All Forum Posts by: Scott W.

gotta spend $ to make $. you may have spent a lot now but you will go months/years with minimal expenses. plus, seems you are asking, and getting, $200/month more in rent. that's awesome! 

your margins look good so why are you beating yourself up?

this is not true. there are conventional loans for flips from banks. they do them! most are about 75% of the purchase price. I got one that does 75% of the purchase and the rehab up to $200k.

but they prolly won't lend to a newb.

Ramsey is correct about personal debt but he would have a problem with tapping your equity for investment.

I don't though!

man you got a lot of equity in your own home!

how did you only pay  $300/month in interest?  Did you use mostly savings to pay for this? Even with super low heloc rates, at over 100k in loans, it'd be more than that, at least it is for me and my heloc.

whatever you paid for it at the the sheriff sale is what you owe. now the previous owner will pay more as there were more costs from when the sale took place until you (the new oner confirmed it).

bottom line, you only owe what it sold for at auction. if there are surviving liens (like a mechanic's lien or any outstanding water bill), then you would most likely owe that.  you obviously still owe for property taxes as you do not get a credit from the bank.

It doesn't really show your holding costs? interest? property taxes & insurance/water/electric? or is that all lumped into your rehab? how many hours of labor would you say you put into the project?

correct, leverage does boost returns on real estate. but, stocks (in a roth or traditional ira/401k) does have compound interest (Einstein called it his greatest discovery) and with a lot less stress and zippo debt.

pros and cons to everything. 

If you have equity in your primary and/or rentals, a heloc is great. Yoir own cash is cheapest but less if a return. Private  $ can be cheap too and you should be able to deduct it from your flip but its hard to get a firend or family to invest in you.

that's crazy you can get all of that done in 2 months. did you pull permits? I have a 70k rehab right now and am now in month 5 of the rehab; and it's only 1200 sq foot ranch w/ a detached 2 car garage.