All Forum Posts by: Sebastian Madariaga

I purchased my first property in March of 2016 in Kansas City, MO that needed cosmetic updates. I would determine what you would feel comfortable in doing yourself and what you want to contract out. For me, my dad and I rehabbed the bathroom before I moved in, taking about 4-5 full days (I took a week off work to do the bathroom and electrical). This included tiling the shower and floor. Two years later, when I rehabbed the kitchen and dinning room, I contracted tiling out, not because I couldn't do it myself, but I paid someone to do it in two days, where it would have taken me probably a week while working a full time job.

I think there is a benefit in doing a rehab yourself just so you know what goes in to it. Also doing a rehab yourself allows you to learn the skills to do things yourself in your own home.

Thanks for sharing your story Brian! I love how you did the rehab yourself then your next project you contracted out some of the work. I'm thinking thats probably the best route, like you said about gaining the skills on the rehab but also determining what you feel comfortable doing vs contracting out. Im hoping doing it myself will help me save up some capital so I can get into my 2nd deal quicker.

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Originally posted by @Jacob Sampson:

Are you able to do the work and do you have the time? Do you have a spouse or kids that will have to live in the place while it is remodeled? Also what is your long term goal? If it is to get a personal residence on the cheap and you are able to do the work then I would go that route. If you are trying to build an empire that might be a different story.

Thanks for your input Jacob! I feel I'd be able to do most of the work, but would contract out big projects if needed. No kids in the house, which I feel would make it a little easier. My long term goal is to acquire many residential properties, single and multi, that will allow me to do it full time and leave my current job.

As of right now, I don't have the capital to rehab a home all at once while paying rent on a place to live, so figured my first couple properties I'd live in them and slowly update to make them rent ready. I feel once I have extra cash flow coming in, I'd be able to just contract everything out and focus more on obtaining more deals.

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Hope everyone’s doing well today!!

When first starting out, let’s say you get a property that needs updated but no major repairs and ya plan on living in the property....Would you suggest contracting out or doing the work yourself?

Would love to hear some good/bad experiences :)

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Originally posted by @Mark Durham:

@Sebastian Madariaga,

I second JC's suggestion. It's cleaner than a Wrap.

Thank you so much for your input Mark!

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Originally posted by @JC McClain:

Congratulations on your first post :)
You could finance the portion that he has a mortgage on with a conventional mortgage and he could hold a second mortgage for the equity that he has. That would create

Thank you so much for the response JC!!

Just to be clear, so say he owes 90k on the place and he wants 200k for it. You're saying get a conventional loan for 90k then have him hold the other 110k?

Thanks again for the help!

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Hello BP!

This is finally my first post!!! I’m working on locking down my first deal. My current landlord is looking to sell me his home through seller finance. His main reason for holding the mortgage is because he would like to continue having passive income.

I found out he still owes some on his mortgage, so I’m afraid he may not be able to do seller finance. ((Hopefully he still can with a wraparound mortgage))

Does anyone have any other suggestions on a type of financing that could be used so that he still would be able to collect passive income?

I’ve been pre-approved for a convention mortgage but feel I can get a better deal on the property if I can find a way to provide passive income to the landlord.

Any suggestions would be much appreciated!! Hope everyone has a great day!

-Sebastian

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All Forum Posts by: Sebastian Madariaga

Sebastian Madariaga has started 7 posts and replied 16 times.

Post: DIY or Contract out ?

Post: DIY or Contract out ?

Post: DIY or Contract out ?

Post: Seller Finance Options

Post: Seller Finance Options

Post: Seller Finance Options