All Forum Posts by: Randy F.

ARV = After Repair Value
What would the property sell for if you put it on the market after repairs are completed? Even if you intend on holding it, its best to have an exit strategy so that you have the flexibility of being able to sell if you need or want to earlier than planned.
Knowing the ARV is also needed in order to know how much is too much with regard to rehab. At 1800 sq ft, 2/1.5 each, Id be looking at how the layout lends itself to creating an additional bedroom to increase both the value and the rent. To know the ARV you need to look at comps in area. To know what an additional bed would bring, you need comps of both 2/1.5s and 3/1.5s.

Would be nice to know ARV as well. Even tho it sounds like you will hold, its important to have a way out if life, or the market, throws a curveball.

Im a bit confused as you mentioned it needing piers and it has a walk-out basement, which
in my mind would be on-slab. Am I missing something? Piers are generally not a big deal. If it is on slab with foundation walls below grade and theres a problem, that can be more costly.

Hey Andrew!

Brandon makes some great points about hitting a financing wall at four to five props. With that in mind, and considering youre a remodeler, I would suggest making it a top priority from the onset to seek out and develop relationships with one or more investors in the areas you have interest in. Being that you are open to numerous locations, before getting tied to one would be an ideal time to find someone you click with and can partner with in the areas in which they are already having some success.

With your remodeling experience as well as having some cash available, you can approach fellow investors with confidence in what you bring to the table. Many are deals and numbers guys who rely on paying GCs for the rehab end and that doesnt come without its challenges and costs. Partner with those whose strengths offset your own areas of weakness and vice versa.

You sound like a sharp guy so Im sure that once you think thru the possibilities and upside of partnering on some flips and holding the cream of the crop, lights will go off. If done right, by the time you hit the wall you could be doing a mix of rolling over your own cash and private money to keep on trucking!

Im excited for you! And how awesome that your wife supports you... thats half the battle!!

LOL!!

Hmmm... The link didnt work... I must need an Iphone ap! :c)

Do you know any bikers? Have a half a dozen Harleys roll up on the neighbors lawn and rev em up for five minutes. They then knock on the door and tell neighbor that they heard your place might be going up for rent and just wanna know if this is a nice QUIET neighborhood! :c)

You might start by getting to know investors here on BP that are from your area. You can search your location and then hit the "people" tab and follow them and those you seem to relate with, send a colleague request an invite to lunch. Local REI meetings and thru realtors is good as well.

Based on not having a source of income and $70K to invest, its my opinion that the safest and smartest strategy would be to partner with an experienced rehabber. Find a property together, you put some money into the deal and work on rehab. Ride his coat tails from beginning to end. Get a decent return on your money invested and on the job training. I would only invest a third of your cash in first deal. There are plenty of investors who would be happy to use your money and help you learn the biz. And in doing so, you are using his money as well.

The question isnt whether 24" footings are needed(yes), the question is... Does a few two or three more bags of concrete and 6" deeper holes justify 25% increase??

Id say NO! Is this a handyman off craigslist, or what? He didnt know from experience what was called for. He bid job. He then thought he better check with a friend to see what they thought. He had figured he could easily dig some shallow holes. Now he thinks that might be too hard and maybe oughta have an auger. And now that he thinks about it... Shoulda charged more money. Thats what it sounds like to me.

If you vetted him properly, he's licensed and insured, and knows what he's doing, i would tell him that he should have known this before bid, but you want it done right. Hold him to original contract but amend it to state that if he wants more money, he must present receipts and actual labor costs when job is complete and you will pay for additional concrete and labor for 12" x 48". If he needs a post hole digger/auger thats a tool if the trade and its on him.

For relatively inexpensive refers, again Frigidaire and Hotpoint. Hotpoint are GE and pretty decent refer in the low end. Frigidaire... Ive seen many compressors fail at four to five years.