All Forum Posts by: Obed Calixte

You’ll want to talk to a CPA to help you estimate what your tax burden would be in both the under and over 2yr scenarios, see if you qualify for a partial exclusion, etc.

It’s difficult to blindly say hold it or sell it now if you don’t have a full picture of what your tax burden.

why not knock on the doors in the neighborhoods that you are doing tear downs and remodels on? It sounds like you already know how to market/find properties for your construction work - leverage that same skillset to find flips.

You have an advantage over most beginning investors in that you know more accurately what the rehab costs will be for a certain project. That piece is often underestimated by many.

For the other key numbers:

The structure is Maximum Allowable Offer (MAO) = ARV - Holding Costs - Rehab - Closing Costs - Profit

ARV (after repair value based on recent sales within a 1 mile radius. Go conservative )

 - Holding Costs (loan payment, utilities, insurance, etc)

 - Rehab Costs (you will have a good handle on this)

- Closing Costs (you will pay closing costs on both purchase and sale of home) 

- Profit (minimum you would want to take on the risk. This is the most "flexible" of all the items)

There are plenty of resources here to help you on your journey!

Renters have alot more options on the market now than 2 years ago. There is a marked slowing in the time it takes to rent a home and the overall rental market is cool now.

I have not heard of a flat fee for a rental listing, but there's a couple things you can consider to help your situation.

You can go back to your previous property manager and see if they would be willing to solely do the listing and lease up for you. 

Additionally, review your listing in the eyes of a renter to see if it is appealing. Consider offering specials or other incentives to get more leads.

In addition to all the points above - continue to educate yourself and surround yourself with those doing it at the levels that you want to get at.

I don't know what your family business does, but if there is a way, find creative, legal and non-invasive ways to leverage that to build connections and expand your sphere of influence. 

RE is very much a relationship business. 

A key step in all of this is to understand what the zoning of the property is and what is allowed.

Does the current/future use of the property conform to that usage.

Agreed that being able to buy at bottom is better than at the "top".  Do note I made no mention of FOMO or insinuating irrational purchasing.  There are deals in every market cycle.

Good on you for being able to time the bottom of the housing market. Please educate all Realtors on how to do so, so we can avoid giving bad advice.

....."time in market beats timing the market"

What has the HOA shared about the humming sound? Also - Check your HOA governing docs to see who is responsible.

Get bids for what the renovation will cost and determine how you will pay for it if you decide to move forward.

Additional questions to consider:  do you know what your unit will rent for? And will you self-manage or hire a property manager to do so? 

If you haven't already - find a reputable lender to qualify you and give you idea of what your PITI would be at 600K or other price point.

Shouldn't be an issue as posters above have shared. 

Something along the lines of "I live next door and from time to time may rent it out. If you have any questions about the property, the rental process or even where to eat - please let me know!"