All Forum Posts by: James Syed

@Will Barnard

Welcome to BP. 

Appreciate your input. You are right, I am not clear on tax laws. I should look into it deeper.

@Account Closed

Welcome to BP!

Excellent figures there!

Here's my take on it. 

9 months rehab time is due to 6 month market selling time and 3 months is for rehab time (for me as I am not handy at all and have to rely on others to finish the job for me). 

Regarding capital gain taxes, I have to spoken to my CPA and she had explained to me that since this is my job (that's I do for living), I am subject to different rules of capital gain tax vs someone who purchase a property low and sell highs and that is not their "primary trade". I am sorry, but I am unable to explain tax part property. I don't have a clue about SE tax.

And last part regarding the profit, I am in a very small market. for example, the median sales price in my county is $80,000, that is usually a 3 bed 2 bath. There were some houses where my net profit was $7000. 

Hope it helps.

@Calvin Beeke

Welcome to BP!

I am in a similar situation, waiting for the Seller to respond (See my post on 12 unit valuation). So, how did it go for you? Have performed your inspections? 

Also, your water and sewer expense seem to be low for a 12 unit building ($3000). I am looking at least $40-$50 a unit which makes it to about $7200. Have you checked with the water company or city on it? 

James

@Jesse Gargus-Smith

Welcome to BP!

@Brandon Sturgill is absolutely correct here. FHA is good upto 4 units. Instead of REA you need to speak to a competitive loan officer / mortgage broker.

Hope it helps.

@Justin Westmoreland

Welcome to BP!

Our average rehab took 3 months and 6 months to sell it so 9 months total flip time from purchase to sold. 

Average purchase price was $30,000 and sold price was $70,000 and our buying, selling, holding and rehab cost was $30,0000 which gives us an average of $10,000. 

Now in some markets, you would making a lot more money, but you have to invest very high as well. 

Hope it helps.

@Justin Westmoreland

Welcome to BP. 

We have flipped 5 properties. Average profit was $10,000 for us. Keep in mind, we are in a small market. 

Hope it helps.

@Jason Pride

Welcome to BP. 

Your story is fascinating. I would like to meet up sometime and share thoughts ideas. 

My bio and contact info is here. PM me. 

Thank you BP members to assist me. Will be getting a final answer on Wednesday. 

@Stephanie D.

Welcome to BP. 

First thing first, change the locks and then proceed further like damages, etc. 

Hope it helps.

@Jesse Scott

Welcome to BP. 

We always get 3 quotes for any work over $500 work (we are in a small market). We usually find contractors any where from $10 - $55 an hour depending the kind of work.

It's better idea in general to provide supplies and pay for the labor and NEVER pay anything up front unless you have no choice. 

Hope it helps.