All Forum Posts by: Mike Reynolds

I came across a deal today on a condo off market. Condos are not my thing, but this thing is a smoking hot deal. I would have to pay cash within the next 7 days to get it before it goes on market. The problem I have is that I am also looking at a few other deals that I hope get the contract dropped and I think at least one will. I dont want to tie up too much cash right now. 

I recall reading something here a few years ago about how hard it is to cash out from a condo. I dont even know if this is true or not. If it is, then I may have to let this one go. My questions are, can you cash out from a condo when it is investment property? Can you 1031 it? What are the different nuances as opposed to SF? 

It is small for a 3/1 but we have plenty of them down here. Most are built for HUD.

Come to think of it, I know where there is a 4 Plex that is 40x80 and houses 4 3/1s in it. 

1000 sq feet is a very large 1bd 1bth. That's the first thing that strikes me as odd. 

 Also wanted to say that I have seen your posts on here and I have a lot of respect for your opinion. I don't get to spend as much time in here as I used to so most questions are usually answered by you or other great contractors. So mostly I just hit the like button and carry on. 

 I just came up on this thread. It was on my home page today when I logged in. I just hope he takes a real good look at the numbers again. 

 Where are you going wrong here? 

You dont know how to frame. A 30' wall will have 23 studs in it. Plus trimmer studs. Plus cripple studs under windows. Plus Tee's, corners and headers. Your bottom 2x4 will be treated. 2 2x4's for a top plate. Nails, bolts, hurricane clips, X bracing, etc. Framers dont charge just to put studs in. They charge to DRY-IN. That means sheathing and decking on the roof. Last time I framed in PA (Yes, I have but that was back in '89) we didnt install the ice and water. That was the job of the roofer. We did the siding if it wasn't brick. That all adds up to your framing package. If you are just figuring studs as the only cost then it's the same as figuring the anesthesia for the only cost for a brain surgery. 

Your front wall will have 14 trimmer studs alone (3 for each side of the beam). One small header and 2 large headers/beams. Since I dont see a bedroom or a kitchen I assume you have a floor or two above this one. That means you need structural beams on those garages. It will hold the living areas above or it will crash down and kill someone. If that is a basement level then you have other costs to figure in as well. 

If you GC told you these costs then expect to go under real fast. If you think that these are the costs then you really need to get some better info. This forum is not that place for that. Go to JLC forum or Breaktime Forum for Fine Homebuilding mag. One word of advice though. The JLC doesnt tolerate newbies very well unless you explain that you are one. 

I have a lot of experience in the construction industry. I would like to help but please put the brakes on and get all your ducks in a row.  I have built high end and had one job slated for Architectual Digest but the editor didnt like deer heads and wouldnt take it. I have built 80 million dollar projects down to 300 buck handyman stuff. I have been twice interviewed and printed in Builder Magazine when I had my company before I retired it. I say all this not to brag. I say this to tell you that I would walk away from it. 

If you say you can make 200k from the land I would do that. Maybe offer it at a cheaper rate to a developer with lots of years under his belt and take you on as a limited working partner. Then make your money that way. You say the land cost 750k. You say you can build it for 750k. You say you can get 1.7M for it. That is 200k all day so why wait 12 months to get that money? 

 I own mobile home parks. I dont own mobile homes if I can help it. I'm not saying you cant make money this way but you will have to redo the home once they move out. Another thing that is a stickler for me is you wont be able to refi the home for further investment down the road. 

 I have been investing in Saline county with very good results. 

 Most of mine I found on the struck off list at the county level. Beware of the wetlands though. Check that out or you might not be able to build on it. 

We made a killing off of ten this year. We just wanted to sell them at cost but turns out there is a huge market for low cost homes. Now we just rent the land underneath them. 

I am now looking at another piece of land with one mobile on it. It's ten acres and has hookups for one more. The rent on the one will pay the notes and the second will be profit. It's 4 miles from the lake though so I may make it into an RV park instead. 

I say yes, you can. Depends on the circumstances.