All Forum Posts by: Patrick Sullivan

@George P. $75,000, just over 1000sq/ft, 4300sq/ft lot, 2/2 (would reno to a 3/2) detached garage in downtown Allen Park. 

@Josh Cunningham That's great. I have some friends and family out that way- I'll definitely have to check it out.

@Josh Cunningham That's a possibility. I have some room in the back that would open up into the yard. I'll check around with some agents to see what the comparable houses have going on in them.

As of now, I'm thinking that it would be best to finish the upstairs bungalow area and covert that to a 3rd bedroom. Then along the way do some finishing to the basement and basement bathroom making the home a functional 3/2.

I've heard the West side of the state is doing pretty well. How's the Kalamazoo area treating you?

You know what Cory, I've actually heard that about the basements a few times now. It really blows my mind- you would think a finished basement would help the cause. I wasn't looking to finish the basement as in make it a fully functional man cave or anything like that- but more along the lines of putting up drywall, paint and floors like you suggested. Just enough to make it look appealing. But I'll definitely consider what you're saying. The kitchen and main floor bathroom are in pretty good shape, but could use a few updates. The second bathroom is in the basement- which is basically just a toilet and sink, nothing else. 

I will definitely take pictures along the way. Thank you for the advice.

So, I'm currently on track to buy a primary residence that I intend to flip in 2 years or so, pending the market. It's completely livable on the main floor- needing paint, hardware, doors, smaller cosmetic detail. It has an unfinished basement that I will finish, and an upstairs that can be finished to add another bedroom. The work will be done myself. 

I've checked the areas for comps, and the price seems right to buy. I'm not banking on appreciation here, but it would be a plus, of course.

After reading books, websites, forums and watching videos on flipping- the standard ARV calculation seems to be the most crucial piece to assessing if a property will be worth the time and money. Since this will be my primary residence, time will not be a factor and the carrying costs would be my normal monthly bills. What I'm wondering is; when it comes to a long-term flip like I want to do, is there any other guidelines to follow or not follow?

Experienced investors*^

I've never heard of that exact method- but I've been thinking about the same thing. I'm thinking of flipping a few times to build up some capital, then reinvest that into a rental. I see no reason why it wouldn't make sense to repeat that method over and over if the market and your area has room for flips and rentals alike. 

I'm interested to see what experienced invested say about this. 

Welcome! I am also new to the game and in the SE Michigan area. This site is a great resource to find information and to connect with others. Check out the podcasts as well if you haven't already- they are loaded with great advice. 

@Tom A. Great, thank you for the advice and meeting information, I will definitely be attending. I hope to see you around.

@Brandon Gentile Thanks for the advice. It's good to have reinforcement of my initial ideas to know I'm going in the right direction. I will definitely check into the meeting in the area- That sounds like a perfect place to get a lot of information. I've checked on sites for REIA meetings but the dates are not updated for future meetings, and I wasn't exactly sure on who to contact to find the right information.

@Sam Ball Sounds like you hit a homerun in Ferndale, I like the idea of putting focus towards a young crowd. And thanks again in advance for anything you can suggest.

@Eric La PrattThank you for clearing up the 203K and FHA deal. I was trying to find clear information on them but wasn't really getting anywhere. So, bottom line- with the plan I have, going with an FHA loan, doing the work myself and living in the home for 2 years is ideal. But, if I were to sell that home within the 2 years, the taxes I would have to pay would have too much of a negative impact on profit? What type of % am I being taxed? Also with a live-in-flip, does the standard 70% rule still apply?