We set a price and sold the houses exactly as the model was shown.However; in building the spec house we are now doing, we had those same finishes planned, then buyers wanted to add a 12' sliding door, cabinets special ordered from Italy, 2 custom garage doors and front door, and other special finishes, etc.

I'm no mechanic so completely shooting from the hip here, but knowing how much a new car, depending on the model, depreciates just from driving it off the lot, combined with the thousands of dollars it costs for replacement quarter panels, bumpers, trunk or hood, individually, plus $800ish per airbag, plus thousands for the labor, it doesn't seem that impossible to me.

So I've been looking at different rehab models within my area and I think I've uncovered a niche that at first glance seems to have a lot of potential.

A bank takes over a foreclosure and does what I call "puffing" which is filling up the units fast to show occupancy to try to increase the value of the foreclosure sale.The problem is the tenants might have occupied for 30 days or so and a stable occupancy model has not been proven.

Also this is a great business model for investors, it gives them the term to fit their exit strategy and the profit margin they desire, it gives them a long term tenant that will take better care of the home because the tenant/buyer feels like it is their home.Also there are many sources to find landlords for free, and only market to those who may be interested in hearing from you.Good Luck!

Managing repairs can't be done remotely - if you look at auto dealerships as a model, they have "zone" reps to minimize the fraud and the graft - the home repair business is going to be harder to manage by a factor of ten at the least.

Although no one (myself included) wants to overpay, I can pay a little more because my business model is built around the monthly cashflow and not the home's ARV.

Hello,

Background:

-I own a duplex in Florida that I purchased for 65k cash, so the property is free and clear. I have owned it for 6 months in the name of my LLC.

-I am thinking down the road about slowly adding m...

Then you take the numbers of units and take the average rent per unit to get an income model and an exit cap you will sell at.Now figure out the cost per sq ft to construct with building requirements and finish, entry road and parking etc.

This was a trustworthy person and we had no issues.There was another time where he rented the whole structure to a lady for her to run the bed and breakfast - it's another model that didn't quite work out so well.