All Forum Posts by: Moshe Goykhman

@Zack Karp I'm in illinois as well and will message you right now...would like to connect- have a similar situation. 

Does anyone use some sort of pricing matrix when debating whether to flip or keep and lease. For example, if the options are it would cash flow $300-$400 or net $25,000 on a flip vs $300-$400 and net $40,000 etc...Is there a formula used or is it more comfort based and individual i.e how quick you want the money out, interest rates etc...

Hi Everyone. Firstly, thanks to everyone who has added to my knowledge as I journey in this world. I am debating whether it makes sense to fully rehab or try to flip in as is condition I property I recently won at auction. 

I have walked it with my contractor and numbers would be 

Purchase: $236,000 

Rehab (I had 3 people out there): $75,000-$100,000 (accounting for contingencies)

ARV: $475,000-$525,000

In a best case flip scenario profit target would be in the $100,000-$125,000 range.

I have a friend who has flipped a few properties and feels a "fire sale" price as is would go for $280,000-$285,000.

I have only done personal renovations so feel if I want to rehab long term this was a very good buy and can make good money and learn a lot along the way. Alternatively to be able to net $30,000-$40,000 on a wholesale flip seems like a solid exit strategy as well especially since we are heading towards fall. 

I'd love any feedback or things to consider that I may be missing. 

Yes- treat them like you would the tenants. Background, finances and etc...

Hey everyone. Great thread. I've been looking for a basic answer based on this type of investment. Is the goal here 1 of 2 things? @Cj 

@CJ M. Either "profit/live off" the cash flow and accumulate enough of these properties that it "makes sense" or potentially break even and with time the property will appreciate and hope to sell eventually for a profit?

I apologize for a bit of a rookie question but with margins seemingly thin, wouldn't a correction potentially create problems where the cash flow doesn't even cover the basics and in this situation where there isn't much appreciation? 

Hi there! Simply put I will have $75,000 shortly available to do something with and I'm not quite sure which direction to go. My risk profile and talents are in rehab so I'd like to go that route, buy, rehab and flip but with so much good information on cash flow and refinancing I want to make sure I'm not ignoring better opportunities. 

I'd love some thoughts on which direction to go- I'm 30 and would like to push into this side of real estate for the coming years.