All Forum Posts by: Patricio P.

45-65k ARV is a huge range. I think what is owed on the property is irrelevant until you can pinpoint a much more specific ARV. A 50% range is far too much uncertainty to proceed with purchasing in my opinion.

I would get help from a realtor on estimating ARV and/or pull comps to get a better idea. Like @J Scott says, it's a good idea run your calculations on 100 properties before you submit you first offer. That way you have a stronger understanding of what houses are selling for.

You may want to check with your CPA regarding your tax liability as a flipper. I have heard that you don't get taxed at the investor rate as a flipper but I may be wrong. Better to consult with your CPA to be sure before you decide.

Hey Rocky, welcome to BP. Tell us more about yourself and your investing goals.

It can vary greatly from year to year but if you bought in Mountain View CA last year then you are probably jumping for joy since your house appreciated approximately 22.7% on average. Another point is that we should make sure we are comparing Apples to Apples. MFH are not valued the same way a SFR would be and can have very different results in terms of cash flowing given that they are two different markets. One is primarily purchased retail by first time owner occupants while they other is bought by investors. Everyone is convinced their way is the best but there are 100's of ways to make money in real estate. You simply need to be informed, committed, and play to your strengths. There isn't a one size fits all strategy.

@Alex Applebee What sort of ARV discounts are you looking for when you buy in Santa Barbara? If ARV is $899,000 and you estimate $60,000 in rehab to be safe, then a "safe" purchase price of 70% of ARV minus rehab costs should be around $569,300. Do you mind also providing some insight into how you calculate your rehab costs? Did you have a GC do a walkthrough with you during the due diligence period?

I'm new to REI and although I've read up on the concepts I understand things vary greatly from one market to the next. I'm very interested to see how thing flip goes and hear your insights. Best of luck!

What sort of percentage will you be offering investors on a rehab and flip? Are you looking for HML or JV equity partners?

Quick Tip: You can print out a checklist of all the action items from the show notes page. That way you don't miss anything if you're like me and listen to the podcast on a walk or in the car.

I would imagine you would want them to be from your same state so that they are more familiar with the laws that affect you, right?

@Jeff Pollack I'm researching the Bay Area market and was wondering what your opinion is on typical rehab costs per square foot and what ARV discounts are achievable and considered a good deal?

@David Song did you go the turnkey route or rehab and rent? What kind of discount do you buy at?