All Forum Posts by: Hugh Ayles

@Gilbert Ross Jr

Your question is much like asking "How much is a car?"

Let me explain.  Is the car a 2 door or 4 door?  Hybrid or sporty?  Manual or automatic?  Purchased near a port of entry or inland?

In other words, to give an accurate answer, more information is needed.

Start with finding a private lender.  Then earn their trust by providing a verifiable resume of your experience as it relates to construction and real estate.

Now you have to find a property with numbers that make sense.

Even then you need to have cash for the closing costs, points due to the lender, and the monthly interest payments.

We are back into flipping houses after a 10 year layoff.  Both deals we have gotten since starting up again have come through wholesalers.

The value they have brought me is getting deals quicker.  Instead of ramping up my marketing and waiting until a deal happens, the wholesaler already has a marketing program and deals in the pipeline.

On my latest deal, the guy wholesaling the property really went the extra mile.  The owner was about to be foreclosed on.  He got that solved and found them a house where they ended up paying cash from the proceeds of the sale to us. He helped get them moved in.

And on the house he got for them, he had to help that owner solve an issue with his current house and then found him another house to move into.

Have you checked with local permitting to see what is permissable?

Your tax question is best answered by an accountant.  Too many variables involved for a simple answer on a forum.

What you need is to find an accountant, a permit expediter, possibly an architect and run your questions through them.  Expect to pay some consulting fees.  That is just the cost of doing business when you are setting up to sell a product.

@Russell Ballard Jr

I would be interested in helping you.  Send me a PM.

@JaNae Anderson

Regarding Airbnb, check out the Austin regulations before you make your first purchase.  They are trying to crack down on STRs and have set some strict guidelines.

As for a "tech place", tech has been strong here since the early 1990s.  If you count IBM and Sematech, then even earlier than that.

@Jen H.

"I am project managing my construction crew on a house flip."  That statement led most of us to believe you were GCing the project.  When you stated you were not pulling permits, we all assumed you were cutting corners as your first psot did nto indicate your scope of work.

In my experience on commercial projects, when the GC asked me to cut my price, their jobs were not run well and they were slow pay.  How did I avoid that moving forward?  If I was asked to cut my price, I declined the project.

The project you describe sounds like a good project to pass on.

As other contractors have pointed out in this thread, if you are asked to compromise your business practices, those are customers to avoid.

And I have to agree about insurance.   Unless you falsify reports to your insurance company, you cannot pick and choose which projects have insurance.  If your insurance carrier finds out you are doing this, they will drop you very quickly.

If one of your employees gets hurt on the job, the courts do not care if you have insurance or not.  You will be on the hook.

I am not a designer but I have worked as a subcontractor on a number of assisted living centers.  They always included a number of rooms that met our state code, TAS. that dictates mounting heights, grab bars, egress, etc.

I would bet that you'll need a public bathroom that meets ADA also.  Public meerly means it is available to staff and visitors.

You will definitely want to have an experienced architect involved.

@Brad Shepherd

You will be very close to the new teaching hospital.  This might be a good target market for you.

Are you familiar with how the city is treating STRs in the near future?  I believe within the next 2 years, unless it is your primary residence, they will not allow STRs.

On a side note, it seems 12th Street is a magical dividing line regarding property values.  We just sold a house on Webberville a couple of months ago.  We would have gotten 20-30k more if we were south of 12th Street.