All Forum Posts by: Mike Fingleton

Hey Robert, sounds like an interesting deal! Mobile homes can be great flips if you understand the demand in your market.. but a couple of things jump out. Your spread looks decent on paper $150K purchase with a $200K sale but with only $5K in rehab, I’d be asking what exactly needs to be done and if that’s truly enough to maximize value. Have you factored in holding costs, closing costs, and potential surprises? Even on light rehabs, things like soft flooring, outdated wiring, or hidden plumbing issues in mobile homes can eat into margins fast. Also, financing mobile homes can be tricky depending on whether it's on leased land or real property.. are you running into any lender hesitations? Curious, what’s your exit plan if the sale price doesn’t hit $200K? Are you open to renting it out, or is this strictly a flip?

Hey Robert, welcome to the world of real estate investimg! Sounds like you've got a solid foundation.. an LLC, funding, and creative financing strategies are already huge steps forward. I remember when I first got started, I thought reading books and analyzing deals was enough.. but once you start making offers and managing properties, that's when the real learning kicks in. Since you're focusing on both single and multi-family, I'd ask, what's your game plan for market selection? I've seen investors get stuck in analysis paralysis, trying to time the "perfect" market instead of just jumping in where the numbers work. For example, in Phoenix (where I'm based), cap rates have compressed over the years, but strong rent growth and job migration have kept deals attractive.. compared to, say, San Diego, where the appreciation play is stronger than cash flow. A buddy of mine who started around the same time I did got caught chasing every "hot" market tip and ended up never buying for the first three years.. meanwhile, another investor I know locked in deals in San Antonio and has tripled his portfolio because he committed to a market early. My take? All channels work, but some work more often than others. Off-market leads from probate attorneys, solid agent connections, and understanding local zoning/ADU rules can unlock way better deals than just browsing the MLS or hoping for a wholesale gem. Also, curious..how's your financing structured? Are you leveraging private lenders, seller financing, or traditional bank loans? I've seen some investors get creative with HELOCs or portfolio loans to scale faster. What's your biggest challenge right now?

Hey Hai,

It sounds like you’ve got a bit of a messy situation on your hands, but the good news is, with the right approach, you can navigate it smoothly. First off, addressing the damages and cleaning needs is a good start, but you’ll want to be sure you’re not overstepping your legal boundaries with the security deposit. In my experience, transparency and documentation are key here...make sure you’re itemizing everything with photos and a clear breakdown of the costs.

Regarding the excessive dog hair and damage to the bathroom door and trim, you'll want to start by pricing out professional cleaning services. I’ve had cases where it seemed like an easy fix, but dog hair can be a real nuisance that requires specialty equipment or extra cleaning hours. As for the door and trim damage, get a couple of estimates on what it would cost to repair or replace those items. With the smoking, if you don’t have direct evidence but strongly suspect it, consider bringing in a professional to test the air quality or check for lingering odors. Many landlords I know have gone through this...and you’d be surprised how much odor can stick to things like carpets, walls, and fabrics even with a no-smoking clause in the lease. From what I’ve heard, it’s common for some smoke to linger even after you think you’ve cleaned it all up.

I’ve had a similar scenario before with a tenant who had a dog with some, let’s say, very sharp nails. The cost for cleaning and replacing damaged trim added up quickly. As for the smoking, after some back and forth, I ended up taking a slightly larger chunk out of the deposit to cover deep cleaning and the replacement of the carpet, which was saturated with smoke smell. It's always a bit of a balancing act, but it’s critical to follow the lease terms and local laws.

Have you looked into professional cleaners who specialize in post-smoking cleanup? It can definately be worth the investment if the odor is really pervasive.

Hey Javier,

Congrats on securing a property at such a great price! Locking it in for $33K when the ARV is between $103K and $117K is an incredible start. Now, whether you wholesale or flip depends on your goals and bandwidth. Wholesaling could be an easy win if you're looking to move quickly. You've already negotiated a great deal, so passing it along could net you a solid return without the headaches of renovation. But, if you're in it for the long haul and have the resources, flipping might be the better route. I've had a similar situation before where the initial numbers were tight, but after diving into the rehab, the profit potential shot up especially when you get the right contractors and manage timelines efficiently.

That said, flipping is a more involved process. You’ll want to make sure you’ve got a solid team in place, and with repairs like a new roof and retaining wall, you’re looking at an investment that requires time and attention. I’ve worked with a lot of properties in similar conditions, and with the right rehab, you can definitely make a great return. But keep in mind, things like contractor delays or material costs can throw off your numbers, so you’ll want to plan for some flexibility. If you’re new to flipping, maybe start with a smaller project to test the waters before diving into a larger one. Have you lined up contractors yet, or are you considering doing it yourself? Curious to hear more about your plan and what you’re thinking for this property!

Hey Mat,

I completely understand where you’re coming from, and I think you're asking the right questions here. First off, kudos for the careful thought you're putting into this decision! The last thing anyone wants is to jump into something that could put them in a tough spot, and you're showing a lot of restraint, which is a big plus.

Let me tell you a little story from my early years in real estate, which might give you a clearer picture. I was once in a similar situation low cash flow, lots of desire to get out of my parent's place, and the temptation to jump on a deal that seemed too good to pass up. I ended up stretching myself thinner than I should’ve, not accounting for some unexpected repairs and the challenges of managing a rental property with little experience. It wasn’t the worst outcome, but it definitely taught me to be cautious and to make sure I wasn't taking on more risk than I could comfortably handle.

In your case, you've got some solid pros here, especially with your savings cushion. But, I'd caution against overextending yourself, especially with the debt you've mentioned. While it's true that you're not paying any interest on that credit card debt at the moment, it's still something to factor into your overall financial health. On top of that, if the HOA has no reserves, you might be looking at some unexpected fees down the road, and the previous buyer's financing falling through might hint at deeper issues with the property.

The idea of buying the place, renting it out, and then moving in later could work, but you should ask yourself: do you feel confident managing a rental property from a distance, especially with your current income situation? As for taking out an additional loan on top of the purchase price, that’s another layer of risk that could come back to bite you down the line. Real estate can be a fantastic wealth-building tool, but the first property should be more about stability and long-term gains rather than short-term sacrifices.

Here’s what I would suggest: If you're really set on making a move now, maybe find a way to negotiate that price down..maybe a little under $230K, even if they won’t budge much. Otherwise, I’d consider sitting tight and building up even more reserves before diving into such a big commitment. I know the market’s moving, but patience is a virtue in real estate. With your current situation, I'd err on the side of caution, and I think you’ll be in a much stronger position in six months or a year.

But here's a question for you: Have you considered other areas of South Florida where you might find a better deal, or perhaps even something that's a little less on your plate in terms of potential headaches?

Let’s keep the conversation going, there are a lot of ways to approach this.

Hello Brandon! I'm really happy you jumped in.. is there a particular formula you rely on to gauge a property's viability?

Hello Neville! So nice to greet a new member.. have you figured out who'll handle your property management needs?

Hello Michael! Great to read your story.. do you see yourself scaling up quickly or taking it slow at first?

Hi Steven! I'm glad you're part of this.. any strategies in mind for building a solid local network?

Hello Kurtis!

Welcome to the bigger pockets family.. what's the key factor that made you choose real estate over other investments?