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BlogFlipping Houses3 Tips Rehabbers Overlook When Evaluating Buy-Fix-Rent Deals (With Video!)
Flipping Houses

3 Tips Rehabbers Overlook When Evaluating Buy-Fix-Rent Deals (With Video!)

Matt Faircloth
Expertise: Real Estate Investing Basics, Real Estate Deal Analysis & Advice, Mortgages & Creative Financing, Landlording & Rental Properties, Business Management, Personal Development, Flipping Houses, Commercial Real Estate
152 Articles Written
buy_flip_rent_deal

Happy Holidays to my friends on BiggerPockets! As you run around with end-of-the-year business and personal activities, I decided to shoot a quick video for you this week.

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I want to talk to you about things to look for when evaluating a Buy-Fix-Rent deal. We shot this video right after we toured a potential deal.

Remember: always run the numbers and watch out for things that will turn your tenants off!

Related: The 5 Things You Will Probably Forget When Rehabbing a House Flip

I hope these tips help you during your next walk through of a rehab project. I would love to hear from you. Let me know what you look for when evaluating your buy-fix-rent deals!

Rehabbers: Is there anything I missed? What would you add to this list? 

Leave us a comment with your best tips!

By Matt Faircloth

Matt Faircloth, Co-founder & President of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, New Jersey, is a developer and owner of commercial and residential property with a mission to “transform lives through real estate." Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to owning and managing over 370 units of residential and commercial assets throughout the east coast. DeRosa has completed over $30 million in real estate transactions involving private capital including fix and flips, single family home rentals, mixed use buildings, apartment buildings, office buildings, and tax lien investments. Matt Faircloth is the author of Raising Private Capital, has been featured on the BiggerPockets Podcast, and regularly contributes to BiggerPockets’s Facebook Live sessions and educational webinars.

    Marie Shaug Rental Property Investor from Dallas, TX
    Replied almost 5 years ago
    Great info! Thanks for sharing!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 5 years ago
    Thanks Margie! I’m glad you enjoyed. Happy Holidays!!
    Chris Chessari Investor from Bloomfield, Connecticut
    Replied almost 5 years ago
    Thanks for the post. How do you structure your fees when you buy, fix, rent for someone else?
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 5 years ago
    Hi Chris, Great question. If we are doing a turnkey deal (we buy it, fix it, rent it out) for another landlord we would sell the property based on an agreed upon Return on Investment to the investor. We could also do it based on CAP rate. .Make sense? Take care! Matt
    Derek Martin Investor & Attorney from Chicago, Illinois
    Replied almost 5 years ago
    Thank you for sharing. Great tips! So, did you get the property at auction?
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 5 years ago
    Hi Derek, Thanks for asking! The property actually got pulled from the live auction last minute and is being re-listed next week. Fingers crossed! Take care, Matt
    Chris Carollo from Western Springs, Illinois
    Replied almost 5 years ago
    Matt-Great video and a great looking block! One of the things that I also try to pay attention to is the surrounding zoning and properties. Is there commercial that shares an alley-Do they get deliveries? What times of day? Is there vacant land around and if so whats the zoning and what can be built?
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 5 years ago
    Hi Chris, I love that block – our offices are right around the corner. It’s a good example of the possibilities for the City of Trenton. Many of the neighborhoods have great properties but most are run down and in need of repair and good tenants / owners to take care of them. Great points on investigating the zoning in the area. It pays to know what is allowed around your rental! Take care, Matt
    Randall Kates from Philadelphia, PA
    Replied almost 5 years ago
    Great job Matt. It will be great networking with you at our South and Central Jersey REIA’s. Also your private money courses we took for SJREIA have helped a ton.
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 5 years ago
    Thanks Randall, I’m glad you enjoyed the article! The Webinar “How to raise Private Money in 30 Days” was alot of fun to produce. Please keep me in the loop on your progress. Take care, Matt
    Richard G. Investor from Alexandria, Virginia
    Replied almost 5 years ago
    Great post! Not sure if this will make sense or sound funny but this was the perfect BP blog for the week by you Matt. With all the holiday hustle and bustle I had time to read and watch this while I was in line at my local Post Office. Quick – Short – and to the point! I like the point you make about real estate taxes, one of the elements of PITI that must be considered with cost!! Happy Holidays!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 5 years ago
    Hi Richard, Thanks for reaching out! It’s always good to hear from you. I’m glad you liked the video. Doing a quick video was a win for me this week also, LOL. Take care! Matt
    Karen Rittenhouse Flipper/Rehabber from Greensboro, NC
    Replied almost 5 years ago
    Amazing video Matt! We don’t really relate to that property here in the south (well, sorta south – North Carlina) as we don’t run into that age property or the oil and things you discussed. However… I think this is your calling – Online training videos! You hit this one out of the park. Clean, clear, great explanations, short, to the point, fabulous location shot. This is the whole deal. Anxious to see more of these from you. 99 cents/month to subscribe to your YouTube training channel and you can give up renovating! 🙂 Happy Holidays!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 5 years ago
    Hi Karen, I appreciate the complements! I really enjoy shooting the videos, I’m glad they are coming across as a benefit to you. We will have to do lots more in 2015. Maybe I’ll get picked up an you’ll see me on HGTV one day! They need a show talking about rentals anyway, too many shows about fixing houses and nothing about landlording. Thanks and Happy Holidays. Matt
    Shawn Lepley Investor/Property Manager from Mantua, New Jersey
    Replied almost 5 years ago
    Matt, I like the video post you have been doing. They are short and to the point. Thanks again for all the posts you and Liz contribute to Bigger Pockets! It is appreciated!

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