All Forum Posts by: Ryan K.

I'd try to meet in the middle on this one since it's been on the market for 35 days and it's the first offer. Fix the items that are very easy and low cost plus anything that's a safety concern. See if she will accept those items but not the rest. Good luck.

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I wouldn't use the poison bait - they will die and the odor will be nasty for up to a month depending on where they die. I find a bunch of strategically placed glue traps work best. But beware you will find the nice alive and stuck to trap and will need to deal with it which can hard for some people.

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Great work and very motivational, I enjoyed reading and seeing the transformation of the properties.

One item you you might want to double check on is taxes. You stated you will only pay capital gains if held for 4-6 months, but the IRS sees it (flipping) as ordinary income with self employment taxes. Typically amounting to much more than capital gains which only applies if asset held for more than 12 months.

Originally posted by @Joseph England:

@Ian Barnes

I have experienced GCs asking anywhere from 10% to as high as %60 as a upfront deposit! At the end of day you have to come to agreement that works for the GC (to get the work started) and for you (to mitigate risk or poor work or them walking away with your money). What I like to do with GCs working with me for the first time is pay for materials up front which can be 15%-20% and then spread all they labor payments over the next number of weeks, and they are only paid by me when I personally inspect the work done. After more trust is built between you and a GC payment options maybe adjusted but never over expose yourself.

@Oumar Bah

For this property I used a private money lender who funded 90% of the purchase and rehab and I supplied the rest. Since I started my investing I have only used conventional loans twice. They were both for turn key properties. Conventional lenders will not lend on distressed properties (ie.If the HVAC doesn't work they wont lend). For all these rehabs I have done cash of some form ie. private money, hard money, my own money and combination of two or three of these.

@Keri Ayres

They do decrease your ROI but that is accepted loss in my strategy. I can either wait a whole year to get a return on my money so it can be used or I can accept the capital gains tax and get my money back in usually 4-6 months and then use it to fund the next project. Also you can mitigate the impact of these taxes with smart tax strategies. Everyone has their own strategies and I choose to pay a little extra to expand quicker.

I hoped my answers helped

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Great job Ron! I'm in Chesterfield as well. I have friends in Bon Air and that area is known for great schools so a nice area to flip or own a rental. Keep up the good work!

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Are the enclosed garage and porch truly living space, meaning do they have heat/AC? The county and any appraiser will closely look at that aspect to determine sq foot of living space.

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Behr premium from Home Depot is a good middle ground. Just be sure to buy in 5 gallon buckets wherever possible and get a pro discount too. I've had plenty of compliments on my recent paint job so I know others like the paint quality. Also you can get kilz primer tinted and then only need one coat of the behr paint for final coat. The kilz in 5 gallon buckets is very inexpensive.

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I personally look more at total ROI which included principle pay down. Appreciation can also be figured into the calculation but it is more of a guesstimate.

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Go with the taller cabinets. I hate seeing space above the cabinets in a kitchen, looks unfinished to me personally. It should stand out with the larger/taller cabinets too.

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I only used it as ceiling paint, white flat. It ok for the price of 5 gallons buckets especially with a pro discount. I didn't use it on walls so can't help there. For a flip I would use a higher quality paint on walls but on a rental it would be ok on walls.

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I have to agree with the above regarding sealing the crawl space due to high humidity in ambient air. Years ago it was standard practice to ventilate crawl space. The problem in the humid months is that the hot humid air enters through the vents and then cools and drops the moisture/condensate. I've see this in my personal home plus many others here in Virginia.

I've spoke with moisture control specialists and contractors who all seem to state that keeping the vents shut is the best current practice for this area.

Best bang for the buck is the vapor barrier, then keeping it sealed up at least during the humid months (I'd keep the vents sealed year round).

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All Forum Posts by: Ryan K.

Ryan K. has started 16 posts and replied 137 times.

Post: Buyer Inspection issues

Post: Mouse Problem - Call the Pros?

Post: 15 Rehabs in 10 Months in Baltimore City!

Post: Latest Flip! Sold! First person that looked at it for full price!

Post: Previous owner didn't pull permits for enclosure, now I'm selling

Post: Interior Painting

Post: Cash ROI vs Total ROI when investing in a rental?

Post: 36" or 30" cabinets on 8' ceiling ?

Post: Quality of Behr Pro I 300 paint ?

Post: Keeping crawlspace moisture down in the southeast