All Forum Posts by: Janelle Hicks

I work 30 hours a week at an excellent, well paying job that covers up to $5k/semester in tuition reimbursement. My background is in science, and although I voraciously read/research specific questions, I feel I am missing some overall background understanding of how to run a business. I have been investing in real estate on the side the past year or so and it has been going very well (2 short term rentals, net profits $1-2k/month each currently). Within roughly 5 years my goal would be to start a real estate investment business (maybe with my Dad). My current rentals are a business already I suppose, but to be honest I feel I may have just lucked/guessed my way into them. I have certainly learned a lot. So the goal would be a more structured/cohesive investment model.  I have minimal education in finance/accounting/operations etc, which is why I feel that an MBA might fill in the gaps in my knowledge. Plus, as stated before, my current company will pay for me to get the degree, as long as I finish within the next 2 years. So in many ways, it is just the time commitment that concerns me. If I am going to invest the time and effort to learn these things, I like the idea of getting credit for it. I am considering a cheaper AACSB accredited school (MBA with emphasis on entrepreneurship, perhaps), so the personal cost to me would be free except for the time commitment. The MBA itself would likely not be beneficial at my current role, but it might open doors in the future. Can anyone tell me whether it would be worth the time commitment to you, if it was mostly just to achieve your personal goals (achieving an overall understanding of how to create and run a business/basic accounting, finance, systems/operations), as opposed to climbing the corporate ladder? 

Hi I'm in Carlsbad, NM. I'm not sure where you are looking but there ought to be some fairly nice options for under 350k, unless you are looking for a very large or very new build home. Did you look into the La Huerta neighborhood? Or the farther out from town itself the lots get larger and the prices go down. 

I'm just chiming in to say Hi and ask how it's been going? I too am located in Carlsbad NM. I have bought 3 homes here, one a primary and two I bought and sort of BRRR'd into airbnbs. They have been doing quite well for me. I am a little nervous about the poor stock market/oil prices but I think oil/gas in this area is projected to continue at least another 10 years. Working in the industry I know that new drilling is ongoing and leases are being taken out for 20 years. Besides that there is the WIPP side, potential for alternative energy, and tourism so I'm feeling good about the economic growth in this region. Just wondering if there is anyone else out here?

So far so good in New Mexico.most people drive here so bookings have been pretty normal for this time of year.

Definitely understand it shouldn't be done piecemeal. I could take out a HELOC on my private home for a portion...maybe also a loan...but I think it would still be short of the necessary funds. I think I'm gonna look for a partner.

I wouldn't say I'm an expert. The project definitely scares me, I have done 2 houses ( now rentals) so far. But...there is a 5 Plex around the corner asking 550 right now. The other thing is I don't have the 200k in cash it would take to fix it...I could buy it ( seller financed) and fix the house in front, then use monthly income ( plus money from my other 2) to gradually do the big 8 Plex on back.

At what point is a property too far gone to rehab? 
I found an 9 Plex, fixed up it could be worth about 400k based on income valuation. But it needs EVERYTHING. Place is a dumpy/disgusting, been vandalized, no floors, bad roof/ birds got in, kitchens barely exist, full bathroom reno,  needs all new plumbing and electric, new roof, new windows, all appliances, obviously paint / fixtures/ doors etc. Only thing it really has going for it is sturdy plaster/ structural integrity. Honestly I'm sort of surprised it hasn't been torn down ( except that's gotta be expensive as hell). How do you figure a rehab cost for that?  I figured easily over 100k just to make it habitable...but how much over? How do you determine if a building is Worth saving? 

Hi I am a lead on an 8 Plex (1 bedrooms) plus a 2/1 house. Could rent in my area for conservatively $800 the 1 beds, $1200 the house, or much more as Airbnb units. Seller financed, asking $25k down on $200k. This would be a screaming good deal in my mind except all the units need new plumbing, electric, new appliances, new cabinets, paint and some other lesser updates. I have done 2 deals, both currently making excellent income as Airbnbs ($1-2k/ month net), both I did pretty intensive renovations on (well I paid someone, modified brrr). I could come up with the down payment and enough money to fix one or two of the units right now. My plan was to fix a couple, rent those out, and put income towards the next unit etc til they are all updated. If necessary I could sell one of my other rentals or HELOC on my private home. From what I understand eventually I could refinance into a commercial loan. Basically I want to know if it honestly sounds like I'd be getting in over my head? Is it crazy to consider this? Flaws in my plan? Any advice for me?

So i recently realized a house I purchased came with an extra, already subdivided lot, that I can sell separately. It is a small lot, but lots sell well in my area. The cheapest other one in town is 20k, but it is larger than mine. We listed it for 17k, my realtor said to expect to get anywhere between 10-14k, minus closing fees of $3500. It was listed Tuesday, today (Friday) we got an all-cash offer, quick close for 10k. Our realtor said she thinks it's a good offer and does not think the buyer will want to go higher due to the small size of the lot.

I guess my question is with these kinds of things, is it best to accept the first offer? Better to counter? Better to wait and see if something better comes? I haven't ever sold property before, other than our home. I sort of want to counter at 12k just because I don't want to just accept the first offer. But seeing as this land is just sort of an unexpected bonus to an already good deal, I don't really have a target for what I want to make on the deal, and quick and easy sounds great right now when I have lots of outstanding debts from the rehab of the house.

Is there a good mathematical way to decide? Rule of thumb?

You mean 75/25 in my favor? Even though he is bringing most of the cash? It is my brother so I definitely want to keep things fair between us, and hopefully he will want to do another one down the line.