All Forum Posts by: Octavio Alvarez

Thank you both for your input! It was greatly appreciated! You helped me avoid taking this deal and focus on better opportunities. 

Kind Regards

Hello All!

I recently found a potential property that I believe would make for a good first flip. The seller is motivated, and the house is in a great neighborhood. The house is currently listed at $325,000, but the sellers agent mentioned they would take something around $290,000. After running comps within a 1/2 mile radius, I believe the house can sell between $360,000 easily. The issue is as follows:

-Our estimated construction cost are around $60,000 to leave the house TurnKey ready. To give more information, the house is listed as a 3/2, but the "masterbed" is really an enclosed patio area. Its oddly placed, and has a sliding glass door for an entrance. Plus, its the only exit to the backyard. Simply put, the layout is obsolete and in need of restructuring. 

-I am being financed through a hard money leader that with an interest rate of 12% for 70% ARV, which eats a very big chunk of my potential returns. Since I am just starting out, I dont know if I can get better terms, or if I have to accept that these are the conditions for novices starting out.

SO, Im left wondering if these is a deal worth pursuing. I believe I can lower the construction cost and just do cosmetic work, but I wouldn't know how much I can sell the property for with the weird room.

Any and all advice is most welcomed!!

Hello All, 

My name is Octavio. I've been interested in REI for a good while now, and I've been reading as many articles and books as I can find to get a good grasp on the subject. However, I find myself at a crossroads of sort. I've saved enough money in my bank to put down a good amount for a property(ideally to start out with a wholesale), but Im also considering doing an MBA with a concentration in real estate. I wanted to get other link-minded opinions of whats the best route to take.

I will be honest, with all the book and articles, I still feel a little timid to get started and get a property with all the risks involved. So I look at the MBA as a safer alternative. Even wholesales seem risky, given that I am in the Miami market. 

Any and all advice is welcomed!