All Forum Posts by: Brendan J.

Aaron,

I love your enthusiasm, but like John, would caution you to slow down a bit. Your general knowledge on the steps required to purchase, rehab, and sell for profit seem to be quite lacking.

I would find a steady paying job and over the next 12 months work on fixing your credit, saving some working captial, and increasing your understanding of the Real Estate Investment platform. I gurantee you that in this market, 98% of people that jump into the game with bad credit, essentially no money to work with, and not even enough experience to know that in order to "cash out and make money off rehabing" you have to SELL it, are going to get absolutely BURNED. The other 2% are simply a victim of blind luck and will surely lose their money on their 2nd deal.

I'm really not trying to be rude, but seriously, for your own financial benefit, don't do anything right now. Build your credit back, save money, and study study study...

Renting rooms out by the hour makes me think of a different line of work currently only legal in the State of NV. Do you think it's possible that it's a mixed use building?

Sorry, I just couldn't resist.

Welcome Jonathan! I wish you all the best in your quest for knowledge here on BP!

Awesome job man! I can see why you like the city! I'm in Charlotte for the weekend and its got a lot of charm.

Cody, welcome to BiggerPockets. I wish you the best of luck in your quest for wisdom.

As to your specific request, there doesn't seem to be much information to work off of. Are they selling the home for $7,500? What is the after-repair-value? How much rehab does it need to be rentable? What could you rent it for? Will it be conventional financing, cash, or seller financed?

Thanks guys. That's great to see.

Certainly a renovation of this magnitude and scope is typically viewed in a negative light by most investors. It is my understanding however that it isn't really because of the difficulty in finding a buyer, but rather in estimating the costs correctly. A $40k foundation job could easily become a $60k job if the unexpected arises. Making sure you don't get cash-strapped is the major problem, not necessarily finding someone to take it off your hands when you are finished.

David,

To piggy back off Jon, when you talk about the rise in home values over a period of time as it relates to equity, its called appreciation. The rise in costs over a period of time for comparable items (gallon of milk, eggs, bread, gas, etc) is called inflation. They are two separate animals and most investors here will probably assume that appreciation keeps up with inflation over a long period of time. A fair estimate would be 3% per year.

So in your example, 181k might seem much better than 100k, but if you can only buy the same number of eggs, milk, bread, and gas as before, have you actually increased your buying power at all? Probably not.

Mike, great points to remember.

J, I hope you can get that "Leak House" closed soon. I'm excited to see what you guy's do with it.

Sam,

+1 for the name. It has a good quality sound to it.