All Forum Posts by: Peter Mckernan

Yes, MLS, you need to be very pinpointed with your numbers.. Have gotten some clients on market deals and with the expanding inventory the numbers have gotten thinner quickly.. The first one for one of my clients about 7 months ago got him a 30K return, and now those numbers are thinner off the numbers of that same deal if it was happening today.

Without even looking at the comps, this is my advice... If you are looking to breakeven or walkaway before turning to a rental (i.e. MTR, STR, or LTR).. You need to look at the option of going to the bottom dollar you can... Seems like 359,900 would be it... And see what happens.. then drop till you hit a point you get an offer..

The market across the US has had a high increase in inventory which has had a huge impact on demand... So you will need to make sure you are watching that and adjusting accordingly. 

Great move on renting out the place and going to get another place... The one thing I would tell you is that you need to raise rents each year. Soon with raising prices, repair costs/labor costs going up each year, HOA, Taxes, and all other items you will soon be negative. And you will not have buffer if that stuff does come up and you need to fix a bigger ticket item. Even with the best tenants you need to raise rents.. It is to keep the house nice, the ability to fix things when needed with the correct way to fix them, not fixing them when you have the money again or using someone that is not fit for the job to do the work.

I would just partner with a person that has done this before, or even get pointers from this person that has done flips before for a small fee to get it done if you are not partnering with them. This is stuff you need to learn prior to handing off to a project manager so you can tell the project manger what to do at that point in time the responsibility is pushed to them. 

Relationships, and building your own business on this would be the best move. For example, growing your business by meeting more people looking to do deals for example realtors that specialize in land deals would be good for ground up connections. The people that you want to grow your network with on the fix and flip side are wholesalers, probate attorney, trust attorneys and more. 

For the ways to really boil down the deal to get really good money is market yourself to owners that say have 1-3 parcels of land in the area you want and see about sending letters to them for selling their parcel. You can get a good price and you are direct to seller instead of facing wholesale fees or any other fee on how you get it.. You get it off market and thus (possible not pay market value for it). Same goes with homes as well. 

I would not spend the money on this for something you will be renting out.. If you are going to sell it later to capture the most money you can that is when you want to smooth coat/retexture. 

If you plan to call the city and do the whole permit process on the other stuff there is a high likelihood they call you out on the unpermitted room. I would get a quote from your contractor to see how much it would be to permit the room before calling in the city, or start the work on everything else. I would add that into your budget. The worst case would be you having a budget for 50K lets say and the inspector calls you out for the room that is in question and that is an extra 30K to do... You are now in a tight spot to finish it all. Quote from contractor, see how much it is and if you can afford it to convert to a permitted room and do the other remodel items in question. 

I would get a GC, there are so many times where if I did the deal and sub it out something would go wrong or I would really just lose the profit because it took too long to rehab. There are life lessons on taking the more costly road, learning and then down the road GCing it yourself. 

Yes these forms should or CAR forms should. If not I would do an addendum to the lease signed by all parties to confirm the rules are stated. Then when they hit the gate again you can reference what they signed and hold them liable. 

J Scott has a good one, and I would really get out to meetups that are local to your area... Also, I would be getting in touch with people currently doing flips in your area (by meetups) and going to visit their projects etc.