All Forum Posts by: Russell Butler

I need to start the process of finding one that I trust and that doesn't mind all of the market research and time that comes with REI

What are the best tools to use to evaluate the current market in my area? I have pulled zillow data just to see what is there, but most of the recent sales in my area do not show a sale price. 

Am I going to need to make friends with a real estate agent and have comps ran on every property I look at, or is it possible to identify the $/sq ft range for my desired investment area and figure deals within that range?

I have thought about this method as well. 

I am currently on a crash course to clear my Revolving debt and pulled a loan from my 401K to do so. I looked at it this way (from a debt consolidation standpoint) I was paying $200/mo in payments on CC's. A large portion of that was going to interest on the 2 cards that I paid off. My 401K payment is $97/mo and I pay ~5% interest on the loan.  I was using after tax dollars before to pay on the CC's and not making much headway due to the interest. With the 401K loan, that 5% interest I am paying, I am paying to myself. It all goes back into my 401K account in the end. On average my account was gaining 3% per year, though I have taken a blood bath through the first part of the year. So, I feel that I will come out way ahead in the end. It cleared my CC debt, freed my credit report of those balances, and I will have the 401K loan paid back to myself within 12 months. Win Win in my book.

Now, using is as an investment vessel could be a whole different story, but I still see it as being a potential tool, especially to help someone that doesn't have the liquid assets to jump right in the game. Pull the $$ from your 401K that you need for the flip. Rehab and turn the property and pay yourself back.  I can only see 3 potential risk factors in this method.

1. You lose your job and the balance comes due within 90 days ore you are penalized. Do you feel you have job security?

2. You lose money on the flip, or it takes a while to get it sold, thus draining your resources. How confident are you in the market you plan to buy in? How confident are you in your assessment of the cost of the flip?

3. I don't see this as being a huge detriment, especially in the current state of the stock market. You pull the $$$ out of your 401K now and the cost per share is low. The market takes an upturn before you are able to repay the loan back so the money is being put back at a higher cost per share, thus shrinking your overall position in your investments. This is where you have to factor in your ROI for the project and will the potential long term effects, hopefully positive, from the flip out weigh the potential long term effects of a reduced position in your investments? The flip side of this is that you sell shares for the loan and the price per share continues to drop and you are able to get back in and increase your overall position in those investments.

Ultimately, you are the only one that can make the informed decision as to the best method for your current situation! All we can do is help provide the possible pros and cons to help you see the overall big picture and potential impacts, whether positive or negative!

 Thank you for the input. From what I have read so far, this is pretty much what I have learned. 

I ended up with a bit more CC debt than I expected paying for our wedding last November, combine that with having our first baby this coming July, my cash flow is a bit jacked up. We are on a kamikaze course to pay off our debt, adjust to the coming expenses associated with the baby, and improve our reserves and free cash!

In the mean time, any DF/W investors who are interested in investing in the Greenville and Forney area and need a scout, let me know!

I have, unfortunately missed out on several investment opportunities over the last couple of years due to my financial situation. My goal this year is to clear up my finances and start building my liquid savings to be able to jump on the good deals when I find them.  

I have another opportunity that has presented itself, I feel like the area is prime for an increase in property value. I don't have the specifics yet on asking pricing and shape of the property. Unfortunately I'm not liquid enough and don't currently have the resources to leverage the down payment money to pick up an investment property.

Are there investors who will lend the 20% down? Does the 100% Hard Money lender really exist and is it possible on a first deal?

I agree with most of what has been said here, the cabinets look good from the views we have.  The second picture, maybe spring for new doors, shaker doors can be cost effective. I agree with the dishwasher being an added expense down the road. Newer appliances are not built like the older ones. I am in residential new construction and the number of warranty calls on appliances is really depressing. You would think buying new appliances you would get several years trouble free with modest use.  We moved into our current home almost 2 years ago and had the washing machine worked on twice in the first 12 months.  

It looks like you may have tile back splashes? I would freshen up the grout and try to brighten the space up and make it more inviting, maybe even a re-paint on the cabinets to help out and call it good.

@Andy Webb Yessir, Greenville is my target market. I work about an hour from home so trying to take on projects or shop markets much outside of my immediate area would be too demanding of my time!

Thank you @james wise I look forward to learning a lot from the community!

 At the current time, I'm not sure that I can devote the time it would require to hunt for investors. Combine that with my location and it would be really tough. I am out in Greenville. We are on the verge of progress and property values are starting to rise. The new housing market is starting to move a little bit, but we only have one major builder and 1 or 2 local guys building out here right now.

Thank you. The last couple of years have been both phenomenal and difficult financially. I started my current position 3 years ago this May, in that 3 years I have increased my base salary $20K as well as added virtually unlimited Bonus potential which added almost $20k in additional income last year.  My position lends itself well to property rehab. I have a black book full of trades that can do everything from concrete work to finish framing.

The unfortunate part of the last three years (unfortunate financially!) is that I got married, bought a house, and did a modest remodel  of our new, to us, home.  We got married in November and found out we were going to be having a baby the same day! So, through the course of buying the house I burned through my savings. With the remodel we ran up some credit card debt. Our budget minded wedding put some more credit card debt on top of that! So, I am on a kamikaze course this year to knock out my credit card debt, replenish my savings, and find one of the great deals that I have missed out on the last couple of years. Thankfully through our home renovation we have added $30K worth of equity to our home with a $5-8k renovation!

I have been reading blog posts and hope to spend some time this weekend in the forums. I am intrigued by the idea of $0 out of pocket purchases as this would get me some skin in the game quicker than paying off my debt and rebuilding my savings, all while adding the expense of a new baby!

Over the last 2 years I have missed out on 2 opportunities and may miss out on my 3rd. The first came when the house directly behind me went up for sale. It was a REO and extremely distressed. It had been a drug house at one point but had since been vacant for years. It was purchased for $42K, completely rehabbed, and sold for $129K. I estimate he had ~$50k in the rehab. I have also come across a few rental properties through acquaintances and friends who are either moving out of state and don't want to deal with managing the property, or older couples looking to get out of the rental game. So it has been very frustrating to not be in a position to capitalize on these opportunities!