All Forum Posts by: Paul Choi

@Account Closed

At LP $80k and reno $50k and ARV $130k, the numbers just didn't make sense. Alot of investors probably just glanced at it, see that it didn't work, then moved on to the next deal.

Those that went to the next step and made an offer, the seller probably balked at the low offer and rejected. Now that time has passed, maybe the seller is realizing that the LP is too high, or needs the money more urgently now.

There are investors who target expired/old listings like this one.

Have you checked to see if there are any inspections or reports on file? ie, major foundation issues, pest, etc.?

Typically, finishes work does not require a permit - flooring, paint, replacing interior doors in the same location, etc.

Almost everything else typically requires a permit.  Need to go to your county and city building dept to check.

For flippers (who want to sell the property in less than a year) and investors with rental properties who are not licensed contractor themselves, need to hire a licensed Contractor to do the work.  I've heard of people who get around this in different ways to save costs but it's a risk they're running.  

@Keeya Malo Sounds like you have strong financials! IMO, I like multifamily units than SFH for investments and cash flow. MFH has better economies of scale (ie. 1 roof to repair for 4 units as oppose to 4 roofs for 4 SFH), and a multitude of other reasons. I also think MFH have less price swings up and down and stable in the long term. Others may disagree. Any reason why you are thinking of only SFH?

Great thread!  Looking for one in the San Francisco Bay Area, commercial property.

@Lena Wang  Looks like a decent deal on paper.  Have you ran a BP rental calculator?  I quickly plugged some numbers in and it looks like you would be cash flowing $1000+ total,  after including maintenance, capex, property management etc.  Down pay is quite a bit...35% ~$80k. 17.39% cash on cash ROI

Like Jad said, put it in a LLC to offer some protection.  Is the neighborhood decent?  For example, there won't be a mass exodus of people?

Typically people may put 1-3 properties per LLC formed. The mix of which property in which LLC depends on the amount of equity in each property (risk exposure) and which properties maintain the most value long term, such as in stable appreciating markets in good neighborhoods.

@Lindsay Ash Yeah I feel you.  SF Bay Area is very expensive.  For appreciation plays (which I don't really do) there are deals but for cash flow, need to venture out of the area.  Be willing to have a 2 hour drive search area if the numbers don't work in the immediate area.

@Samuel Bavido Awesome! glad I can help.

I still have a subscription to it.  Need various contracts for different investors and transactions.

@Lindsay Ash I'm located in SF Bay Area and buy in mostly in California.  

@Lindsay Ash I agree!  For my first flip property, I made 10 offers on 10 different properties and got rejected or outbid for every single one.  Kept at it and landed the 11th one.  Can't give up or get demoralized...