All Forum Posts by: Jeremiah Purdum

Abram, nice work! Where did you flip this one? 

What was the hardest part about working with the contractors? Was it one trade or multiple?

I ask because I am a handyman/carpenter and I want to learn from other's experiences so I thought I would ask.

@Payman, in my view there is definitely a shortage of commercial/flex space in Missoula. As new ones are built they lease up fairly quickly and ones in the center of town have tennants who stay for a long time. 

i think finding an available property will be your hardest problem here in Missoula. Unless you are looking for something larger. 

id touch base with Sterling CRE as they have a great handle on the commercial/flex space here in Western Montana. And if you purchase something larger and need tenants, let me know. I have a small group if contractors who would love to sublet a portion of space.

good luck!

What @Keith Miller said. Kevin Jones is your best bet for that kind of advice. He will make sure you have everything in order so there aren't any problems. 

Meghan, 

First, im glad Keith has already responded, as he has first hand experience doing the ADU option here in Missoula. I would connect with him for sure.

Another option is to owner finance the property to an investor. This would spread out your income from the sale of the property, but i dont think it allows for any type of 1031 option. 

Ive been interested in this option for myself on the purchase side. Hoping to purchase a portfolio of someone looking to retire from SFH rentals who self manages. But I need to be more like Keith and run numbers to find something that is a win-win for both parties.

@Jonathan McKay, good luck in Missoula. You paying cash? Its a hot market right now. Put in an offer on a potential fix and flip here and was one of 28 offers, many over asking and cash. 

Bridger,

Missoulian here as well. Your rental rates seem pretty accurate to me. Though I haven't followed East Missoula vs Missoula much. My concern is your operating costs with the remodeled duplex. 

do you know anything about that remodel? Old home remodels can be done really well (everything inside the walls is upgraded) or new drywall could cover up years of hassle for you. Just something to consider. Maybe increase your operating expenses (which seam low) to make sure it still "pencils" for you. 

as a house hack it sounds very interesting. Those are my two cents for now.

Depending on your specialty buying flips that have foundation issues might be your sweet spot. Those kind of problems scare most people off, but knowing most of those issues aren't that scary you could have an advantage.

In these neck of the woods with the housing market as it is, being able to get a discount and knowing the process and costs associated with that type of fix might help you make it work.

I think it is hard for the numbers to work here in Missoula. If you work hard enough at it I'm sure you can find some decent deals out there, but so far the price points I've found and the repair costs and ARV don't leave much room for a fix in flip to pencil.

That being said, I haven't been looking as much recently, building my own residence, as well as starting my handyman business have taken most of my time and $. I'm going to be looking for a fix and flip or BRRR in the next 6 to 12 months, but I think it will take a lot of research and knowing your numbers. I'll be doing most of the work myself and have a friends in the contracting space to rely on. Finding the deals in Missoula is where I think the money is made.

I would suggest asking the remediation company to test clean a few areas. I've heard that sometimes units are painted over and so there is residual amounts that need to be remediated but when the crews start cleaning the levels get worse and it becomes a full gut instead of just a cleaning. Might save the cost of the crew coming in and trying to salvage the drywall before the gut. 

Shoot, I love the meetups but will be on vacation getting away from the snow for a little bit. 

My goals are to get my handyman business up and running to give me the flexibility to BRRRR or flip if the opportunity comes up.

Almost finished building my house. That's been all I've had time and attention for during the last 6 months. 

Enjoy the meetup!