All Forum Posts by: Russ Wahl

@Ebony Brown

Hi there Ebony, we are fairly new to this game but yes a conventional loan may work. There are some hiccups to consider tho.

- banks may not loan on a property that needs too much work.

- you may have to pay penalties at time of re finance due to closing one mortgage and opening another.

- sometimes the refinance can be affected because it will be on record what u paid for the property. The appraisers lean on the original purchase price so that can reduce your value.

@Jordan Atkin

That makes more sense. Thanks Jordan. We are leaning towards selling it so we can use the profits to pursue a duplex in a better part of town.

@Pat L. Can I ask what other REI strategies your talking about?

@Jordan Atkin you would be a seller? Like a wholesaler? We have a private money investor in with us but for me that just adds to the stress because now it’s not just my money I could loose but someone else’s. I’m trying to soak in all of these strategies to be able to narrow it back down to find what fits best for us.

@Pat L.

So what would make you reluctant to do another? The time spent or the risk?

We would love to move into the flipping and holding (BRRR method) but we wanted to hold properties in a B neighbourhood. For us this is step one. I've been learning and researching this for about a year now, so we decided to take action instead of sitting on the sidelines. We have learned a lot already. Thank you for your input and insight

@Evan Polaski

This house is a 900 sqft 3-1

@Evan Polaski

Because it’s our first house on our own we will have to do the labour ourselves.

- roof (completed) $2200

- windows $4800 (ordered) 10 units

- furnace, water heater $10K (quoted)

- drywall and mud tape $3500

- flooring $2000

- kitchen $5500

- appliances with washer dryer $6000

- lights $1500

- faucets $500

- tile backsplash and shower $1500

- gutters $500

-finish package $2000

- paint $2000

- 10% over run budget of $5000

Takes you pretty close to $50K.

This one is just buying us a job but hopefully we can compound the profits into another and do a little less of the work on our own.

@John Warren

The house had a value of $275K 6 years ago but was lost to forcloser. It needs a new roof, windows and doors, and all new mechanical. Not a full guy on the inside but pretty close. Unfortunately in our area everything is pretty expensive. The $50K is also including the taxes, insurance and private money interest fees.

The only way to make this house cash flow would be to add a basement suite. It wouldn’t even break even without it. That’s where the additional costs would come from.

If you bought a $130K house in a C class neighborhood that needs 50K invested to flip for a 30K profit or $70K invested to cash flow $600 month what would you do? Keep in mind it's our first flip on our own and could possibly use the profits to BRRR a duplex. We wanted to jump in with both feet but we didn't think we wound drown in deals!

@Volker Schmid

Hi Volker,

Sorry I missed your invite. I signed up on my laptop but did not receive notifications. I have downloaded the app on my phone now so I will be on here much more. I would love to network with more local investors if the invite still stands? Thanks for now.