All Forum Posts by: Paul Pratt

@Patricia Sander I think you're overcomplicating things.

1. Almost all real estate transactions are AS IS.

2. Within your inspection period you do your due diligence, if you don't like it you can back out and take your EMD with you.

3. You can ask for a credit but seller doesn't have to give it to you. Someone else will probably buy it if it's a solid property.

4. Any attorney who is urging you to complete a deal you're not comfortable with is not a good sign.

Quote from @Andrew Creel:

Quote from @Paul Pratt:

@Andrew Creel I'd say time would be the bigger deciding factor. If it takes you a year plus to get permitting and build vs a renovation in a few months then in the course of a year you would potentially let 6 months or more cashflow slide. Totally up to you, but if the cost to build is similar, I'd just renovate and start your house hack sooner than later!

Paul, thank you for the response. Would the 6 month head start in rental payments outweigh the probable differed maintenance on an existing Duplex? 

I think it depends on a few things. In my area of Florida for example, concrete block construction is much lower maintenance than frame. So If I found a block duplex, even if it's older, I'd prefer that over a brand new one made of frame/wood. I'm sure your climate is similar.

Swap out a roof, cabinets and flooring and paint and you're good to go. Building can be a hassle even when builders promise you it won't be lol So the more specific we get the better and will help make your decision easier. 

At least what I've seen is rents/prices for multifamily units aren't impacted as much by the year of construction.

@Andrew Creel I'd say time would be the bigger deciding factor. If it takes you a year plus to get permitting and build vs a renovation in a few months then in the course of a year you would potentially let 6 months or more cashflow slide. Totally up to you, but if the cost to build is similar, I'd just renovate and start your house hack sooner than later!

@Anthony Alexander there is no minimum value! Just keep in mind that money from will go straight to an intermediary. Which you will use for your next property which must be identified within 45 days, and purchased within 180 days. The property needs to also be higher in value as well or you'll have to pay capital gains tax on the difference.

Hope this helps!

High risk, possible high reward. Not inspecting a home is never the play. On paper that sounds great, but it's very possible an inspection will catch some serious issues. And the next person who buys from you will obviously get an inspection and have a ton of red flags. I ALWAYS recommend doing some sort of due diligence. A shiny new remodeled house is great, until a bad inspection report comes back.

Hey everyone,

I know sometimes it's hard determining what areas permit STRs. So For Daytona Beach, I have city documents outlining where it is permitted. If you are thinking of investing in the area I will gladly send them your way via email. Also some of the surrounding cities have no restrictions at all!

Best,

Paul Pratt

Not sure what the prices are like in Ontario, however I would not spend more than 50% of your funds on a downpayment/closing costs. You will most likely needs the other half for repairs unless it's turnkey. I would say look at it one step at a time.

1. Set a budget. Including reserves for repairs.

2. Decide if you will do multi or single fam.

3. Look at a property that has been sitting on the market for a while. (best chance of getting a deal)

4. Offer on it! Hopefully the sellers are motivated and you can start off with some equity with some paint/minor repairs etc.

Good luck and welcome to the world of Real Estate you got this!

Congrats Greg! Looks amazing. I'm sure you had a ton of doubters but you made it happen. Always love seeing these transformations, your are re-shaping the city in a positive way by doing this.

Absolutely, in your area it will be difficult but if you have some solid co-signers can make it happen. Competition specifically for multifamily is fierce but if theres a crack in your market that would be great.

Agree to above, if the numbers don't work simply find one in a non-HOA area. Not worth getting bad reviews via billing or from the community.