All Forum Posts by: Patrick Wheeler

Project Update

Lot of change over the last week and this is probably my favorite part of the project. We should be about 2-3 weeks away from finishing so it's time to start marketing the property!

@Rich Rinaldi Appreciate it!

@Brian Garrett Thanks! Couldn't agree more. I will have another update on the project next week!

@Brian Garrett After paying back both lenders, the target profit is about 32k and that's assuming I can sell it for 400k, which I have my reservations about. You're definitely correct in assuming I overpaid for the property. I was just very eager to get my first fully solo deal under my belt after I was unable to complete a couple previous deals with some partners.

My next deal, which is under contract currently, has a much much higher target profit and sticks to the 70% rule. At the end of the day, I'm just looking at this deal as my education.

Project Update

Unfortunately I got away from keeping this project updated, but should be back to providing a more consistent record! We are right around the halfway mark in the project and so far it really has been a pretty smooth ride. The other week we got all the rough work signed off on, so last week began the phase of putting it all back together. I'm a little behind on posting the phases of the project here so I wanted to start with these pictures!

We set such a conservative timeline in the beginning, that we are looking pretty good in regards to our schedule, but there has definitely been areas that I would like to improve upon moving forward.

@Richard Charity House hacking is almost always an amazing way to get started in real estate. The only real pitfalls that I have heard and can see that side of the argument for, are living next to your tenants and your inability to move around as freely as renters.

I'm assuming, however, your father does not plan on moving around a lot anymore, so as long as he is aware of, and prepares himself for the potential challenges that come with living next to your tenants, it should be a solid plan!

I am still currently looking to house hack as well.

@Sharron Menninger Just did some quick research and it looks like the sprinkler system costs about $7,000/unit  and fire alarm system about $2,150/unit.

The source was mass.gov so it should be pretty reliable and you can find the link here.

Hope that helps! 

@Connie H. I don't have too much input towards what might be the best decision, although I would lean towards targeting Malden for MF properties. I did, however, want to nitpick something that you mentioned in your post.

Don't let a full time job prevent you from flipping/condo conversions IF that is something you want to do. I work full time, but I am currently flipping a house and should be adding a second very shortly. I simply partnered with a GC (who came highly recommended) and he handles 100% of the rehab process, while I take care of everything else.

If you aren't interested, then obviously this is irrelevant, I just know that I never really intended on flipping, but a while back I decided to do whatever the market is most allowing for. 

@Account Closed Live off-market! Spend some time driving these areas and see which one you could see yourself investing in most.

@Account Closed Thanks for providing the additional info on the financing! In terms of the rental numbers, I meant for example, what do you expect PITI to be, plus vacancy (assuming 0-2%?), property management, etc? If I remember correctly, with your strategy (gut renos) you don't really factor in repairs/maintenance and capex, which makes sense. I just always like to see monthly expense numbers so I can always be practicing running the numbers myself like I did with your financing numbers!

If you don't mind sharing those rental numbers*!

@Account Closed Congrats! I really like how you make gut renos on a rental property work. Can you talk a bit more about the numbers and financing? What bank do you use and where are you getting the 25% down? I'd also love to see all the numbers you used to analyze the rental once rehabbed.

This is a perfect example of why I'm obsessed with networking with as many people as possible right now.