All Forum Posts by: Adam Klugh

I am finishing up a flip in Jackson MI that will produce a nice return. My total cost of both purchase and renovation is 125k. A friend of mine who is a real estate agent in the area for 20+ years told me he thinks it will sell TOMORROW if I list it for 195k.

My apprehension about selling right now is that the Jackson market has just begun to pick up. Jackson, MI prices tend to lag behind most other urban cities and recently homes have been flying off the market at higher and higher prices. My thought is that If I rent the place for a year, I could sell for a lot more next spring/summer. Not to mention, that I don't want to pay short term capital gains taxes on that money if I sell this year. 

On the flip side (pun intended), I have a great team in place and another deal under contract. My initial plan was to use hard money lending for the first time to finance the renovation but after exploring all the fees that the lender charges I'm considering selling the place I just renovated to pay for this next one I have under contract.

So what do I do, give my money to the government in taxes or to the hard money lender in fees?

Here's the Zillow listing of the property... just because I'm so proud of the work of my team

http://www.zillow.com/homes/315-s-Wisner-jackson-mi_rb/ 

Thanks guys. I have a lotta work ahead of me if I stand a crack at this deal. Even if it isn't something that I get to move on, it will provide great inspiration to put myself through the crash course so I'm at least better prepared for the next one. I'll do some investigating and let you guys know how it goes. And thanks for the book recommendation, David. 

Do you recommend any literature that would give me a good base? I like to research the hell out of a new market before entering. So far everything I've read and studied has been about residential single and multifamilies that are less than 4 units. I never even heard of 12-24 financial before

An apartment complex went on sale in my area and I think it's a good opportunity. My problem is, I have absolute zero experience with apartment housing. So far my real estate portfolio consists of two single family homes and 1 multifamily. I sent an email asking for more info on the complex but I'm not sure what specific questions to ask other than number of units, vacancy, rental rates. Im looking for some guidance on the steps i need to take from running numbers all the way to financing and closing. I know this is a big leap from a few rental properties but its a great opportunity and i want to try my best to do what needs to be done to seize it