All Forum Posts by: David Sohn

Hey @Kathleen Diaz - congrats on finding your first potential deal!

60-150k for ARV is a huge range for ARV.

First thing I would do here is narrow the ARV down as much as you can before you spend time really digging into the seller financing piece.

Next I would try to understand what the property needs for updates and what that's going to cost you.  

At 25k purchase price I'm guessing (again...not knowing anything else about the property..) this is not a simple cosmetic flip.  

Let's just assume it's a full cosmetic flip plus some systems updates and a roof.  It might need more...maybe less but let's just use this as a really simple example to help you estimate.  I'm also assuming you are hiring out the work (since it's an hour away..)

Let's use a really oversimplified estimate for repairs..

• $30/sq ft. * 1300 = 39k for cosmetic work 
• New Roof = 7-10k for new roof ($7500 as safe #)
• 10k for new HVAC systems & updates

you're at 56.5k on a really quick swag.  

So, 25k + 56.5k = 81k just for purchase plus repairs.  

You'll also need to take into account... 

• other purchase costs, cost of money (seller financing plus rehab costs and financing), holding costs and selling costs.

In this example it feels like you could be all in close to $100k (assuming repairs are in the 50-60k range). So you'd want to make sure the ARV was certainly in the higher end of that range 60k-150k range.

Hopefully this doesn't discourage you just wanted to offer some quick thoughts and other things to think about.  Happy to help analyze in more detail if you'd like...feel free to PM me more details and I'd be happy to give you some more thoughts.

Best of luck!

@Chad Fernendaz - No doubt adding a bathroom is usually a great idea!  To echo many of @Patrice Boenzi's thoughts here...

Hard to make the decision without some more info though.

Are you thinking a full bath or only half bath?  (Sounds like full bath..)  Figure that's going to run you anywhere from 6k-10k (realize a large range but depends on how big the bathroom and how nice the finishes are).

Look at comps for 3bed 2baths and see if the cost of adding that bathroom is going to support a return on that investment in both time on market and selling price.  

I was faced with a similar situation on a flip in Maine (little north of you :) -- it was a 2/1 (no bath upstairs) and after much consideration we ended up adding a full bath upstairs (standup shower).  We feel it helped the house sell more quickly and at the price we were looking for. 

Best of luck!

Welcome @Kathleen Diaz!  Definitely check out the BP Podcast and Guides.  Great places to get started!

Good luck!

Welcome @Steve Brigham, best of luck on your upcoming flip!

@Dan Pezzano - Welcome to BP and good luck in your first endeavor!  I'm also in the market for a good CPA and tax partner, very interested to hear what you find out.

@Steven Hamilton II - quick question and then we can take conversation to PM (don't want to hijack Dan's thread here..) but do you work with investors in New England area?

Cheers,

David

Hey @Jose Bernard,

Welcome to the community and congrats on the project!  Another plug for J's book here -- they are great and come along with a number of great digital resources as well once you purchase.

Have you tried the BP FilePlace?  You'll find a number of rehab spreadsheets there that you can download and tweak to your needs.  Check out the popular files - some good ones there and if you dig deeper there's others as well.

Certainly helped get me and my business partner, @David Corey, get started and we then built out our own stuff but the FilePlace was a great resource for us as we were starting out.

Good luck!

Hey Nicole - welcome to the family!

My business partner, @David Corey, and I were both in a similar situation as you.  We are investors first but recognized the value in being a licensed agent to advance our overall business goals.  

We took the salesperson course from ERA in Worcester, took the test and then started shopping for investor friendly brokerages that would i) help us get established as agents and ii) allow us to grow our investment business.  We ended up talking to a few different shops, but hung our license with ERA and they have been great.  They offer an investor friendly program, lots of training and guidance and very good culture.  

Would encourage you to talk to a number of brokerages to understand their cost structure, training and mentoring programs and if they have any investor friendly programs.

Happy to discuss more if you'd like -- feel free to reach out.

Best,

David