All Forum Posts by: Carl M.

Nuhan Demirkan You are right. I have no idea where I got to those numbers. Working too fast I guess. Your numbers make it look like a great deal! What does PITI stand for? Something, something, taxes and insurance?

Ryan Turner Every agent I spoke with says that Builders Risk will not cover liability. I am also now being told that they need a copy of the proposal from the GC which can't happen because I will need to insure the property before Istart getting official bids. Your thoughts?

Thank you so much Nuhan Demirkan I would agree with you. Another way to look at my deal is as follows: Rent: $1300 Mortgage: (634) Taxes: (200) Insurance: (66) Left over: $600 Tenants cut the grass and pay utilities. The roof is a lifetime metal roof. Heater is in great shape. Appliances will be new. If I put $400-$600 per month away for future expenses I should be in good shape.

I neglected to mention that if we flip the property the holding costs will be $4464 based on a six-month holding period. That would give us a profit of $20,851.

I'm trying to understand the 50% rule when it comes to houses that need work. I think the best thing to do would be to spell out the deal I have now and let people offer their input. I have a single family home under contract. The details are below. Purchase Price: $68,000 Purchase Costs: $ 2235 Rehab Costs: $25,000 Total Costs: $95,235 After Repair Value: $130,000 Projected Monthly Rent: $1300 Refinance $96,000 for 20 years at 5% Monthly Payment: $633.56 50% of $1300 (rent) is $650 650-633.56=$16.44 monthly cash flow Not a good deal at these projections. Now if I get a 30 year mortgage my payment will be $515.35 which gets me a monthly cash flow of $134.65. A little better but not great. I don't think a 30 year mortgage is a good idea for me because I am 47 years old and that doesn't make much sense. So am I doing this right? Based on this it seems my best exit strategy is to flip the property which is what I planned on doing in the first place with a secondary exit strategy to BRRRR this one and possibly sell it in five years. There is a chance I can get $1400 for rent but I prefer to be conservative on my estimates. Any thoughts, input, advice would be much appreciated. We have successfully flipped 9 homes and I am trying to expand my thinking when it comes to creating wealth. I would like to start creating some passive income. Thanks in advance.

Thanks @Kevin Longeuay. I listen to 2 or 3 BP podcasts per day. Good stuff. I appreciate the input. My favorite band, Switchfoot, is from San Diego. Was just thinking today that it would be a great place to vacation as well. Maybe someday!

I am signing up for an Audible 3 month free trial and am deciding which book to download first. I drive a lot so audio will work much better for me. My list of possibilities is below. Please recommend one from the list or one that is not. Thanks in advance.

• The E-Myth
• The E-Myth Real Estate Investor
• The 4-Hour Work Week
• The One Thing
• The Compound Effect
• Rich Dad Poor Dad
• Think and Grow Rich
• Eat That Frog

I am signing up for an Audible 3 month free trial and am deciding which book to download first. I drive a lot so audio will work much better for me. My list of possibilities is below. Please recommend one from the list or one that is not. Thanks in advance. 

• The E-Myth
• The E-Myth Real Estate Investor
• The 4-Hour Work Week
• The One Thing
• The Compound Effect
• Rich Dad Poor Dad
• Think and Grow Rich
• Eat That Frog

What's the difference? We have had an S Corporation for years. We have only flipped homes. Is one recommended over the other?? For flipping? For renting?

Good question. Should a general contractor that does a lot of the work himself be licensed in every trade? By this I mean electrical, plumbing etc.? I know he absolutely must have insurance but what about being licenced? I do realize that most work will have to be inspected when it's done so I'm not concerned about that. Any input would be appreciated.