All Forum Posts by: Nathan A.

If you sub out all the work yourself, you're essentially acting as your own general contractor -- meaning that's more work for you to manage and coordinate. What's the value of your time? Do you have the time to do that well?

If you're sure you do, and you've worked with subcontractors before and know generally what to expect, what you would be gaining is more control yourself, which could be helpful in keeping things on budget and on time. It could also be a good opportunity to expand your knowledge of rehabbing. My wife and I did this on a renovation on our primary residence a while back and learned a lot.

I think it's a good idea to begin with your list of markets you know in some way. I would then narrow it down with market analysis.

@Colby Leboeuf I'd recommend looking at J Scott's "Introduction to Real Estate Investment Analysis" and Brandon Turner's "How to Accurately Estimate Expenses on a Rental Property in 3 Easy Steps."

@Kevin James I would consult with an attorney about the redemption period. Make sure you're also budgeting for repairs that a property purchased in foreclosure could need.

@Ty U. what would you be bringing to the table? The deal? Financing? What is the value you would provide to someone else in the arrangement?

It means the maximum qualifying loan that you can deduct interest from. There is more information here.

Patrick, what do you wish potential clients would do differently when they are trying to find a contractor?

Quote from @Robyn Gersh:

if I bought a lien on a property would I own that property?

No. Here are some introductions to tax liens. My understanding is: When you buy a tax lien, you pay the delinquent taxes on a property you don't own in return for the right to collect interest on that amount from the property owner. Most of the time, the property owner eventually repays the delinquent taxes with interest and keeps the property, but if you haven't been repaid after a certain period you can eventually foreclose and acquire the property. In the area I'm familiar with, tax liens are only sold by the government once a year at auction.

Patnaree, I am not a CPA but this page from the IRS might be a good overview.

> If you receive rental income from the rental of a dwelling unit, there
are certain rental expenses you may deduct on your tax return. These
expenses may include mortgage interest, property tax, operating
expenses, depreciation, and repairs.

Are there 2bd 1ba comps in the area? What about comping it to those and multiplying by two?