All Forum Posts by: Matthew A Rodriguez

Have you considered focusing on blowing up your income and ploughing everything into savings and waiting for the next crash?

Interested to find out how things are going for you. I always enjoy reading about other's RE journeys.

This is my thought on the subject. If you want to own a landscape company then make it the best landscape company in your area. Make that your flow. Push all extra cash into a PASSIVE cash trickle. Build your company to a point where you can step back THEN turn that second trickle into a flow. A lot of people want 2 flows out of 2 businesses but too often when focusing on 2 businesses they only put 50% into each business. This is when their 2 flows turn into 2 trickles. 

Someone is getting a lot of good( or angry) leads.

Welcome to the site!!! First tip is to get a profile picture. People feel more comfortable talking to someone that they can put a face to. Second, if your not a master at marketing, negotiation, contracts, closing the sale, estimating rehabs, and comping properties you can get yourself in hot water very quickly. It's basically the top of the strategies. Go to your local Reia and find the true wholesalers doing business. Find out what kind value you can bring to them. Learn the ropes without hanging yourself with them. Best of luck!

@Kyle Penland

Good to know man. It looks so good but maintenance is something I need to steer clear of. What are some of the issues your having with it? 

@John K.

 After more research I most certainly agree with you on choosing the asphalt over the metal. I'm reading that metal roofs could cost up to 3 times a asphalt roof. I don't think ill be around in 3 asphalt roof lifespans. lol.

So with all this talk about cap ex I was wondering what you thought about using wear resistant materials in rehabs. my business model is to by extremely distressed and do full rehabs. I will list some and rent the others. Thoughts on using metal roofs, stained concrete floors, quartz counter tops etc. I want to alleviate big ticket repairs 20 years down the line.  

BEAR DOWN CHICAGO BEARS!!!! Invest 45 min south. Get your money out of that beautiful city. 

Flip and hold Business Model

1. Buy Distressed (70% ARV - repairs)
2. Buy in the path of progress (future appreciation/ GOOD SCHOOLS)
3. Buy a value add (add bedroom/bathroom ect)
4. 20% down with a 15% CoC return
5. 10k in cash reserves
6. Exit strategies are:
   
   1. Flip and hold
   2. Flip and sell

Example: 2bed/2bath

ARV:$100,000.00

Repairs:$40,000.00

Purchase Price:$30,000.00

Value Add: 1 bedroom

ARV W/ Value Add:$115,000.00

My Cash(20%):$14,000.00

Hard Money:$56,000.00

Refinance into a Mortgage:$54,320.00

3% down:$1,680.00

Equity:$60,680.00

Debt Service:$444.24

Monthly rent: $1,250

Expenses:

Vacancy:$95.83

Insurance$100.00

Maintenance:$172.50

Taxes:$125.00

Management:$115.00

Total: $$608.33

Cash Flow:$197.43

I want a conservative model that assumes no appreciation.

Does this model make sense to others?

Am I missing anything?

Constructive criticism please.