All Forum Posts by: Shawn Parsh

Patrick,.

How much land came with the trailer? I like the rent option in this case, but I would likely look to add an additional camper pad on the land that I could rent either short or long term. I live in NE TN and our RV sites are going for 500 a month. 

Luis,

Agreed, it is always a good time to flip if the numbers are right. I like to flip some and hold others for rentals. You are correct that your money is made when you buy, however, inexperience can ruin otherwise good deals. Even if you buy a property right you can lose potential profit by not managing the rehab effectively. If it takes too long to complete, mistakes are made, the wrong people are hired, money is put into repairs that do not pay off and so on you can lose money. 

I have known a lot of investors over the years that buy a house to flip and then start lining up the work after they own the property. Yes they usually still make money, but they would have made more if they had everything lined up before the closing and the work started the day they closed on the property. 

Tristan,

I was hoping you would get some input as I would love to know the answer as well. I'm going to a new CPA this Friday who has extensive real estate experience so I'm hoping he will be able to advise me on the best/easiest software to utilize. 

April,

I need more details. Are you building a new building from the ground up or are you rehabbing an existing building? In general the holding cost I estimate are utilities, loan payments, taxes, and up keep costs for example. One of the reasons I have been successful in rehabs is because I have my projects lined up before I even make the purchase and then the work typically starts the day I close on the property. I keep the project moving so I can either rent the property or flip it quickly thus reducing my holding costs. 

Kurt,

I would leave it a laundry room. It will reduce rehab cost, speed up the project, and I believe most people prefer an indoor laundry area. The extra bedroom May increase interest in the property, but when people actually walk through the house and see how small the room is and that they will have to go to the garage to do laundry I do not believe it would help the sale in most cases. 

You could also put in a stackable washer/dryer within the current room to free up some of the space. I just completed a rehab where I built a closet with a bifold door to house the washer/dryer. The buyer can decide how to use the additional space. Good  luck. 

James,

  You have been given solid advice, but I will add my input. If the family members are helping you with the project in anyway I would pay them. It is your business so you decide how much to pay. I would pay them after the property has been flipped and you receive the funds. 

What is great about finding people to help you build your business is that the more you reward them the more they will likely contribute. I have had a lot of luck getting people to find me deals that are not even listed because I pay a finders fee. It essentially means that I have people working to build my business that I only have to pay with they get results. The same holds true with family members. I have hired family members to help on rehabs many times. The more people you have working to build your business the more success you will likely have. Not to mention you will be sharing the profit with those you care about. Good luck.

 Erika,

I agree with Rick, I do not test. I've rehabbed a lot of houses over the years and I have never tested any of them. Take the precautions and move on. I also love Glen's advice about not snorting the dust....too funny. 

Cleiton,

You have been given solid advice so far, but I thought I would add my comments. I understand that a property can be on zillow and not listed by an agent. I currently have a property on zillow under the for sale by owner section. It that is the case I would contact the owner and go see the property. 

Whether to rent the property or flip it is solely based on your long term plan and situation. If you do not have a good CPA with extensive real estate investing experience I would find one and get their advice given your particular situation. Are you looking for monthly passive income or a lump sum? Flipping requires you to continue to do deals to make money while renting provides a steady income. However, you can do both which I also do. You can flip when you need to produce cash to buy properties cash or fund additional rentals. If you still have a mortgage on your own home you could flip until you pay it off. 

To determine the property value I would find a good local realtor that can provide you their estimate on not only current value but also the after repair value. I would also find local contractors and have them give you written bids for the work you would have done if you buy it. With that information you will be in a better position to know the current value and potential profit. 

I always assess a properties value independent of the asking price. People can list properties for whatever they want, including those listed by a realtor, it doesn't mean that it is worth what they are asking. In the end you are an investor and the deal has to make sense or why buy it. 

You also need to decide what the minimum profit you are willing to make to get into the deal. That could be the least cash flow you are willing to accept if you rent it or the profit if you flip it. For example, I would not flip a house if the numbers didn't support  me clearing 50,000 or more. Anyway those are my initial thoughts. Good luck.

 

William,

Congratulations on your decision to take action. I agree with the comments so far. I personally am not a fan of partners at least early on. I like the advice Nicholas gave about looking into a live in flip. That should drastically reduce your cost and lower the risk. Good luck. 

Katlynn,

  I live and invest in NE Tennessee and we still have a shortage of inventory. There is a huge demand for long term rentals. This area has a lot of short term rentals because we draw a lot of tourist looking to see the mountains, hiking, or biking. There are also very few houses on the market and the ones that get listed usually move pretty quick.

Currently there are single wide trailers that are selling for over 200,000. It's crazy to me to think someone would pay that much for a trailer, but it's happening. Some people are buying campers and renting a lot because they can not afford a house or find a property to rent. The RV lots are going for about 500 a month.