All Forum Posts by: Mike Wilkinson

@Tiffany Wing you got it! Feel free to shoot me a message asking any other specific questions.

If you are already comfortable with renovating, keep the end in mind when looking for a place and give yourself a shot at a successful live-in flip. I have utilized this strategy multiple times, and often there is a sweet spot in the market of properties that don't quite work for flippers, and are too ugly for typical home buyers. If you have lived in the home for at least 2 of the last 5 years, you will be able to sell free of capital gains taxes. This could save you over 10k in taxes compared to a normal flip!

@Darius White PMI vs 20% down should not have to be your only options here. I have clients pay 10% down and pay off PMI up front when it makes the most sense for them. This makes sense when you see yourself owning the property for awhile, the PMI payoff equates to about 3 years of PMI payments typically. Another option that I've seen is putting 12-14% down to avoid PMI altogether. Chat with some different lenders to see what in-between options you may have.

Hope this helps!

@A Perez Not sure about your market but in my market and many others inventory has remained just as tight as it was before this mess. I like what J Scott says about flipping at a potential peak in the cycle.. keep it to more entry-level price ranges and keep em quick. Also if you are going to flip in a more uncertain time like this, be sure there is some extra cushion in that deal. If you can meet those 3 criteria and have the time and market for it, I say go for it! 

Hope this helps!

@Tiffany Wing Investing out-of-state, you will want to make sure that you have trusted connections and a good feel for construction costs / process in the area before purchasing a below market value project. I have heard far too many stories of investors who thought numbers looked great in an out-of-state deal and had no idea what they were getting themselves into. Contractor relations can be hard enough to maintain and control locally. That being said, there is a reason why people say that you make or lose your money at the start, on the purchase. There is maybe no better way to safeguard your investment than building equity on the front end by buying a great deal and taking care of the project that nobody else wanted to address.. Once again, just network hard to make sure that you have those connections when you need them!

Hope this helps!

@Jas Raw I just switched PMs out there and have been very happy with my new one. I am an out of state investor. Shoot me a message for info if you'd like. 

@Kevin Grimm No problem, stay safe out there!

@Tanner Stenquist Pros of being in an HOA include not worrying about exterior maintenance or sewer line. Often there are some other little benefits like this, parking, outdoor lights, fencing, landscaping (or lack thereof)

Cons include loss of control. Unless you are on the board, you won't have much control over unreasonable special assessments, HOA due increases, new laws about no rentals, and restrictions on what you can and can't do to your property, how many people can live there, etc.

Another con to a Townhome situation is that you may not see the same appreciation that you would in a single family home should the area change for the better. 

Hey @Kevin Grimm, I saw that no one has replied here.. networking has been tough lately! I imagine your wife would do well networking with any flippers in the area on the site here. I often pay my stager $2,000 - $4,000 here in Denver because she is so important in this hot market.. often causing my flips or client's properties to sell 10-20k over ask. I would suggest that she use some actual projects to go way over the top with her staging, and put up a little sign on the kitchen counter where agents leave their business cards. This is how my stager reels in a ton of business. 

Cheers!