All Forum Posts by: Dan Bryskin

@Trevor Lofstedt

Congrats on the property. My advice - refinish the hardwood. Much cheaper in the long run and adds value. If it is not in a bad shape, you may get away with some buffing and a fresh coat of polyurethane. If it is bad - sand & finish. We apply 3 coats of oil based poly. Having it professionally done, should cost you $1.50-$2.00 per foot. Or you can rent the equipment and do it your self and it will be $400 - $800 for equipment and supplies. New 3/4in hardwood will cost you $5-$7 a sq foot and will not last you 100+ years old wood did. Laminate is cheap, but you will be replacing it every few years. We have refinished our first floor 7 years ago and probably in another 2-3 we will need to buff and apply a coat of poly to it. Else - paint, kitchens and baths. But also you may not need to do much, market is pretty crazy. Good luck.

@Nick Ritter

Congrats wise man, you are doing well. Few thoughts: 

1. Market is hot, but there are always deals. Focus on finding a solid deal, don't worry about market timing.

2. As others have said, understand your restrictions. FHA - you are supposed to occupy the property for 12 months.

3. Frugal is wonderful, but I would not stretch MBA for more then 2-3 years. Reason being, while stretching the MBA will cost you less, as employer will pay a bigger portion of it but it will also deprive you from additional income. With MBA i'd expect you to make extra 20-40k a year. You take 7 years to complete as opposed to 2-3, you deprive your self of 4-5 years of yearning extra 20-40k or of 80-200k.

4. Don't worry about student debit. Make a minimal payments. Interest is low and tax deductible.  Your investments should make you much more money then paying student loans off. 

5. Don't wait wait for perfect deal, timing, situation etc. Get in the game as early as you can. Make sure deal is solid. Keep buying at least 1 house a year for a next few years, you may be able to retire by the time you are 30-35.

6. Consider house hacking close to work / college.

7. Be realistic. Paste your self. Real estate requires time, so is mba, so is work. Make sure you have a day to rest and some $$ budgeted to play. You want to end up on top of the world, not in psychiatric ward.

Good luck

David, if you still need a roof, pm me, I can help. Thank you, Dan Bryskin

@Spencer Herrick

2 button toggle switch is a dead give away of old knob and tube wiring. Most times you will see a partially rewired house, with the basement and parts of the first floor rewired and upstairs is not. If this is something you see-plan to replace knob & tube. Having it powered from modern wire is a fire hazard and in my neck of the woods inspectors won't let it fly. Couple suggestions: look in the attic & pull one of the outlets / switches off the wall, see what kind of wire is coming to it. Good luck.

@Stuti S.

Something to keep in mind. If you are in the city proper, and you gut 4plex to the suds, city will consider it a commercial, has to be finished to the commercial code. Adds 10's of thousands to the rehab. Just an fyi .... 

@Steve Porcello

I'd play a boarding house angle. You can play it in a few different ways. 

1. Friendly suggestion. Hey buddy, just because I like you, you may want to consider selling your place, before my contract with the department of corrections gets finalized. They are offering me a boat load of money to rent rooms to ex cons. 

2. Have a member of your team talk to the neighbor. I am Jack, Steve's partner in this deal. I was really exited about this house. But after Steve met you, he doesn't want to manage place himself, wants to turn it over to "2 strikes isn't out". I am terrified about what they can do to the property, can you please work your differences out with Steve?, and i will see to it, this place gets an excellent tenants.

@Chris Fargo

Thank you sir. Pics are in the first post. With the city, they have various programs, trick is - it is an election year. They all want a success story and a picture opportunity. Do you have a track record, bankroll and what not? If you do - go for it. If you don't - don't waste your time. Best way to get the city work is to have city approach you and invite you to participate. Jordan week of kindness is coming up. That's a great opportunity to get your name out. Build a set of steps, a deck, a roof. Partner with Habitat for Humanity. If you see a big mess, somebody cursing and the guys sweating - that's probably us. Come, say hi. If you are wearing a tool belt, I will introduce you to people. Good luck.

Deal is done, house is closed this morning. This was our first intentional flip. Here is the tale of the tape:

Address: 21xx 26th Ave N Minneapolis Minnesota.

Purchase price: $1.00

House size: about 1500 sq feet

Rehab & holding cost: $129,171

Listed: $175,000. Multiple offers on the 2nd day of the market

Sold: $191,000

Net to the seller: $176,341

Therapeutic scotch: $300

Closed: in about 4 weeks

Challenge: Nothing in the neighborhood ever sold for this much or this much per sq foot, including  new construction.

@Jay Hinrichs - what did you say about D neighborhoods? :) Stay tuned, more houses to come. We are working on the project across the street :)

@Robert Gunther

We use Revit. Before we start remodel, we have a drafter who comes in, draws as build, gets us revit files and we use it for our design process. Professional tool, not cheap, but worth every penny.  

@Jason Collins

500k - 275k=225k*10=2,250,000 So, at 10% cap, this property is worth about 2,250,000. I'd say anything under 2 mil is a good deal. Good luck