All Forum Posts by: Jon Kelly

@Campus Johnson definitely check comps or leverage an agent for guidance. 

My guess is keeping the bathroom separate is more valuable to a buyer. Master bedroom people are the only ones sleeping on the first floor, so the bathroom should feel as if it's private anyway. If you close it off then your guests have to go upstairs for the bathroom.

@Matthew DeMichele you're lacking some direction. Start with the end goal in mind. What are you trying to accomplish? Are you trying to buy a single family rental? Multi-family rental? BRRRR? What price point? What return do you want to make?

Maybe you only need $25k to put 25% down on a $100k property.

@Matthew DeMichele does it really matter if you earn 2.5% or 10% on $5,000? It's a difference of $125 vs. $500... Neither will help you purchase your next property. 

You need to focus on earning more money or reducing other expenses.

@Jason V. I respect thinking about of the box a little bit to get a deal done. I had a similar mindset when I first started. I wanted the absolute best deal I could get no matter how many times I negotiated back and forth. Negotiating is key in this business. 

At the end of the day relationships are also critical. You will need people and a "team" to help make you successful. If you're constantly penny pinching it will not win in the end. Think how much time you spent "saving" $2.5k in this deal? Several hours, days, etc.? It's not worth it. Pay the professionals to help you get the deals done and move onto the next one. 

@Vaughn D. Harris I don't see any other expense assumptions except for taxes... what about insurance, vacancy, property management, repairs/maintenance, capex, etc.? 

Are you sure you add $60k in value after putting $8k into it? Seems like a stretch, unless you are getting the property severely below market.  

@Jason V. just tell the buyer "no" and find a new buyer if you strongly believe in the price. Most likely, the buyer will come up to $99k or $97.5k... any normal buyer will not walk away for $2.5k...

If you don't want to pay agent's fees then you should've listed for sale by owner. 

@Ray Martinez why did you start building if you don't know if it's worth the investment???

@James Dandiu it's certainly your agent's job to "negotiate" or explain the situation on your behalf. You hired them for a reason. Of course, the buyer's agent will try to pick apart the property or report as much as possible to drive the price down. Your agent should be standing firm and asking for an offer instead of drilling through the report with a fine-tooth comb. 

However, the market will always tell you what your property is worth. How long was the property on the market? How many other offers do you have? If you don't have any other offers you may have to be willing to listen to your only potential buyer... 

@Kyle Curtin calling it "bonus room" or "office space" is perfect. You don't want to advertise as a bedroom at this time. Most people will see the pictures online and decide if they want to use it as a bedroom or not. Usually the space is perfect for children.