All Forum Posts by: Steve Cady

I have been using my HELOC from my primary residence to buy my flips for "cash". It gives me an edge over other potential buyers who's offers rely on financing. In some cases, you don't even need to be the highest offer since you are often the strongest.

I getting close to finishing up the rehab on my first flip.  So far I am within budget except possibly for one thing.  The driveway is in desperate need of repair to the point where patching may not be an option.  My question is do I spend the money to replace it not knowing if I will be able to recover that money or do I give it a new coat of blacktop and use that as a negotiating item with a potential buyer.  Knowing the estimate to replace it, as long as don't have to drop the price as much as the replacement would cost, I consider that coming out ahead.

Not looking for official legal advise but wanted to know if anyone has run into this before.  I work a standard 9-5 which is what my child support to my ex is based on.  How does flipping houses play into that.  Does anyone know if that capitol gains money could be interpreted as income as it pertains to child support.  Has anyone experience an increase in their child support based on money they made flipping?  I'm not trying to dodge anything.  I'm just wondering what I can expect.  Thanks in advance for the comments!

Thanks everyone!

Thanks Clayton!  Glad to know I'm on the right track.

I am finally getting over my analysis paralysis and ready to start my journey. Ultimately, my goal is to build up a portfolio of buy and holds to generate enough cash flow to live on but as long as I’m working, I don’t need any cash flow right now. I wanted to get people’s opinion on my strategy on how I am planning on doing it.

I am in the process of getting a HELOC on my primary residence. My plan is to use that money to purchase a fix and flip for "cash". Initially, I will only look at properties where the HELOC is enough to cover 100% of the purchase, repair, holding costs, etc. Once that is property is finished and sold, I plan on paying off the HELOC, saving 100% of the profit on that sale and repeating the process until I have enough saved to purchase a buy and hold rental property. My hope is to keep that process going (HELOC for flips, profits for buy and holds) until I have enough rentals cash flowing to replace my current income. At some point depending on how things go, I may slow down on purchasing the rentals so I can build up enough profit from my flips to support 2 or 3 flips running at the same time to get to my goal quicker. I am going to start off slow (maybe flipping 1-3 properties a year) until I get my feet wet but may increase that as I get more comfortable.

Does that sound like a realistic way to go?

Another question; since the money I plan on using to purchase the rental properties isn't technically out of my pocket but from the profit of the flips, how would that payment work toward the ROI/CoC/CapEx/IRR etc.? Would it be considered costing me zero of my own money or would I count that money as my investment portion into that property?

Thanks all!

@Mary Derman Thanks! I thought I was trying to but it sometimes feels like I'm moving backwards. I am working with a realtor who "knows investment properties". I believed him because he owns a few. Well, it's been months and all I get are emails with MLS listings but no real direction of suggestions from him. And when I call him about a property listing he sent me he proceeds to tell me why that one won't work.... Then why send it over to me in the first place? I guess my next action is to find a new realtor. LOL

Very cool!  Glad you guys found each other.  I am currently trying to get over the "paralysis" myself.  Other than taking on a partner, do you have any tips?

Thanks Jeff!  Since most of the seller finance deals I read about on the forum tend to involve "Ma and Pa" sellers, does that extra work for them tend to scare them away before the deal even gets off the ground?