All Forum Posts by: Robert Foley

The only building materials that are out sight right now are lumber and copper.  Most everything else is up a little not a lot.  Unless you are doing a major re-hab it should affect you much.  Flooring, drywall, paint, door hardware are all about the same.  Most flips require 0-3 sheets of plywood.  Yes it is painfult to pay $50 for something that was $11 a year ago but in the big picture it is not a big

So the forced appreciation looks poor, which means what??? Either you are just in a terrible/terrific market where 100k homes can get 2k rent or something isn’t quite right. Are you sure you can get 2k in rent? Are you just being conservative with you ARV ( good for you!) Any way seems like a terrific BRRRR and a lousy flip!

One thing I would add is get some coil cleaner (Home Depot. $6.00). And spray the A coil thoroughly (maybe even get a couple of cans). If the A coil is crudded up it will kill the compressor in a year or two and greatly reduce both heating and cooling efficiency. The dust trails are indicative of the coil being plugged. Make sure to use Decent pleated filters (the $3 kind not the $25 ) .That is you best defense for the coil. After all that foil tape should do the trick. No need for a service call unless something is not working!

So a heat pump/ ac unit has a typical rated life of 15 years. Many die in 10 so getting 30 years out of a unit is really good. The equipment cost (wholesale) is between 1700-3000 depending on size and brand. Check out a-c wholesale.com for reference. You have be EPA licensed to legally install a/c units and since the equipment is so expensive you really don't want an amateur doing that work. A great price would be $4500 but don't hold your breath.

sounds a lot like a wishful thinkers deal.  New Mexico oil patch country is a real gamblers paradise (I know I live there).  Now maybe you are being brief for the sake of brevity, but I have about 12 questions for you before I would ever think of buying.   Like

Can you show me 10-20 comps of properties in similar condition?

Can you show me 10-20 comps of 150 k ARV closed properties in Hobbs

Is the property in the nice part of town or the rough part? There actually are better parts of Hobbs 

Zillow is notoriously unreliable in all of New Mexico (very nearly worthless due to our strange disclosure laws).  Have you actually got comps from an actual Realtor?

Just giving you an idea of what actual due diligence looks like , good luck!

call me anytime. Happy to share my humble opinion 

I just re read your first sentence (sorry about that🙄). If you are looking in San Juan county , there are a ton of opportunities but rents vary wildly so be careful. A few areas to stay away from include Crouch Mesa (major water supply problems) and the rougher neighborhood s in Farmington. If you are patient there are regular terrific bank owned properties and more to come (we call it the oil and gas bust). I have 2 rentals on the west side of Farmington and am always looking for my next acquisition. I have been looking at properties here for about three years and the market seems very stable and I doubt it will ever be much of an appreciation play. Need to get property at the right price

It also seems like there are better values in cortez Like this https://m.trulia.com/property/3261710926-524-E-Arbecam-Ave-Cortez-CO-81321 And this http://www.realtor.com/realestateandhomes-detail/925-Brookside-Dr_Cortez_CO_81321_M29598-87884 And this, which is the only property in Cortez I would be interested in right now https://m.trulia.com/property/1044893509-704-San-Juan-Dr-Cortez-CO-81321

You're water and sewer numbers are too low. It will be $30 each $60 total

Hi Eric I have two rental s in Cortez and I think you might be shooting a little low with rent. I get 600 a month for a dumpy 2-2 mobile ( it's my kids so they get a break) and 1000 for a 3/2 mobile on the edge of town by hospital . Rents are surprisingly high due to supply. If the house is nice I would shoot for at least 900 and think about how to add a br or bath to get even more