All Forum Posts by: Brayton Smith

 Chris I sent you a connect request!

BP community! I am a rookie REI and was wondering if there were any other new real estate investors that were seeking accountability partners? I would love to be an asset to anybody in the community!

Hey guys! I am a new real estate investor who has completed one (accidental) live in flip! I am in the Indianapolis/Fort Wayne indiana area! I have a goal of doing 5-10 flips this year and also acquire 1-3 rentals. I am excited to network and grow relationships with many people within the biggerpockets community as BP is the foundation of my knowledge within real estate and although I know very little they have taught me all that I know! I hope to get to know many of you and help each other gain financial freedom through real estate. God bless you guys!

Investment Info:

Single-family residence other investment in Marion.

Purchase price: $61,595
Cash invested: $11,025
Sale price: $103,500

First flip just accepted offer! This flip wa an (accidental) live in flip. Bought a home that needed some simple modernizing at a great price in a sub-par neighborhood. Lived in for 2.5 years and selling. Will be avoiding capital gains tax by living in and owning for over two years. Taking the profits to invest in building a property which I will also live in for two years and flip and the remainder of the gains will be re-invested into REO flips.

What made you interested in investing in this type of deal?

Understanding what is a good deal led me to buying a property with easily forced equity!

How did you find this deal and how did you negotiate it?

This deal was on the MLS listed at 72,000 I was able to pay 65,000 for this property.

How did you finance this deal?

FHA loan 3.5% down.

How did you add value to the deal?

Paint: $50.00
Bathroom Mirrors: $400.00
Furnace: $750.00
Upgrade Electric Box: $900.00
Washer/Dryer: $1,500.00
Refrigerator: $800.00
Dishwasher: $450.00
Nest Thermostat: $125.00
Vanity Half Bath: $400.00
Water Heater: $1,750.00
Ceiling Fans: $400.00

What was the outcome?

Offer accepted for 103,500!

Lessons learned? Challenges?

Furnace, water-heater, washer dryer all were unforeseen issues. Ensuring that you are not buying a property that will require these essential pieces was an afterthought.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Alexis Johnson, realtor in Marion, IN.

Guys, I just sold my home for a 40K profit. Thought to build, but moving south in the next two years. Recommendations on what the best route would be for housing my family over the next two years? 

Any investors in the Indianapolis area? Just getting started here about an hour north of Indy and looking to find some associates to grow with on this journey! 

Alright guys I need some advice. Do I lower my potential profit margin and go with a 4BD/2.5BA to be safe or should I be good with the 3BD/2.5BA?

I can build a 3 BR/2.5BA 1,855 sq. ft. with a 20 x 20 garage for 213K base price (plus other random fees) or I could go 4BD/2.5BA 2130 sq. ft. With a 20 x 20 garage for 230K base price (plus some other random fees) in a newly started subdivision in the nicest area of town. I got back the comps in the neighborhood and here are all of the sales since 08/2020:

4BR/2.5BA/2597 sq. ft.- 290K (two story, 27 x 25 garage)

4BR/2BA/2176 sq. ft.- 285K (ranch, 24 x 24 garage)

3BR/2.5BA/ 1836 sq. ft.-285K (two story, 32 x 21)

3BR/2BA/2143 sq. ft.- 273K (ranch, 27 x 25 garage)

This would lead me to believe that the purchase of the 3BR 2.5 BA would be the correct choice to maximize profit margin because there wasn’t a tangible difference in sales price (especially with the one that was 273K being a private sale sold before listing)

However when I go in Zillow and look at estimated value for each home it makes me a little nervous to go with a 3BR/2.5BA around the 1850 sq. ft. The values on the 3 BR/2 BA houses sold in the last 10 years are much lower.

3BR/2BA/1716 sq. ft. - 236K Zestimate (sold in 2016)

3BR/2BA/1738 sq. ft. - 240K Zestimate (sold in 2016)

3BR/2.5BA/2326 sq. ft. - 302K Zestimate

4BR/2.5BA/2478 sq. ft. - 311K Zestimate

4BR/2.5BA/2502 sq. ft. 339K Zestimate