All Forum Posts by: Mark Bookhagen

Using a HELOC is a very common way to get started. If you have the skills to renovate, you'll make more money with a fixer upper.

Vacancy and repair expenses seem a little low, but still looks like a strong deal.

I've done it. It saves 3% off the bat; probably 6% if you're not a broker yourself. It also saves you time and interest. If you time it right, you can close within a week of finishing the work. A couple pointers: 

You need a pre-qual of proof of funds from the buyer.

You need a non-refundable deposit (the bigger the better).

You can give them a budget for each custom feature that you want to allow them to pick. If they go over, they have to pay for it at the time time you do the work. That last part is important.

Don't permit anything that you think will make it very hard to sell if the buyers back out.

Get it in writing when you need decisions on material by so they aren't holding you up. Also, once something is install, it's done - no changes by them like "I don't like this color anymore."

Good luck!

8-12% per year is common.

Minimum 12%

You have an expense in there for "Management." Won't you be managing it yourself? I would try like hell to save up that $13k, and go at it by yourself.

Nice work Aisha!

They look like they are probably close to accurate. In deals like these, you'll want to review the owner's tax returns.

Are you paying cash? 

Sorry Brad. I read the report too fast. I thought the numbers listed were yearly. They should really put "Monthly" on the Income and Expense sections.