All Forum Posts by: Matt Carpenter

@Account Closed

Glad you're finding it useful! Just stick with it - you'll get it.

Feel free to shoot me a message with any questions.

@Julie McCoy Welcome to BiggerPockets, Julie!

Two books I'd recommend: What Every Real Estate Investor Needs to Know About Cash Flow by Frank Gallinelli, and Landlording on Autopilot by Mike Butler. The first will help you learn about analyzing a deal and the second will help with your goal of remote investing.

Also, check out BP Podcast 120: How to Find, Analyze, and Finance an Incredible Real Estate Deal!

@Shannon Bae Welcome to BiggerPockets, Shannon!

It sounds like you have a great purpose as your driving force. Now to just ask as many "newbie/lame questions" as possible! We are happy to help!

Side Note: to get the @mentions to work, type "@" followed by a "?" and a drop-down list of people who have posted on this thread will appear and you can just click their names.

The remodel has begun! Next step: knocking down some walls.

@Ramon Jenkins

Thanks - it took a while to decide on, but happy with the result!

@Raquel Baranow

We've done similar properties in the area and have confidence in this investment, but you never know what can happen.

We are able to do everything at cost with our in-house construction company, so that also helps us with our margins.

Sounds like a good deal - I think we all need one of those friends.

There are plenty to go around, it's a great time to invest in Tucson!

@Adrian Watkins As a fellow Tucsonian: Welcome to BiggerPockets, Adrian!

You've come to the right place. It sounds like you have some solid goals. Make sure to check out BP podcast #6: Investing While Holding a Full-Time Job and BP podcast #64: 50 Units in 5 Years While Working a Full-Time Job

Those should get you started in the right direction! Feel free to contact me if you have any questions about the Tucson market.

The Deal

Recently picked up a 2 bed 1 bath home with 902 SqFt near the University of Arizona in a great college rental area. Also, being close to downtown Tucson, it has solid potential for a family residence.

Originally picked up this house by mere chance. Driving through the neighborhood, we saw a 6"x12" FSBO sign in one of the windows and made the call. The owner no longer lived in the area and was unable to get the house rented in its current, rundown condition.

The owner wanted to get the property off his hands and asked for $62,000. The initial plan was to get him down to $55,000, but we decided it was too strong of a deal to draw out negotiations (and let other investors sneak in offers) and gave him the full $62,000 (closed April 29).

Having done a few other properties in this neighborhood, we didn’t have much trouble envisioning the remodel. The plan is to add about 1,000 SqFt and convert the home into a 4 bed 2 bath. We will have to gut and redo everything (electrical, plumbing, kitchen, baths, flooring, etc.).

The Investment

• Purchase Price: $62,000
• Remodel Cost: $105,000
• Carry Time: 6 months (4 months for remodel and 2 months to list and close)
• Finished Product: 4 bed, 2 baths - approx. 1,900 SqFt

Option 1: Flip

• ARV: $230,000
• Actual Sale Price: $211,000 (230,000 - 19,000 closing costs [2%] and RE commission [6%])
• Profit: $44,000
• Cap Rate: 26.3% (44,000 / 167,000)
• Yearly Return: 52.6% (44,000 x [12mo/6mo])

Option 2: Rent

• Estimated Monthly Rent: $2,100
• Annual Rent After Expenses: $17,640 (2,100 x 12mo x 0.7)
• Expected Return: 10.6% (17,640 / 167,000)

Before Pictures

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

@Min Qiu Welcome to BiggerPockets, Min!

It's awesome to hear that you're taking advantage of BP's great resources. To learn more about properties that cash flow as well as appreciate I'd recommend Frank Gallinelli's book What Every Real Estate Investor Needs to Know About Cash Flow. Also, in this book you will learn two additional means (besides cash flow and appreciation) in which your property can build equity.

If you're interested in wholesaling and flipping in what @Dee Miles pointed out is "one of the hottest areas around," I'd recommend you check out BP Podcast #96: Finding Deals, Wholesaling, and House Flipping in a Hot Market

Best of Luck

@Traci Pickett mentioned, Brandon Turner's book is a great starting point for pursuing your interests. I would also recommend you check out BP Podcast #92: No (and Low) Money Down Real Estate Investing

I hope you'll find that BiggerPockets has the answer to all of your real estate questions, and if not, ask away!