All Forum Posts by: Justin Denham

Thank you!

Hi all, a friend of mine had a parent who passed away. Following probate, the property was left to her and her brother. She would like to partner with me and flip the home, but her brother just wants his money and be done with it. He has agreed to let me buy him out of his half of the property for $60,000 and he will then quit claim his half to me. How should I or would you, structure the documentation for this deal? I’m not sure if I should use my normal contract, then have him and her quit claim the property to a trust or if he would only quick claim his portion of the deed. She is not selling her portion and does not want to be liable for the taxes on his portion of the sale. Any wise words would be appreciated.

Could you imagine a $100,000 investment with $3250/mo in rent??? That just doesn't happen in SFR or multi family investing...especially not in Tampa.

This is a crazy deal and will sell quickly. The cash on cash is through the roof.

I have 5 lots on 2 parcels that have power poles, water, and septic ready, with impact fees already paid.

Market rent is $650+ per mobile home.

There are currently condemned single wide trailers on each lot which must be removed.  I spoke to the Fire Department, and they would do a training exercise there and clean up all the demo they caused. So half the demo will be done for you.

3 lots are 105x110- perfect for double or single wide trailers which you can bring in new or used.
2 lots are 70x110- single wide lots

Pictures: https://drive.google.com/open?id=1Qa0Fs3A6O4INhGpqQlz-4MrfMG4EGq6D

Pictures: https://drive.google.com/open?id=1J8SmdIx8UdDdTZFlBHaNU1K1WSDgbmSk

What we have here:
1525 SF 3/2 with Huge Corner Lot. This is listed by the property appraiser 2/1, but a Master Suite and Plumbing has already been added to make it a 3/2. You may need to do some after the fact permitting.

2 year old roof with new trusses (homeowner is a licensed roofing contractor)
Fairly new A/C (I don't know the exact date
Most of the house has newly dry walled and textured walls
No Kitchen demo. It's wired and plumbed, but they never put any cabinets up
Master bath was plumbed and partially dry walled, but you have a clean canvas to work on
Wood sub-floor Needs leveling

HOUSE IS NOT VACANT
Call or email for access to view.

Address(s):
1802 Mobile Ave, Tampa

Selling Price:
$131K NET

Comps:
1309 E Caracas St Sold for $240K ($176/SF) - This one crosses a larger road, so maybe not the best comp
1909 E Louisiana Ave Sold for $174.9K ($197/SF)  - Top Notch Rehab one block away
1907 E Ellicot St Sold for $139.8K ($116/SF) - Minimal remodel

By the Numbers (our best guestimate at costs):

*Numbers are an estimate. You should conduct your own due diligence before making a decision to purchase.
ARV: $248,575
Rehab: $48,000
(Kitchen: $10,000, Flooring: $8,000, Bathrooms (2): $7,000, Paint: $3000, Electrical/Plumbing: $2000 Landscape/Fence: $3,000, Hardscape: $5,000 Miscellaneous: $10,000)
Profit: $69,575

@John Woodrich, feel free to read the whole statement.  I have a 20 year old college student.  And yes, they help me scour social media for leads.  While your children may not be competent enough to do that, mine are more than intelligent to do so.  As far as paying in cash, I was relying on information on the Bigger Pockets podcast from a CPA who has been interviewed on the show 4 times and literally wrote their book on taxes and real estate, so forgive me for accepting that as a reliable source.

I’ve heard Hillsboro Bank is pretty good.

Forgot to mention, it is an LLC taxed as a partnership that my wife and I own.

They are 14, 15, and 20. I paid them cash. I was basing everything off of the Amanda Han podcasts. She said they could be paid cash or it could be paid for things that are not expected to be paid for (food, housing, clothing,etc). They searched social media and Craigslist for Homes for sale, hand wrote letters weekly for me, and did driving for dollars.

Following: My concern has been, would I be breaking SEC rules by starting to raise money now or can I start building interest?

I asked my CPA about shifting $6,300 to each of my kids on my tax return for the work they did in my business. He told me I would have to 1099 them. Is that correct?