All Forum Posts by: Jason Eyerly

Okay, I'll admit I've only read "Real Estate Rookie" so far and I have ten other BP books to binge through. I understand a lot of the loan times, requirements, credit, down payments, etc. I am in a good spot finally to invest and work as a salesperson in RE. I get super excited looking at STRs, houses in need of reno and updates on the MLS, and I feel a surge of excitement. However, the more I start looking at determining values and rehab costs and such, for some reason I'm overcome with doom and gloom of "No, there's no way I can pull this off. I'm gonna end up in financial ruin". Aside from finishing these books over what's left of the wildfire season - probably a good two or three months, what's the solution here?

Househacks make fine sense, even STRs if they're turn key, I understand the BRRRR methodology, but fixing sad houses and flipping em is what I look forward to most (aside from just being a numbers and data nerd) and yet I feel defeated before I've even started. I've even talked to hard money lenders to see their down payment requirements and such but I just feel.....like this is impossible.

I'm reading all these books on flipping and sure I can find motivated sellers, driving for dollars, mail letter campaigns, etc. Heck, even just using the MLS I can find stuff listed for sale. A quick email may find out if they want to accept lower payments if it needs reno/rehab. However, I'm doing a lot remotely (have to keep the full time job as well) so I'm wondering if I can take photos (or use listing photos) and some measurements to send it to an interior designer to get a design idea and send that to a GC prior to going under contract to get a rehab cost.

There's a lot to take in and I'm trying my best - I won't be pursuing any flips for a few more months yet (unless something really jumps at me or I actually get an answer on my hail mary contract emails) but determining the cost of repairs or modernization and finding properties that need some TLC but not major reno and estimating costs is my hurdle. For instance, it's easy to look at a property and know the walls, floors, appliances, etc all need to go and I'm looking at $60 on an ARV of $150k and working around that.

It's much harder to find a 180k ARV listed at $175k and negotiate that price down based on knocking down a wall, redoing some cabinets, and replacing some flooring. I feel like the less reno there is the tighter the margin and the harder it is to pull off. Having interior design to create images and such to show a GC will help accuracy and speed of quotes for all involved.

Thanks in advance!

 You need to know reno quotes to get under contract. You need to be under contract to get reno quotes. What comes first, the chicken or the egg?

 How do I go about getting them out there while I'm remote? We haven't signed anything or made any agreements but I didn't want to ask for a contractor to run through before I have anything under contract - I'll exhaust my contractor already. Based on what I plugged into the BiggerPockets Calculator if I wanted to profit $25,000 and there was $70k in repairs it said max allowable was $78,000 so I actually told them $65,000-$70,000.

Hello everyone,

I threw out an offer to get a property under contract. Comps are 180k and they're asking 160k but it's a motivated seller. I highlighted the landscaping needs, significant reno and rehab, and offered to get it under contract for $65k. I just spitballed a signfiicant reno cost of $60-$70k assuming it doesn't need an entire roof. However, it'll need landscaping and everything cosmetic replaced and brought into the 21st century. Popcorn ceilings scraped, new appliances, bathroom redone, I don't even have a contractor to handle this. My best bet may be wholesaling but maybe I bit off more than I could chew and uh....I'm not sure what to do next.

Built: 1972
-Asbestos? Lead?

SqFt: 1,125

Beds: 4

Bathrooms: 1.5

Location: Eutawville, SC

 Depending on how the wildfire season goes, I'll be opening an options trading account again for sure and grinding away at it. Tastytrade taught me so much years ago, it's time to get back at it. There's no other sensible form of trading in my opinion.

Holy thread jacking, batman.

Well, the problem is I don't know how to get an accurate estimate. Given that this mortgage is much lower compared to most folks, I can't imagine it'd be at a net loss otherwise there would be no rentals. I could always refinance to get the payment lower. I think the best bet honestly is to takeover the mortgage, stay there for the next few months, and then look at a heloc/cash out refi to get further REI funds out of it. HELOC is ideal because it wont' inflate the mortage payment and make a profitable rental less doable. I'm also curious to see what PriceLabs, not AirDNA say about it as a STR. At least with this approach, I can choose to sell on my own terms. However, if it's a loss of $-100 with CapEx and everything included, that's a small price for me to pay to build equity and keep my dads house. Also, it's Las Vegas. Location, location, location. Appreciation (excluding economic catastrophe) is always there and I don't worry much about losing 100k in equity overnight. Plus, if it's a long term hold c'est la vie.

 My license is long expired but I'm in the process of grinding Kaplan videos so I can restart. I've been away for ten years and BP has evolved significantly (and published a lot more) since then!