All Forum Posts by: Chris Purcell

Was this all new drywall? In what level of property? If this is a mid C/D unit I may let it ride and fix it the next go around....unless I can get the first guy to fix it now... which seems unlikely and I'm not sure I would let the same guy do the actual work. But if you had a bigger company do it, I would go to the contractor and tell them to fix it.

It’s a D neighborhood. But regardless I expect a standard of quality

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@Scott Kronzek

Always feed the hand that gives...

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Originally posted by @Chris Mason:

Originally posted by @Chris Purcell:

Originally posted by @Chris Mason:

Originally posted by @Chris Purcell:

Originally posted by @Chris Mason:

Originally posted by @Chris Purcell:

Originally posted by @Chris Mason:

Originally posted by @Tony Rodriguez:

Hello fellow investors,

I have made a decision to quit my 95K/YR job in January ’19 and move to do full time rehabs, I will have about 350K cash of my own and my living expenses are about $1800. I plan to buy in the Chicagoland suburbs area.

My plan is to buy single family homes/condos/townhomes in the $150-$200K range, spend about $20-40K in rehab. I plan to spend 2-4 months in each rehab to avoid any risk if the market changes.

My experience has been 2 flips, a single-family flip I did about 10 years ago and I’m about to finish rehabbing a 2 flat I purchased in 2014, I originally bought this property with the intention of renting in 2014 but about 9 months ago I decided to rehab and flip it do to the increase in value in the last couple of years.

I’m also in the process of getting my real estate license so that I can list the properties myself and my electrician license as I plan to do some of the rehab myself initially to increase my profits.

I plan to buy these properties cash and immediately refinance them so that I have enough cash on hand to buy the next property.

Do you guys think I’m I going to have issues trying refinance these properties without a regular paycheck? Does anybody know if small banks, credit unions and the like have these types of products and are pretty typical? in the worst case I would have to do a flip at a time but I would really like to do at least 2 at a time.

Thanks in advance!

Once your net rental income is 2.5x your personal housing expense, and you have no other consumer debts, and assuming you are only purchasing cashflow positive real estate, you can get a Fannie loan with "Landlord" as your job.

Alternatively there are programs that will lend based on the cashflow of the property only; the rate will be a tad higher.

Chris - how do you check for 2.5x rental income? Basically what are the requirements to that

Go to your local REIA, ask who is doing their mortgages, give all your paperwork to that gal or guy.

Yes. I’m saying as a lender - how do you verify 2.5x income? Leases? Bank statements? Tax returns? Do you have to have 2 years?

All of the above, but no do you not need two years.

What if the rental income is in your bank statements for 2018 but not on your tax returns for 217? Meaning you’ve built it up in the current year and haven’t reported current year taxes yet

Case by case basis; it has to make sense. For example if you acquired a property in September 2017 and have $120k showing on the "depreciation" line, it makes sense why you wouldn't have rental income until Feb 2018.... obviously you were gutting and redoing that property.

So if it's a newly rented property and not on PY tax returns .. you would look at leases, payment history, and bank statements to qualify

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Originally posted by @Peter Sanchez:

Originally posted by @Chris Purcell:

I'm saying in the future - to avoid imperfections like this, to inspect the walls after they are taped, spackled, and PRIMED. And then to re-apply more coats of spackle until they are perfect. I failed to inspect the walls before the painted or I could have caught this

It's not spackle you need, spackle is the stuff you use to fill small holes. You need joint compound.

And it looks like they never sanded the job. You need to sand and make sure it looks good BEFORE you prime or paint it. You're not going to be able to sand it down now. You need to hire someone to add more joint compound (mud) over it and build it up so they can sand it down and get it to look even. I repeat, you can't sand it down after it's been painted (or paint more layers over it) to get it to look right.

Sorry, meant to say joint compound. That's what he used.

But I agree - needs to be mudded and sanded then painted again. Hopefully a few coats will soften it

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@Jim K.

What blows my mind is this was flat paint

Could you imagine if it was gloss

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Originally posted by @Jim K.:

@Chris Purcell

You're setting yourself up for a painful fall if you plan on doing this yourself now. Unless you're willing to invest in this for a loss as an autonomous learning experience, get someone.

I should add that all my impish personal demons are whispering to me to tell you to just pick up some spackle at the dollar store and go for it.

Not sure where I said I was doing it myself?

I'm going to hire someone.

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@Jim K. @Thomas S.

Thanks for the replies. I will be more careful who I hire.

I was reading up last night. It looks after the spackle is fully done sanding, you can prime. After you prime, then you really inspect the walls and hit with another coat on any imperfections to avoid this.

Do you agree?

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All Forum Posts by: Chris Purcell

Chris Purcell has started 23 posts and replied 721 times.

Post: Refinancing a Duplex

Post: Is this lender legitimate? Something seems off

Post: Is this lender legitimate? Something seems off

Post: Picked the wrong Painter - how to fix tape seams and shoddy work?

Post: Wholesale referral fee?

Post: Quitting my 9-5 soon and looking for banks that refi without W2

Post: Picked the wrong Painter - how to fix tape seams and shoddy work?

Post: Picked the wrong Painter - how to fix tape seams and shoddy work?

Post: Picked the wrong Painter - how to fix tape seams and shoddy work?

Post: Picked the wrong Painter - how to fix tape seams and shoddy work?