All Forum Posts by: Nancy Zhao

What would you guys say is the rent premium for a newly constructed SFR compared to a similar home that has been recently remodeled but is otherwise say 40 years old?

My local market has so few rentals that are new builds that I can't for the life of me find decent comps to go by.

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Anybody have experience with owning(not operating) a home that's leased to an assisted living facility operator?

What is insurance and potential downsides like for those? From what I'm looking at the rent seems to be somewhat above market while the home is being sold for slightly below market, but not significantly so.

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I've rehabbed quite a few homes that were garbage dumps but this one takes the cake. This property has probably dozens of rats inside with piles of rat poop everywhere. The smell is so overwhelming that even with a mask it's unbearable.

Has anybody dealt with something like this? What's the process to remove the stench? I'm open to anything including removing all the floors. Any advice would be much appreciated!

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I've been offered 7.5/1-1.5 here in CA. With 30 year at near 5% I don't think this can go much lower.

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Originally posted by @Ian Saingarm:

Yes you're that's what we did, income minus cost of goods sold was our net. It has been a while, and I always let an accountant sort it out. I was wondering about strategies for RE as our accountant is not super familiar with RE tax strategies. Thank you!

There is no RE when you're flipping. No depreciation allowed, homes are treated as inventory. You're basically no different from any other business that buys inventory and sells it for a profit.

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Originally posted by @Jacob Chapman:

@Mike McCarthy hey Mike, thanks for the quick response! You see that is kind of my problem haha! MY comfort level is really high! For example if drywall is down, I see that as an opportunity to update all of the cabling (internet, power, and cable) if needed or at least you know what it is when you check it out. My wife's comfort level is.... A freshly remodeled home haha. That said she knows and is willing to compromise, but since we are inexperienced it would be best to get some outside opinions. Though I am a big DIYer for the first rehab all of the mayor things we will likely vend out to keep stress and lack of experience from stopping us from ever getting started.

Yeah I'd much rather deal with a home that has the walls down to the studs to be honest. Drywalling isn't that much of an expense and it's a selling point.

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For flippers homes are treated as inventory, basically think used car dealership.

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There is no way you'll find deals like that today unless the owner is mentally impaired.

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It sure sounds like this company will be making more money than you will on a deal.

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Originally posted by @Beau Pearson:

I will try to make this brief. So there will be a lot of details left out. A very experienced BRRRR strategist in the Kansas City area suggested him and I form a partnership. I am from Florida and like the market. The short version is he would handle managing the rehab and contractors etc, I would make an initial loan to the company and acquire both the short term money and long term refinancing money, as I can still get the conventional since I’m under my 10 limit. All equity and cash flow is 50/50. And whatever I make as a loan to company would be paid out first. The price range is like 60-70 all in numbers with ARV 85-95k. Cash flow maybe 125-200 per. My question is, is this worth it? Seems I’ll be taking on 6-700k in debt for not that much cash flow. There will be a lot of equity build up though. Thoughts?!???

If he's that experienced why is he paying more to take you on as a partner rather than taking out a loan?

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All Forum Posts by: Nancy Zhao

Nancy Zhao has started 11 posts and replied 68 times.

Post: Rent premium for new construction vs rehab

Post: Buying an Assisted Living Facility

Post: Help with smell of animal urine/feces

Post: Have Hard Money Rates Bottomed Out?

Post: Tax strategies for house flippers

Post: First rehab, how much is too much?

Post: Tax strategies for house flippers

Post: Finding a Rehab in a B class neighborhood nearly impossible?

Post: DoHardMoney.com / other hard money lenders.

Post: Are partnerships worth it on SFH?