All Forum Posts by: Mike B.

@Tone Church - I think you have the right idea (2nd one).. tear down, build new home, sell for a profit. That also depends on what homes in that area are going for.  Then you have to factor in construction costs.  IF (using hypothetical numbers here) you're building a townhome for $250K and it's worth 500K in NY (unsure where in NY the home is), then I would say try to get funding via construction or private loan to (1) pay off the back taxes and (2) secure a developer who can do everything (architectural drawings, permits, build the house, etc).  If the land is in an area where multi-family would be profitable (and allowable via zoning codes) then I would say to build the biggest multi-unit possible (3-4 units at least).  

Would need to know more specifics to help more, but those are my broad recs. 

Selling the land "as is" wont fetch much.. because you have to pay back taxes, then demo/tear down etc could be 10-15K (or more depending on home size, etc) and in the end.. you'll be left with nothing (after closing costs etc). Thus the tear down and building of a new home to sell would be more profitable. 

@Christian Nachtrieb that depends.  My duplex apt (in the past) was listed end of summer, so I held out for a few weeks and in the end, my great tenants didnt want to sign a lease until the following month.  That sucked, but they also gave me deposit and 1st month rent in advance so I was ok with that. 

The waiting period is up to you.  I would say no more then 1 month.  IF you're able to wait, then you can wait but realize we are in October.. approaching holidays.. if you don't find a renter for this month or Nov.. it may not rent out until beginning of 2018 as most people focus on holidays etc.. and not house/apt shopping. 

Look at the stove.. electric or gas burners? that should be obvious.  The HVAC system look at the sides.. should be a gas line there connecting to the main unit.  If not.. it's likely all electric. 

@Christian Nachtrieb I checked out the ad.  Pictures/Apt look great.  Maybe be more clear in the ad it's a 1bd/bath, size of apt and ideal for 1 person or a couple only.  Including a diagram of apt layout helps sometimes.  

I'm unfamiliar with the area, so I would say to check rental comps and make sure your price is on par/competitive with others.  Sometimes if there's a lot of rentals on the market (same neighborhood and finishes) I undercut the competition by $50 to get a tenant in quickly.  Stay patient.. my first place.. I think I showed the place over a dozen times and screen 4 people until I finally got the right tenant in there.  But that paid for itself as my tenant took great care of the place, paid on time, and ended up staying for 3 years! Perfect timing.. they moved out and I increased rent with only having to do a quick cleaning of the apt because it was in great original shape (I did high end renovations when I first rented it). 

Good luck to you

Chandler Ludwick my company is incorporated, filing as a sub chapter S corp. has liability protection similar to LLC but much better tax advantages

I agree withTomer Shani In this market, making about $200 or more, per door is acceptable. Also calculate if you Live in one unit and rent the others out are you living completely mortgage free? You must consider the benefit to that as well because if you work a normal job with the W-2 salary you'll really start saving money from working since you'll be living rent/mortgage free. I lived in an owner occupied duplex for 4 years, I completely overhauled inside and out and in the end 2/3 of my mortgage is paid for and with my normal job I was able to pay down a lot of that and save for my next income property. also in selling it I had a gain with equity from appreciation that paid for my next home. Food for thought..

Know your market and target re-list (sales) price and ensure you don't go overbudget so that you have some profit in the end!

Purchase materials as cheaply as possible via Craigslist, Ebay, Amazon, etc. Check with local vendors (even Home Depot) if they give a discount to businesses (assuming you started an LLC.. if not, it's not the end of the world). Buying in bulk usually saves.

Hi all,

Doing a flip now, was wondering if any of you (who do flips or a major overhaul) try to sell privately first before listing on MLS with realtor? Don't get me wrong.. as soon as it's 100% done I'll list MLS with my realtor (who is great), but just thinking of listing it when it's 85% done, to try and get a private sale (mainly to save on realtor commissions). I do have access to a real estate attorney, lenders, and title company to facilitate private sale, thus my question.

I will be doing some 'word of mouth' advertising with peers that are either in the market for a new home or have friends about to purchase a new home (most of my friends want turn key properties).  

Thanks in advance for help/advice

As an FYI-- I got my electrical list (only needed about $1,000 in material total for the house) from my electrician went went price shopping.  Surprisingly.. home depot was cheaper then Billows, etc.   Also if you setup a Pro account and have an HD credit card (which I do), they send you coupons, including 10% off your purchase and/or no interest financing for 12-24 months! I ended up just paying for the material from HD, but I had a coupon to use, so that was nice! 

@Kyle D. great story and place! Since you're in a college town now, high rental market, you may want to look into purchasing a SFH to rent out to students. They can be a little more hassle to deal with (imagine 5-6 people in one home), however you only have 1 roof, 1 kitchen (and 1-2 bathrooms) to maintain. NET-ROI can be double digits if done correctly, depending on location, finishes, etc. I have a friend who only does student rentals and he loves it. He admits he gets more silly phone calls then he likes, but he now has systems in place to mitigate this (and also designates a "captain" for the home.. the only person who will be in charge of everything and contact the landlord vs. each individual person).

Best of luck!