All Forum Posts by: Robert McAllister

I love the idea of a 2/1 and I'm actually looking at one myself. The rents are significantly different though. 2/1 home will pull $1000 here and a 3/2 would pull 1500-1600... so, gotta run the numbers to do what makes sense in your market.

I concur with David here for all the reasons. Super good idea if you have enough equity available. Don't do 100% though, that may be too risky if the value of the primary home drops or you need to tap into it a little more. Always refinance it when the job is done!

Congrats on your project! If anything you will learn a lot! As for vetting a contractor, the best way is to meet in person, go to a job site he's done, speak with his references. He should be able to give you all his past jobs and say "call any of them" without issue. Good plan, good luck!

The one thing for me... integrity. I want someone who is strong in this area. All else can be learned. Integrity gets immediate trust from me. Thanks for sharing your story!

Thank you William. A very helpful list. I will try to condense this for a cheat sheet for my investors if you don't mind. Super appreciative!

Can you move forward and fence your property, including a safe area around the parking? That would mitigate any lawsuits you could be involved?

In the end, people sell for all kinds of reasons. It doesn't matter why. They are just done with it. The property is available for you now. If it is profitable go for it. Run the numbers in worst-case scenarios for that margin. NOI, Cash on Cash, Net, Cap Rates. Set your minimums and then you'll know.

Sounds like a sure thing, full of profit and you walk away to start a new deal fresh. Take the money.

Good call Jaysen. Emotions are getting in the way, need to clear that out and approach from the logic perspective.

Thank you Tim! I left CapEx off because of all the work going in the front end on rehab. I would add that back in after 12 months or so. ARV is $225,000 estimated, so I could refi $180,000, cleared with lender already.