a better understanding of my goals:

I want to own 50 properties that cash flow a minimum of $200 a door by 30 (I just turned 24). However I'm having to retool my strategy with a "How can I" mentality. I am trying to build up investment capital of 250k. This flip could net me between $20 and $140k which would be a nice start.

My background:

I'm an auditor for a public accounting firm and have worked for a contracting company assisting in project management for rehab of buildings exceeding $6 million. I have a contractor whom I've known for about 10 years who flips houses for a living willing to help me in future flips.

I could use my parents as co-signers but they don't believe in my dream so I don't want to make my dream become a burden to them. As soon as I buy my first deal I'm going to put the property in either an LLC or an S Corp to remove the property from my name anyways.

Also I'd like to thank everyone else for the warm welcome to the Bigger Pockets community!

Hello members of Bigger Pockets!

I've been listening to the podcasts, love the content, and I want to get into real estate investing. I'm looking to connect with people in the Little Rock, Arkansas area. I'm mainly interesting in buy and hold investing strategies and am looking to retire by 40. I'm beginning to understand everything that is involved in Real Estate Investing and am excited to begin this journey to financial freedom.

As some background I am a 23 year old auditor and travel a ton! I'm financially sound and have money to begin investing but I've had 3 offers go sour because I can't get bank financing. My work history isn't the best because I went to Uni in England and then moved to Australia for a year. I have good credit but I don't have enough "work history" to qualify anywhere. 

With that being said my goal is to finalize my first deal by mid summer. My long term goal is to own 50-100 units by the time I'm 40 years old so I can retire and do what I love most, travel.

If you know anyone in my area, or are in my area yourself, please connect with me! I'd love to get to know other investors and hear their stories. I've already heard at least 50 stories from the podcasts, but that's different!

Thanks for reading!!

Michael