All Forum Posts by: Nick Ye

If I'm in your shoes I would drop price to sell it even if it means lose some money on this deal. Get your capital back, pay off your debt and move on to the next deal. A bad deal will dry you up slowly financially and mentally. Sometimes it is not worthy to "try to make it work". Learn the lesson and move on. Just my 2 cents. 

I'm trying to stay at 1%-1.5% monthly rent to total purchase price for my rentals in Fredericksburg and Stafford area. Although it doesn't generate 2% rent like other areas of the country, Fredericksburg area offers a strong buyer pool as people in government and defense industry constantly moving in and out of the area. Knowing I can unload my portfolio at market rate fairly quickly if needed adds quite some value to my long term investment strategy. To me that Fredericksburg area is just the sweet spot between PW county and Spotsylvania or Caroline county. 

Go for it and don't look back. I wish I have such an opportunity for expand my real estate portfolio while being paid by an employer for doing nothing. 

I invest in Fredericksburg. It offers better return on investment in comparison to other northern Virginia cities. Growth in the area is still strong. Waiting to see how government budget cut will impact housing market in the area. I do both flip and buy/hold.

Sell your mom's portion and walk away with cash. It's not worth it to fight with family over that amount money. You are still paying tax on that property for as long as your family owns it. 

On your situation you can go by cost-plus project management arrangement with your GC. Your GC gets 15-20% management fee on the renovation cost and you front all costs. You won't profit as much but it will be a good way to learn this business. A small profit is better than no profit and you will have to start from somewhere. 

Welcome to BP!

Welcome! The market is getting very competitive. You are definitely in the right place to learn.

Given that price vary quite a bit in different geographic markets, the quote you have received seems to be at higher end of retail range in a general high price market. Being a home owner vs a seasoned investor, I think it also prompt the contractor to price job at higher margin. I think the best bet is to ask for contractor referral from your local investors who had recently done bathroom projects. Basic bathroom renovation is very common in this business. A reasonable price for 5x8 bath should be in 8k-12k range with non-luxury finish.

Do it now as long as you are financially capable.