All Forum Posts by: Nathan P.

Lots of good comments about how to properly secure your property and manage contractors.

My cost effectective way to detour burglars would be to buy some security signs on ebay for a securtiy company (e.g. Vivnt, SimpliSafe, ADT) and then some "Dummy" cameras. Cameras that look like real cameras but are really just plastic inside and have a wire that you tuck inside the siding to make it look real. I would then place the cameras in some blatantly obvious places that they are there.

In the end theft happens and is a cost of business.

Are you planning on owner occupying the property after you purchase the property? Will owner occupying be a requirement from the lender?

I think its a great route and have been gearing up myself to do the FHA 203K route myself. Tricky or not I feel like its the fastest way into a property because I wont have 20 percent down for quite sometime.

Something else to consider is that a pure FHA loan may have some requirements on the condition of the property. If the house is too dilapidated they may not approve it.

...Following the response

Are you having trouble moving your wholesales with you current avenues? I have been hoping over time that the marketplace will develop into a good source to keep my eye on but for my area I have never seen a deal posted so I rarely check it anymore.

Home Depot cabinets look good enough for flips in my area for middle income housing. They look nice and are easy to put together a nice set from stuff right off the shelf. But with that said its good they have a nice return policy because I have returned multiple cabinets that fell apart during shipping. Another investor buddy told me that the Lowes cabinets are a little better quality and hold together in shipping.

Hey @Hayden Smith,

Thats awesome to hear you are getting out there and making transactions happen. Based on what you have done already I am guessing you like the long term appreciation and cashflow approach to real estate investing.

I dont have any information on how you acquired your other properties or what your financial position so take my advice as "what I would do" advice.

You just bought a home that you put down between 5-20% so it probably drained you a bit. The quickest way into your next cashflowing property would be to follow the method many refer to as the BRRRR method (Not sure how many R's go on the end). The idea is to get into a property with a short term loan and then force some appreciation by making needed repairs and updates and then refinancing for the longterm with a traditional mortgage. If you can get the numbers to work out where your all in investment is less than 80% of the appraised value the you can come out of the refinance with no money left in the deal and ready to go do it again.

Best Wishes!

Investment Info:

Single-family residence fix & flip investment in Brigham City.

Purchase price: $156,000
Cash invested: $66,000
Sale price: $265,000

Purchased this home on seller financing with a 10 year balloon because we had an option to rent it as two units and utilities were seperately metered.

Sale Price=$265,000
Rehab Costs=$44,000
Closing Costs=$15,000
Holding Costs=$5,500
Purchase Price=$156,000

Net Profit=$44,500

What made you interested in investing in this type of deal?

This property was previously used as a legal duplex and could have easily been converted back. Everything was still seperately metered. This made the deal feasible in the long term and short term. I like the seperate exit strategies.

How did you find this deal and how did you negotiate it?

I used road side signs ("We Buy Houses"). I got the call and visited him that day. I sent him two offers that day as well by email. A cash offer and a seller finance offer. It took him about two weeks but he did call me back after he sorted it out with his soon to be X-wife and he took my seller finance offer without anymore haggling.

How did you finance this deal?

I acquired a money partner that I had met from a local REIA and he brang in $15,000 down for the seller and then we took over his loan. The same partner then financed the rehab costs of $44,000 and other holding costs.

How did you add value to the deal?

Carpet paint kitchens and tile.

Then I marketed the property for sale as both a duplex or a single family with a mother-in-law apartment

@Anson Baker meet Kevin is an entertainer for sure!

@Daniel Howard If your looking on MLS for your target property I reccomend connecting with @Steve Theobald. He puts together a list of the best potential properties based on cashflow and many other formulas. He is scouring daily for these.

Another recommendation would be to consider what you could rent the other unit not only as a lease but also as maybe a nightly rental on AirBnB or VRBO. Check out airdna.com for an estimate of what you could get. Here in Utah its hard to get the perfect house hack where your making a profit but I have seen many people do it with airbnb.

@Zachary Jensen

@Zachary Jensen try contacting @Jeff Rappaport or Rebecca Jensen. I have seen a few deals recently from them for duplexes in Ogden. You may be able to take these down with Hard Money and then refi later after repairs into your long term strategy.

@Eric Gardiner thats correct I am trying to catch these homes before they get to auction and get the homeowners some money if they have equity. 

I find out alot about some of the properties that end up at auction if thats ever of value to know what your bidding on?

@William Robison thank you very much for that website. I found the notice immediately. Looks like the property is going to be sold next Tuesday! Yikes.

I have been chasing these NOD's since early fall. The title company I work with sends me a list once a day. Its seems to have been a consistent steady amount of defaults primarily in the war zones of Ogden.