All Forum Posts by: Daniel Kramer

Awesome, thanks everyone!

@Edwin Martinez Finding and analyzing is my favorite aspect of rei. I'd be happy to give you some feedback on the area especially with insight to neighborhoods and schools. If just for the practice and feedback, I'd be happy to do that... I already have a ton scoped out myself trying to land my first deal, so it's not like I'm a big time investor handing out finder's fees for finding deals.

Thanks & look forward to it.

Dan

A duplex I am looking at is currently occupied with two month-to-month tenants. I've read a lot about inheriting tenants, but nothing about inheriting month-to-month tenants. I'm not sure why, if they are both currently looking at buying houses or if the current owner was nice enough to give them an out if they don't like the new landord... No idea. What are some advantages or disadvantages of this situation? Would you try to get them on a 12-month lease after the first month or let them roll with their current situation? I want to be firm in getting things straight from the beginning but I also don't want to eat vacancy right off the bat.

Thanks!

Awesome, thanks everyone for your helpful responses!

There is a brick triplex around the corner from my primary residence, great location and curb appeal. Out of curiosity, I looked up the public records and discovered the owner has had it since at least 1992, so he likely owns it outright or very close. I am planning to write a letter to his mailing address as a friendly introduction and asking him to keep me in mind if he ever wants to sell. Getting way too ahead of myself, I think it would be a great opportunity for seller financing. Obviously, I want to build a relationship first, but if you were the seller, what terms or structure of seller financing would convince you to go that "riskier" route as opposed to taking the cash from a bank financed deal? Also, assume you're approaching retirement. How much down, how long, interest rate, etc.

Thanks!

@Shahbaz Qavi Many homes in the Toledo area, including my personal home, were built in the 20's. Someone else nailed it - check electrical (knob & tube) and plumbing (cast), but also don't consider it a deal breaker. In that portfolio, some probably are and some aren't. Add it to your planned capital expenses to be depreciated. If you have opportunities where you're planning to tear up anyways, update the electrical and plumbing while everything is opened up. To add to it, once you get the knob and tube out, you can insulate your walls and your unit is now more efficient.

Also, since those houses were likely painted and repainted over the years, there is likely to be lead so be careful during any renovations that you or your contractors are taking precautions to the the job safely.

Dan

@J Scott I am 100% new, so I'm still emphatically reading forums, listening to podcasts, doing pretend calculations on properties in my area. So to say I'm good at managing contractors or not is still an imaginary concept.

I have been building some Excel models for fun even though I know BP has tools and calculators. I actually use them as models but I like understanding the equations behind them and writing them out on my own for fun.

That said, I stumbled upon a stat that the average flip, nationwide, was 182 days in 2017, which included selling time. That stat grabbed my attention. So maybe if you're running a well oiled machine, 8 weeks is normal, which is great. And that's obviously a variable, too... experience.

My goal was to create a simple (obviously imperfect) rule of thumb for quick pre-sale calculations. So we have the 70% rule, right? 0.7*ARV-rehab = max offer, which still has limitations but it's a tool. Similarly, if I walk through a house quickly and ballpark $60k off the cuff, can I plug that into a quick calculation that also spits out holding costs (time dependent) with only a few quick inputs.

@J Scott Thanks, I appreciate the feedback. I'll check out the sample you referenced. I understand the uniqueness of time and money for different activities. My goal is/was to come up with a quick calculator for a pre-screening type of tool as I'm sitting through leads. Creating a project timeline for every potential lead would take a lot of time.

Thanks again, I do appreciate it. Clearly not getting much feedback 😁 I assume most people who do have historical data use it for their own projections and estimating.

Dan

I am a beginner and attempting to set up some cost models for fix & flip properties. I am aware of the many costs, including holding costs. However, my roadblock is in determining the timeline. I am wondering if any experienced professionals have data (20+ datapoints) as to cost and time to sale on each of their properties. I know there will be a plethora of examples, opinions, exceptions and objections to the vagueness, but this is purely for a simplistic model and I am curious to see if there is some correlation. 

That way, if I walk through a house and estimate the cost of a rehab, I can also have the model return back this vague time-to-sale number and estimate my holding costs. 

Thanks! 

Dan

@Andrew Fidler Thanks so much for the warm welcome and information. I think we have a conflict February 5 but I am definitely interested. Believe me, I'm listening to podcasts, reading every spare second and then some.

Again, thanks so much!

Dan