All Forum Posts by: Patrick Hensley

Thanks for the resposes!

Yeah an FHA loan is one option for me and will likely go that route. Investors was too specific of a term when I meant to be generic in saying repaying my loan (wherever it comes from).

I was more or less asking if anyone has done this and run into issue with the rehab itself that would make me living in the home not possible. Unforeseen tax issues because its a primary residence (though I think it really helps me more than hurts). unexpected reasons I would have to be out of the house for extended periods of time.

I am specifically looking for a house that needs works, because, in my area these are very undervalued from what I have seen. I will see a big REI if I get the right place.

The problem with FHA loans and other bank loans, they require inspections. I will likely only buy a house that I can get an inspection done on (as it will be my first), but sometimes screaming deals come across cash only, as is. If I can get in an look at the foundation and roof on one of these, I will need private investors.

I want to take advantage of these while they are still hot and undervalued. I saw a 4 bed 3 bath 2300sq ft house in a nice area sell for $150k cash and rehabbed and flipped in 4 months for $340k. I know this because I was going to make this house my first attempt, but couldnt come up with the money in time.

I am currently in a situation where I could do this and wanted to see if there are any flaws or if its a terrible idea.

I am looking to buy a fix and flip property. It will be my first and I will require investors. I am looking for a house at the right price knowing this is my first flip and will likely take more time than expected.

My plan is to live in the house I plan to flip and pay the investors back as I live there. Essentially me paying a mortgage with the intent to sell as soon as it is complete. This way, my investors would see monthly return right away, I would not see a change in personal budget as it would replace the month to month rent I am paying at my current house. I would also be at the house every day which would make my work easier and more frequent.

I would move in with minimalistic items as to not interfere with the rehab.

My profession is 80% project management, so I would manage my project doing some work myself and the rest would be contracted work.

Is this a bad plan?

Are there flaws or potential hang ups?

Advice?

Thanks for the warm welcome everybody. I took your advice and found a local RE investors club and coincidentally, they have a beginners speaking panel on Tuesday. Good timing!

This is my first real post, so I apologize if there is a better way to present this or it has already been answered counltess times.

When I am ready for my first purchase, I plan to do a lot of the rehad myself. Being an engineer with house rehab experience, I feel like I can do a lot. But, I know I cant do everything that will need to be done and know I should budget for a contractor to finish when I realize I bit off more than I can chew.

What should I look for in a good first experience with a contractor so I dont get ripped off or left with a bad result?

I am new to the site and in reality new to real estate. I am looking to meet mentors and coaches to help me through the process of buying and renting out or flipping a property. I have been monitoring the market in my area for about 3 years to start getting a feel for price trends and what sells in what locations. I am hoping to find someone with experience that I can intern/apprentice with to learn the ins and outs. Eventually will be looking to connect with investors way down the road, but, it doesnt hurt to make connections now.