All Forum Posts by: Christopher B.

I understand clearly what you're saying. What I am saying is you are projecting $12,500 profit on a house by trying to do nothing to it. If important things like roofs and electrical panels aren't going to pass inspection as-is, it's safe to assume the remainder of the house is just as outdated. I could be wrong but that's how it generally works, people don't want outdated houses at retail prices. So to me it sounds like your numbers could be thin but I'm not on the ground there. Good luck to you.

I'm not a fan of skinny deals, especially "quick"skinny deal. All about having minimum criteria and sticking to it, don't jump because you're anxious, be confident in the deal.

Now in my neck of the woods $25k in projected profits is a solid deal, $12,500 not so much. This would be 26% return on your cash though which is pretty good. My concern would be the rehab budget. $10k doesn't go far on a house and I've personally never seen a house look good after such a small budge.

Couple things to consider:

-new electrical service means old wiring. Is it aluminium? If so you're looking at a rewire. If not you still have to ground everything which isn't overly expensive but have you budgeted for that?

-if the roof is good why are you putting a new on?

-3/1 is a harder sale then 3/2 or even 2/2 imo

get any responses?

Find a rundown multi-family near the college. Have parents co-sign loan. Use your cash and/or construction loan towards the repairs. Live there while you learn more about real estate, build your credit, increase your income, and loanability. 

Most important point, if you're in school it's OK but have fun man. Hang with co-eds, go to a party of two, enjoy your young years. It's smart to get an early start but it doesn't mean you can enjoy things as well. 

The above is what I did while in college Tennessee, it worked out very well for me.

Starting from most recent:

1: agent found off-market property through their network

2: different agent locked down foreclosure before it hit market, wholesaled to me

3: wholesaler found a FSBO

4: purchased a package of 4 houses from an estate 

price, speed, and quality. Pick 2. For me quality can't be sacrificed, we don't slap stuff together. I need to make money so I tend to sacrifice speed of the 3. There's a line though and seems you feel he may be top slow. Try a new guy on the next small project you have. Keep a close eye on him at first. Ive been contemplating the same dilemma though as I look to scale my business up, I know I've missed out on some money myself.

getting started is hard as you've got little money, less experience, and people will be concerned about your legitimacy. I come from a very entrepreneurial family and it took awhile for me to get them on board as well. I spent a tremendous amount of time educating myself on rei, eventually they saw my interest and desire was sincere, focused, and that I was gaining the knowledge to be able to perform. Be creative, is there a way you can make it beneficial for them as well?

Your salary will be dependant on what you qualify for, as well as your debt to income ratio, credit score, credit history, job history, etc. As a first time home buyer there are good programs to help with some of those issues. Search around this site and Google 'first time home buyer programs" and you'll find a wealth of information.

Unless you're also working full-time you won't qualify financially on your own. Find someone's credit to piggyback off of. A parent or close aunt/uncle. I purchased my first rental while in college, a duplex that I am still living in today. Parents co-signed the loan and I refinanced after graduating college when I started making a little money. Was and still is a big help financially and has allowed me to grow more quickly. 

I 2nd sub-metering, the initial cost should be reasonable and the meter reading costs around $6/month which is passed on to the tenant in their bills, and the company also bills the tenants for you. At least that's how my local company does it. I've got a triplex I'm about to sub-meter the water on. 

William is spot on. Determine your costs before making an offer so it's solid, only renegotiate if you find big items like structural repairs, etc. I too was worried about closing but it's surprisingly simple, just hand the contract to the title company and they take it from there. Good luck