All Forum Posts by: Adam Bartomeo

Alexander,

J Scott is right. I don't even use the sq ft method for a rough estimate. I tried this with evaluating a few house and could tell just from pictures on line that this method doesn't work.

I have a master list with generic pricing in it to help with this. 

The main process that I use is purchase price and ARV. Subtract them and what you need to make at a minimum and it gives your max budget for rehab (rough estimate because you still have a lot of other expenses but it is quick) If I only have a rehab cost of $2k it is a loser, if it is $40k it is a possible winner.

Florida or Hawaii. Florida - one of the top states for population growth and foreign real estate investment.

Hawaii - No explaination needed.

I guess it depends on what you mean by put in. Do you me your own money or total monies?

My most recent flip was purchased at $42k, I put in $9k, and will sell it for $125k. So almost 3x's. Any questions?

Welcome Parker! I'll PM you so we can network.

Good for you! I am working towards the same goal. I had a few generous individuals on BP reach out to me to help guide me. I am still in the research mode but at least I know I have a couple of people to bounce idea off of.

There are two ways to invest with the least amount of risk.

1. Buy with cash. The property will always cash flow and if you hold the property you don't have to worry about market swings.

2. Don't put any money in the deal. You cannot lose what you didn't put in.

To put $0 in and have the property cash flow is a great feat and not easily done. I don't think that you added in all of the expenses though. I don't know if you took into account for maintenance, taxes, insurance and vacancy.

Yes, you can raise the rents at every lease period. the question is if your market can sustain the higher rents. Your PM should be able to clairify this for you.

I would sell the condo, rent the house and find a new place to live.

You didn't do your research on the condo as a rental when you bought it. Therefore, it is not a good investment property and probably won't be. Condo's are not usually good rentals.

You did your research on the house and therefore have a good rental.

Find another place to live, do the research, and when you are ready to move you can rent that one.

You HAVE to find the right ones. I have been to good, great and scam seminars. A rule of thumb is you get what you pay for. Every free seminar that I have been to has been a scam or high pressure sales. Everyone that I have paid for has been legitimate, some better then others, and some not so good.

You have to educate yourself and network with like minded people. Seminars are a way to do both. 

Ahhh... The joys of tenant relations. I often listen to the tenants worries and often feel bad for them and their struggles. I have often made exceptions to my standards and I have often been taken advantage of. I allowed my first tenant to be late on a payment after two months of renting without paying a late fee. They were late 6 out of the next 10 months. Upon signing of the new lease I enforced the late fee's.

Today, I sympathize and empathize with the tenants but I no longer make exceptions to my standards. I find that it is easier to explain the rules and enforce the rules if you make your tenants follow the rules. The tenants understand the rules and will follow them much closer.

Its all negotiable. You would have to understand the person you are borrowing from and you need to understand your goals. On my flips I give my family 2 offers, 1. buy into the deal and get a portion of the profits, no guarantees or 2. I borrow the money for 6 months and pay 10% (APR of 20%) and I personally guaranty the loan (I ONLY do this for family). Most of my family is conservative and goes with the guarantee but a couple have bought in.

If it was a buy and hold then you would want to structure a long term loan but you could still use the same premise as above.

Beware and aware that people love options but too many cause analysis paralysis. 2 or 3 options is best