All Forum Posts by: Sam Evans

I am partnering with a good friend to flip houses in Texas. He has about 10 years of construction knowledge and I will be fronting capital and figuring out logistics of everything. We will both be hands on in the renovations.

My questions are:

(1) What is a fair percentage of profits for both of us if we flip houses? He suggested a 60/40 in favor of me, which sounds reasonable.

(2) If we renovate and decide to keep the property and rent it out, how do we structure profits?

*Bonus question*

I have heard that moving a home can restrict loan options when trying to sell; specifically with an FHA loan. Can anyone confirm or deny this?

Thanks for the quick reply Aaron. I will definitely look into everything you mentioned.

I recently found a potential rental home in southeast Texas. 2 bed, 1 bath and 1064 sqft. Asking price is 65k. Now, I have zero experience other than reading a lot of articles over the past few months and I'm in need of some input. I anticipate putting around 10k in renovations. My questions are:

(1)Do you think this is a viable unit in terms of cash flow? Rent would need to be at least 750 to meet the 1% rule (would hope for more), but I'm concerned that will be too expensive for the size of the house.

(2) Considering flood insurance, taxes, home insurance, etc., will all these extra fees eat away any returns? I'm unsure of the actual values currently.