All Forum Posts by: Patrick Cruse

@brian pulaski thanks for the insight. Do you have an opinion on wood/laminate flooring throughout? I know it would look better and might attract better rents. I'm just wondering how much more durable it is than carpet and if it will pay dividends in the long run to spend extra up front for what it costs compared to carpet? Is there another type of flooring  that might be a better alternative than either of those options?

Thanks again,

Patrick

I am considering offering on a property that is being offered by a wholesaler. This property would be a buy and hold rental. 

Some numbers that I have come up with that I think will make it meet my criteria for being a possible deal are as follows:

Asking price: 37,500

ARV: 68,000

Rent: $800

Cash flow: $378/month

If I can keep the rehab costs under $15,000 I think it will make my all-in price at enough of a discount that I can make the deal work. 

All of these number are conservative estimates and it gives me a 22.79% discount on a buy and hold property. I plan on doing the BRRRR method and I know that doesn't reach the 30% threshold, but I am comfortable with it.

What I am not comfortable with is estimating the cost of rehab. I would like to fix it up nice enough that it will last a long time, because I plan on holding it possibly forever. It is a small house (952 sq ft) with 3 bedrooms and 1 bathroom. I would like to do wood/laminate flooring throughout and granite counter tops as I think those would last the longest and not have to be changed every time a tenant changes. I think it would also give me a leg up on the competition to keep this house rented consistently. Is this crazy to do in a house that only has an ARV of 68,000?

I am very much a novice when it comes to estimating rehab (I just got J. Scott's book in the mail yesterday, but won't have time to master it before this deal). 

I'd like any and all help with pointing out stuff I don't realize will need rehabbed and help with estimating how much this house will take to get in great shape.

I have included a dropbox link of the pictures I took today. I took lots of pictures, because I wasn't even sure what was important to have pictures of.  If you want more detail check out the pics too. 

Can this house be rehabbed for < $15,000??

Thanks in advance for any help,

Patrick Cruse

Fwiw, I am willing to help with work, but wouldn't be much help with anything other than standard appliance installation and demolition. Most if not all of this work I plan on contracting out. This property is in Indianapolis, IN if that helps with rehab estimates. 

https://www.dropbox.com/sh/i69tvjcr50m5vq8/AACrysr...

@Jay Hinrichs Do you have a method for determining what qualifies certain neighborhoods to be graded as you describe? What makes something a B vs C- area?

Thanks,

Patrick

@Carlos Altamirano I'd love to find out more info on your 6 unit property. How do check out what you have? 

Thanks,

Patrick

@Kevin Farrell I'd love to network that way. How do I find out the times, dates, and locations of these meetings? Does that mean you are a member at Broadmoor CC or just meet there? If you're a member we might know some of the sameness people. 

@Larry Fried Thanks! I've told lots of friends and family that I plan on doing to REI now that I am in the Indy area. Invariably, one of the first questions they always ask is "How is the market there?". I don't really know how to answer that since I don't have much to compare it to. I was only a home owner in Vegas and not an investor. Indy seems good to me, because it seems like it is pretty realistic to get cash flowing properties. What are the reasons you say Indy is a good place to be for REI?

My first (of hopefully many) Bigger Pockets posts!

I just moved from Las Vegas to Noblesville, Indiana with my wife and two young children about a month ago. I was a professional poker player for the last 11 years. I made a little over $100,000 in cash from the sale of my primary residence in Las Vegas. Once we find the neighborhood and school district we want to settle in around here we intend to buy another primary residence. I don't plan on using all of that money for a down payment though. I want to use the BRRRR method to acquire as many assets (Rich Dad Poor Dad style) in the form of Single Family Rentals as a I can. I have been reading/studying as much about real estate investing as possible for the last few months.

I want to build my trusted team asap and begin investing right away. I want to make sure I don’t suffer from analysis paralysis and I am looking forward to learning more on the fly as I begin investing. It would be challenging for me to find deals on my own without connections or a system yet put in place to make this happen.

I would love to find an agent that also invests, a tax guy, some wholesale connections, contracting leads, and anyone else that thinks they would benefit from helping me begin investing in real estate.

I intend to buy 10 or more properties in the next couple of years so hopefully I will be a quality asset to these people as well.

It's been a while since I have felt passionate about wanting to learn something like I am about real estate and it feels good. I would love to hear any other suggestions to speed up my learning curve.

Thanks for your time,

Patrick Cruse