All Forum Posts by: Brandon Eleazer

@Ryan Dossey that would be awesome. I may be looking to follow precisely that plan. Should I speak with a lender early in the process or wait until the work is finished?

@Andrew Nandee there's many details I didn't include for time's sake and sparing readers all of the additional property information. 

The neighborhood isn't great but it's located on a "stable" street with no boardedup houses and mostly long time homeowners.

My question was really to find out if other investors would do the quick flip and move on to the next one. I am focused on acquiring more rentals, but at the same time don't want to fall in love with any property just because I want more rental property. Does that make sense?

wow thanks guys I appreciate it. 

@Ryan Dossey just when I thought it was unanimous, haha....

Side note- Bigger Pockets is tremendous. I remember back in the day sometimes you had to wait for hours to receive a forum post response. But now you get many replies within minutes. It's great.

Here's another thought about buy and hold rental strategy:

Some investors view buying and holding as "tying up too much cash". But this $48k sitting a savings account would earn about $40/month. To compare, having the cash in the property (taking a Cashout refi out of the equation to make this point) the money generates $800/month - less some expenses of course and you still earn a few hundred per month. Seems like a sensible approach to investing to me.

thanks for the reply @Rolanda Eldridge 

Im not finding it too easy to make $20k with resale values under $100k. I totally agree that higher repairs could eat up some or potentially all profits on this. But on the positive side the holding costs, buying/selling costs and commissions are already factored in when determining the $10k profit. I also used fairly conservative numbers.

So you're saying that renting at $800/month is worth paying $48k total out of pocket (25k to buy and $23k to fix) ?

Hi BP,

I'm deciding whether to rehab and resale or rehab and hold for rental. Here are the details:

Single family, Purchase price $25k

Rehab costs $23k

ARV $75k

Estimated profit for flip is $10k (13.5% of ARV), or monthly rent is $800/month

I would like to make a definitive decision upfront because the improvements/scope of work will vary slightly depending on if this will be a flip or rental. 

Bottom line is it worth the effort, money and 4-5 months time to make $10k, or is it better to put less than $23k rehab (let's say $15k) to just get the property rent ready for a tenant @ $800/month? Thx

Great Q&A guys, thanks!

@Rafael Floresta thanks for the responses. TD bank is also on my list of lenders. It's not too easy to come by a HELOC on an investment property. At what point did you begin marketing for rent? I suspect this must have rented extremely quickly. Are there other rehabbed properties similar to yours or is this above average for this area?

Hey Rafael,

Nice job. This looks great. Did you post the 'before' pictures anywhere?

It looks like you would net around $27k if you sold at $120k. This is right on target if your goal was profit of 20% of ARV. Was this the ARV you had planned for when you originally purchased? How long did this take to complete?

So at this point you're looking for a lender to loan you 70% of ARV on this?

@Sean Treston

This is a popular topic in the forums so you can browse and find other posts for more advice.

I like @Jean Bolger 's idea of looking into a management company if you're uncomfortable with dealing w/tenants directly. Other than that, any solution would involve pretending to be someone other than the owner, which is generally frowned upon.

I agree that transfer tax @ 4% of fair market value is ridiculous.

I must have a skewed definition of "lowlife"... :)