All Forum Posts by: Sean MacDonald

Hey Keith!

Welcome to BP, I'm an agent here in the Phoenix/Scottsdale area and I work with a lot of investors on fix-and-flip projects, rental properties, and off-market deals. I've also got experience with HUD foreclosures, so I'd be happy to help answer any questions or point you in the right direction.

Always happy to connect and help out anyway I can!

It's unfortunate, but last-minute changes in DSCR loan terms, like the lower LTV and unexpected fees, aren't uncommon, especially if the broker wasn't fully transparent from the start. If I were in your position, I'd first try negotiating with the lender to honor the original terms or at least reduce the extra fees, especially since you've already paid for the appraisal. If they won't budge, evaluate whether the new terms still make financial sense. If not, you might need to walk away, even though it's frustrating after the costs incurred. In the future, getting everything in writing and ensuring full transparency can help avoid these surprises.

If your tenant left the bedroom with all four walls covered in screw holes, you're looking at costs for both patching and repainting. For a 10x10 room, patching all the holes could run about $100 to $200 depending on the extent of the damage and local labor costs. Repainting the entire room would likely add another $300 to $600, so in total, you're looking at a reasonable deduction of around $400 to $800 from the security deposit. It's a good idea to get an estimate from a contractor to back up your deduction and keep everything transparent for the tenant.

 Wow! How can you manage liquidity to allow for more investing into rental properties?

Hey Diane, 

Since you're targeting properties under $75K, consider local credit unions or community banks, as they may offer more flexible loan options for smaller amounts. Portfolio lenders or private financing (HARD MONEY) also works well for the BRRR strategy, but does require more liquid cash. For markets, Topeka and Springfield, IL, are solid choices with potential for cash flow, particularly if you're considering Section 8. I have seen investors see major success in the Section 8 markets. Be sure to refine your deal analysis by focusing on cash flow, the 1% rule, and cap rates to ensure solid investment returns!

Good Luck!

 Hey there Sean, 

Given your goal of financial freedom and the large discrepancy between renting and mortgage costs, renting at $6.25k/month while investing the $1.43M in higher return assets like rental properties or the stock market could be a smarter financial move. A $12.5k mortgage is quite steep and ties up a lot of capital in a primary residence, while renting offers flexibility and allows more of your liquid assets to work toward generating wealth. With potential returns on investments, 10%+ from rentals or 7-10% from the S&P YOY. You may reach your goal of financial freedom sooner by renting and investing, rather than locking up cash in a low-LTV mortgage. Keep in mind I'm no financial expert, but that is what I have always been taught by my mentors. LET THAT MONEY WORK!

I am also curious to know what the motivation is but, Yes. A quitclaim deed should work for transferring the property from the Arizona LLC to the Minnesota LLC, especially since both LLCs are owned by the same individuals and no money is exchanged. Since it's essentially a change in the holding entity, not a sale, a quitclaim should be sufficient. I would check with a real estate attorney in both Arizona and Minnesota to make sure you're compliant with state specific requirements and to handle any potential tax implications.

Hey there Clint!

I sell properties to Flippers all over Arizona, and from my experience. Cash, Hard Money, and Private Money are king! 90% of the deals we do are fully funded by hard money or cash investors. We use a hard money lender called Capital Fund!

Hope this helps!

Hey Everyone,

I currently have a 2 bed / 2 bath townhome in the 85031 area of Glendale, just north of Grand Canyon University. We have it listed for $184,900, and it seems like it could work either as a rental or a quick cosmetic flip.

• ARV: ~$235K based on comps in the area
• Rental Potential: Estimated rents around $1,700/month
• Condition: Cosmetic updates needed but nothing major from what I can see. No pool, HOA is $235/month.
• Year Built: 1964

What do you think? Is there enough margin here for a flip, or would this be better as a long-term rental? I'd love to hear thoughts on how you’d approach this one.

Hey BP community!

I’ve been working with a lot of investors who are split between going the fix-and-flip route or holding properties for rental income. Each strategy seems to have its pros and cons, and I’m curious what the community thinks.

Do fix and flips provide faster returns, or do the long-term benefits of rental income make holding onto properties more appealing?

What are the biggest challenges you’ve faced with either strategy?

How do current market conditions influence your decision to flip or hold?

I’d love to hear some insights from the investors here. What’s worked for you, and how do you make the call between flipping or holding?