All Forum Posts by: William S.

What happens if I complete some of the tasks listed on the construction draw under general contractors responsibility? Does that free up money so to speak use elsewhere on the house or would it somehow be a bad thing? Examples:  general landscape, cut down trees, haul/dispose of trash, hang drywall ect...

So like the title says, we agreed on a closing price, and got an executed contract to the bank. While bank and the lawyers are taking their dandy time, my realtor calls me to say the sell's agent found and fixed a small leak under the kitchen sink. I said thanks for letting me know and to proceed with the closing. My thinking is, get a closing date and demand a final walk through with a general contractor prior to signing. They will either find nothing, as the realtors are both saying, or they will find reason to investigate further or some obvious damage from water leaking in an unoccupied house.

My question is, what's the best way to handle this? It feels like I can either brush it off and close as planned (we're gonna gut the kitchen anyway) or try to turn this into a negotiation point to try and get some money back? 

Any thoughts or similar experiences or posts out there that I can learn from? 

@Guy Gimenez yeah it’ll just be on people making over 250k p/yr

So I’m about to close on an old Victorian which has been split into 2, 2-Bedroom Units. I’m sure the answer is: it depends on your situation, finances, etc...

BUT...I’d be really curious to hear from a more strategic perspective if you all would go for cost-effectiveness and renovate both units with basically the same design elements, materials, colors, etc....

OR

Would you go out of your way to make the units different to appeal to a wider audience? Or somewhere in between with one or two major color/material difference inside but otherwise the same bulk flooring, carpeting, etc...?

I’m hoping to short term rent one and long term tenant the other. But really I think the question stands for doubling up on either approach too.

What am I missing in my thinking on this?

@Charles Biederman

I’m just starting out but would be good feet on the ground. Connect w me if you wanna swap ideas.

Between now and April 2021, what are the best steps you can suggest to get into rehab game full time? 

- I have good credit, little debt, good knowledge of my area, and have targeted several neighborhoods to begin my business. 

- I've been reading up about the BRRRR approach and am most interested in retaining ownership of my project buildings/homes after I fix them. I am open to flipping if I find a smashing deal but my market is a sellers market and I don't wanna bank on a quick flip if there are other viable approaches to consider.

- Dont have much cash on hand >$50k, don't have a ton of knowledge about the different banking/loan products out there

- in April, my company is closing and relocating and I'll be out of work and out of the 9-5 rat race. At that time, I'd like to stay quit and out of the 9-5 and be as best positioned as possible to do this full rehabbing, renting, and flipping full time. 

- I know losing my job will make me less desirable (basically unqualified for mortgage) for creditors so how can I maximize my currently good credit position to ride into 2021 with several properties, liquid cash, or some kind of loan scheme that is not tided to having a monthly pay check? After a few deals or a few years of having business records I know the credit options could open back up but how to operate in the in between there? 

- I have a few friends and family with money who I'm sure would invest 10-100k depending on my ask. How do yall use that kinda help when and if it makes sense? Partner on specific houses, private loans, co-signors? 

Rent would be 1100 per month no problem. I had already priced out 20k in repairs and improvements. My general estimates are at least 10k for the crawl space clean and insulation and probably another 15k on the roof. That’s where my math starts to fall apart cause I know constructions loans are gonna be 3-4 times the interest of the mortgage.  

So I've been eyeing this deal and finally made an offer. The building inspection uncovered that the new house foundation is just sitting on top of the old one without any stabilizing measures.The crawlspace was largely inaccessible to the inspectors, but what they saw was mold/moisture issues. A lot of the crawl space was inaccessible. The roof will need to be replaced within 5 years. A variety of damage to walls and floors which I dont mind. But my estimates and offer had not included these bigger issues. They were only asking 50k. My offer was 43k. My thinking now is to drop the offer to 10 or 15k and see what happens. 

Is there a strategy to turn this into a good investment or should I walk away? The ARV is 90K or so.

My credit is good and am hoping to take advantage of low interest mortgage. I'm not gonna be able to pull a mortagage on this place now but could low ball and pay cash. Then I'd need a construction loan to do the major projects...is it too far off base to go down this path or can someone turn me onto a different approach. I wanted to use a BRRRR approach to building rental income but I'm thinking this is not the property to start with.

Any help would be greatly apperciated. 

Alright BP Fam,

I’ve been covid-cocooning and am ready to emerge, evolve, and make some real changes toward happiness. Including not going back to my 9-5 rat race desk job. I have about a year of full pay and benefits severance package.

I found a little house for sale by executor in a cute old town nearby. I feel this town will boom in the coming months and years as cities continue to shed population.

I’m open, coachable, clever, and kind. I’m hoping for a mentor who can share their insights, or a few friendly posters who I can bounce ideas and ask for help from. I’d like to spin this year if 2020 into the one that helped me find my passion, start my business, and start rehabbing houses.

Thanks for reading. Wish me wisdom and luck...