All Forum Posts by: Matt Carpenter

Hello all, I've been a member of BiggerPockets for a little while, but I'm just getting settled in the Bay Area and want to say hi to the new crowd!

Here's a little bit about me:

After getting my Real Estate License in Tucson, Arizona, I moved to Los Angeles to study Real Estate Development at USC. I have just recently moved to San Francisco, where I am finishing up my bachelor's and hoping to get immersed into the real estate market.

My goal is to continue immersing myself into the world of real estate investing through mentorships and hands-on experience, while sharing on what I learn. As someone currently attending college - being new to real estate and business in general, I hope that by lending insight into my journey I can provide a unique perspective on entering the world of real estate investment.

Currently, I'm planning to get my CA license while I finish up school and hoping to meet some like-minded people in the area.

Cheers,

Matt

@Jean G.

We recently bought a church near downtown Tucson to remodel and turn into our new office, also sectioning off some space to dedicate as rental units.

A big issue to consider in evaluating an investment like this is looking into your city's ordinances on what would constitute it as a residential/commercial build. If it turns into a commercial build, there can be a lot of hoops you have to jump through to bring your project to life.

You can check out our church project and some of the numbers here:

https://www.biggerpockets.com/forums/522/topics/197693-1920s-church-conversion-in-downtown-tucson

@Rome Xu

I don't live in the area, but checking out your local Real Estate Investment Association might be a good starting point.

Here's a list of a few near you:

http://real-estate-investors-association.meetup.com/cities/us/ca/fremont/

@Jeff Ast Welcome to BiggerPockets, Jeff!

I would say that the first house was a good deal. If it cost you $58,000 and you are renting it for $825/month, you are looking at about an 11.9% return, which I would say is great.

As for recommendations:

• What Every Real Estate Investor Needs to Know About Cash Flow by Frank Gallinelli
• BP Pocast #120: How to Find, Analyze, and Finance an Incredible Real Estate Deal: http://www.biggerpockets.com/renewsblog/2015/04/30/findanalyzefinance-real-estate/

@Adrian Watkins

 That one was a: 

• $70k purchase 
• $130k remodel
• $278k sale price

@Alex Silang

I have faced a similar issue from friends and family, while looking to purchase an investment property in a rundown area of Tucson that has a lot of potential.

Don't Listen to Them

If they seem to have a problem with you managing properties in blue collar areas, they don't understand how much of a positive influence you are able to have on the lives of your tenants through being a kind, caring, and efficient landlord.

As @Carl C. mentioned. Grant Cardone weighs in nicely on this matter. As he would tell anyone who criticizes your journey: "That sounds like a personal problem, not my problem." Grant Cardone has built up an empire of over $450 million in real estate and has had such great success because he doesn't allow other people to project their problems of financial insecurity onto him.

I seriously recommend you check out his BP podcast:

http://www.biggerpockets.com/renewsblog/2015/02/05/bp-podcast-108owning-350-million-real-estate-10x-rule-grant-cardone/

The Deal

Just got our hands on a 3 bed 2 bath home with 1650 SqFt in a good family area, centrally located in Tucson.

How We Got It

This property was listed on the MLS and had fallen out of contract 3 times. The bank that owned it had done multiple price drops. They did another 25k price drop after a potential buyer backed out and we jumped on it.

The property went under contract at $65,000. However, during inspection, we asked for a $5,000 credit, assuming that the bank would not want to deal with the headache of the property falling out of contract again. The minimal credit did not phase them, and we closed the deal.

Remodel

Our plan for this home is to add roughly 300 SqFt, bringing the total to around 1950 SqFt. We are going to convert it into a 4 bed 2 bath and completely redo the floor plan - the current layout is chopped up and has a horrible flow. The full remodel will include: new flooring, kitchen, bath, appliances, paint, and roof. The cost should come out to about $65,000.

The Investment

• Purchase Price: $60,000
• Remodel Cost: $65,000
• Carry Time: 5 months (75 days for remodel, 30 days to list, 30 days to close)
• Finished Product: 4 bed, 2 baths - approx. 1,950 SqFt.

The Flip

• ARV: $170,000
• Actual Sale Price: $158,100 (170,000 - 11,900 closing costs [7%])
• Profit: $33,100
• Cap Rate: 26.5% (33,100 / 125,000)
• Yearly Return: 63.1% (26.5 x [12mo/5mo])

Before Pictures

Follow this post for regular updates and to see the finished home!

Other projects-

Deal Diary for Dummies: Wholesaling, Flips & Rentals #1:

http://www.biggerpockets.com/forums/522/topics/201...

@Adrian Watkins

Yeah, it's within just a few blocks of this one that we're working on.

An after picture of a project that we recently finished to give an idea of what the finished home will look like:

@Adrian Watkins Adrian, I'd be happy to take you by! Go ahead and shoot me an email and we can get linked up.

@Mark Wallis Will do!