Quote from @Nate Marshall: Quote from @JD Martin: Quote from @Chris Seveney: @Jay HinrichsI 100% agree - but I would bet you a nickel that what many sponsors are doing right now has 0 benefit to the funds that are in trouble or right the ship - they are just trying to stay afloat and raise money so they can live their “lifestyle” for the next few years.To the contrary I think many know it’s a lost cause but do not want to admit it / make it public as it will crush their money raising efforts on their new funds.Maybe I am wrong but my gut tells me differently This is exactly what I suspect as well.

Initially when we began we decided on things by gut because we were learning.

This is a fantastic market for first time flippers as there are endless homes built in the 2010s that require cosmetic only updates and pose less risk than full gut jobs.

I am going with my gut feeling on this one and walking away from the deal.

I trusted my instinct that J Tree values would go up.

Purchase price: $179,000 Cash invested: $15,000 Lived in the property for 1 year.Knocked down living room wall, replaced Hvac, floors and gutted and remodeled the kitchen, attic insulation, converted the living room and the dining area into rooms.

This renovation took 2.5 weeks for two guysScope of WorkDemo and gut entire kitchen, gut one bedroom, and partial gut of bathroomBuild new closet and frame out a wall to create a bedroomInstall new laminate flooring in two bedroomsInstall new subpanel and new electrical for entire apartmentNew (and some reused) cabinetsNew quartz countertopNew (but bought used) 24" rangeNew microwave and fridge (new fridge not shown in photos)New toilet, medicine cabinet and vanity light in bathroom New built-in kitchen table and chairsCost of Work (approximately)Labor $6,500Cabinets $2,000 - I bought some nice, used Ikea cabinets from Craigslist for a previous job and I had some left over.

We gutted the interior down to the cinder blocks, re-designed the unit layout to fit a more modern lifestyle.

Ideally you are exceeding the AirDNA numbers but it can be a good gut check on average rates/occupancy for that specific neighborhood, etc

Trust your gut and focus on building genuine relationships first.