All Forum Posts by: Tyler L.

I've found a few triplex's in my area that make for great house hacks. I just got off the phone with my lender, and he said that FHA loans are generally difficult to do for 3 and 4 units, because the other units rental income (75% of actual income) need to cover the entire mortgage. He also said that very few banks give owner occupied loans on triplexes, so FHA is the only option already.

I’ve never come across this rule before. Is that all there is to it? Most of the properties I’ve looked at have had the other units cover the mortgage, but not when they make the 75% adjustment. 

I should clarify-I work for a home materials supplier (flooring, toilets, tubs, tiles, the whole thing) and am able to get most of the materials at wholesale price, so that's able to cut down on cost by quite a bit. 

I'm saying moderate compared to full gut jobs, roof caving in, condemned, etc. 

Budget would be $35K. 

Hi all,

My partners and I just got a house under contract yesterday in Worcester, MA, and am looking for general contractors. This is a moderately extensive flip, new kitchen, 2 new bathrooms, carpet replaced with laminate, wallpaper removed and either replaced or walls painted, and the works. 

If anyone knows of anyone free to take on a project, please let me know!

Partner and I found a very promising flip thay we'd want to make an offer on. House is listed for $99K, contractors are ballparking $75-100K in repairs, ARV is in the $300K range. This would be our first flip, we would have a contractor who works with investors and flippers handle all the work, but this seems like it may be out of our league. It's a 1400 SF 2br/1ba home in a B class neighborhood.

Major items:

New roof

New Siding (entire house)

Deleading

New Windows

Remodeled bathroom

Remodeled kitchen

New HVAC

Rewiring house

Smaller items:

Large drywall patching

New bedroom from existing space

Refinishing floors

All new paint interior/exterior

No termites or foundation issues, luckily.

In terms of general condition, the dining room (which will be turned into a bedroom) and living room just need some touching up, bedrooms bathrooms and kitchen need moderate work, and the entryway, hallways, and exterior all look to be out of the 7th circle of hell.

This seems to be a massive job, but in this age/location it’s hard to find good deals (as everyone is aware). Because of it’s condition, it would be a lot easier to get this house for a price that makes sense.

Does this seem like too much for two newbies who use an experienced contractor?

Looking over my marketing numbers and trying to budget for second half of 2019. What’s everyones average marketing budget to acquire one rehab deal? How long does it take for you guys from first contact to close? What methods prove the best for you?

This is the kind of deal that gives people in pricey markets hope! Congratulations Kelsi!

@John Moorhouse 90% of the people here hated high school. DO. NOT. DROP. OUT. You need money for real estate investing. Moreso-you need income. There are very few places where paying with cash is better than borrowing from a bank. Banks want to lend to people who will pay them back. That means income. To have income, you need a job. Look at all the jobs that will accept a 10th grade education. Now look at what they pay. Find me any job with a 10th grade education requirement that will make a bank comfortable enough to loan you money. If you really are serious, spend your summers interning and learning about investing. Get through the last two years-we all did. That way, by the time you’re ready to invest, you’ll have the income to do it. There’s no situation where 30 year old you doesn’t regret this.

Open carry, in my opinion, is never a good idea. Tons of people will be turned off/intimidated by it. 

Despite what the media says, your odds of becoming a victim of a violent crime are extremely small unless your a drug addict or gang member. It's not zero, but it's small. Now out of that small percentage, there's an even smaller percentage where the extra 1/10th of a second you get by carrying open makes a difference. Those odds are so small, it's just not worth the extra business you can lose. 

Would you stop driving because of the odds of getting in a car accident? Absolutely not, you'd lose tons of business by not being able to get places. But you're massively more likely to get in a car accident than be in a position where open carry would've made a difference over concealed. 

Whether or not you decide to carry is your own decision, but the real secret is to do everything you can to avoid a situation where you would ever need it. This means placing quality tenants, avoiding excessive displays of wealth in poorer areas, and most importantly, not getting involved in things unnecessarily. If you expect trouble, see if the local police will escort you, or do the job for you (in the event of evictions). If they won't, and you really do expect trouble, it would be worth it to pay some off duty cop to escort you, or if you don't want to spare that kind of money, a local bouncer. Shoot, you can always bring a big dog with you if you have one. 

Will this eliminate your chances of being a victim? No, especially if you invest in lower income areas or rehab vacant houses where squatters swarm to. But you can avoid all but random attacks by just using your brain and sticking to sound principles. 

@John Paul Whaley like others have said, it depends on the area. The areas that do the best in recessions are those that have a diversified economy. Areas like Vegas (gambling), Florida (tourism), and Detroit (manufacturing) fared the worst in the last recession, and I predict will do the same in the next one. The best example of this effect is Texas. Texas seriously suffered in the 80’s recession because their economy was extremely heavy in oil. By the time 2008 came around, Texas had diversified, and fared better than most other states.