All Forum Posts by: Spence Kal

@Jennifer A Barry

Wow I wish I had you as a tenant!! So good communication and a little bit of freedom on the paint? Sounds like I should find ways to let tenants make it their own home

@James Wise

Absolutely! Love your YouTube content, awesome stuff!

@Arthur Hughes most of that is internet marketing and advertising. It’s useful, but so is having a whole marketing team working for you, which nobody can afford starting out. They might be capable but they seem to be over selling you on their premium package to make money. I agree with the previous comment on starting slow. You can walk into a room of 100 investors at a meetup group and be 1 of 100 people. Or you can put up a website and some ads online and be 1 of 100,000,000 others, with no personal connection or recognition, just another name floating around the internet and someone’s inbox. I just think for that kind of money starting out you’d have a much higher chance with other marketing avenues.

@Carrie Purkeypile

Thank you Carrie! I’m really excited. I thought about refacing the cabinets I’m glad someone else had that idea also, I always second guess my ideas on new things

@Jennifer A Barry

Thanks Jennifer! I’d love to know your opinion of being a renter, what makes a good landlord for you, what do you wish they did better, anything like that? I’m always talking to people who own rentals and never get the other side of people who rent themselves

Hello BP friends! I'm extremely excited to tell you that I purchased my very first BRRRR deal this past week! I wouldn't have had the courage, mindset, or knowledge to do it without the help of all of you so thank you for being such an active and open community. I've spent the last two years finishing college and working on two small flip projects, and absorbing BP info, and it's a huge step for me to get into a rental and build some wealth. It's a 2bd 1.5 bath ranch in what I think is a B neighborhood East of Cleveland Ohio. It was on the MLS, I never thought I would get it because there were multiple offers the day of listing, but they accepted mine! I'll be financing half of it with my own cash from flips, and half from a private loan, then refinancing through a bank in 6-8 months if possible. I was looking in a cheaper area for a section 8 rental to pay all cash, but decided it was better to use some leverage and buy in a better area. The price was 161,500 with recent sales comps in the area around 215. With closing costs it's 163k, and I'll put around 2-3k into initial reno. It'll be turned back into a three bedroom as it once was, and for now I hope to do light renovation, just paint and some new fixtures. The comps in the area are all $1 a sq ft/month and with 1700+ sq ft I think I can get $1600-1650. The kitchen isn't great, and I'm wondering if I should renovate it now or wait until a few tenants have been through there? The oven in the photos is obviously coming out. It would probably cost me an additional 5k to redo the kitchen completely, and I don't think it would justify a raise in rent up past $1700. I realize this isnt a home run deal, but to me it was good enough to learn from, and I know I could sell it quickly if i had to. I I know the BRRRR strategy requires a renovation, but would it be wiser to rent it out for a year or two and see how people treat it then gradually make it nicer? What do you all think?

@Aaron K. Ha! He must have been thorough. How often do you hear that on the news, people getting high from an AC unit? I’ll make sure to check for locking caps on mine haha

With all the different HOAs, cities and what not, what’s the weirdest regulation and penalty you’ve had to comply with?

Here's my story: I recently bought my first rental in an area with a POS (point of sale) which is new to me. Apparently they come inspect at the time of sale and tell you if your house it up to par, like a giant city wide HOA. Now mine is quite trivial and I'm happy to comply, but apparently my house numbers are not adequate, and must be at least 4" high with minimum 1/2" stoke for contrast. Does the 4" include the stoke, or is that on top for it for a total of 4.5? If I don't comply I am supposedly going to face a "misdemeanor of the first degree" with "maximum $1000.00 fine and 6 months imprisonment".

Can I really spend 6 months in the slammer for using 3” house letters?

I’d love to hear the dumbest regulation and consequences from everyone here, so whats your story?

It sounds like what your asking is, on average how much time does it take to make as much wealth on a rental as the same house flipped, not so much which is better. Obviously it depends greatly but I looked at this also and maybe my math is wrong but it looks around 5 years for wealth, in my inexperienced opinion, just based on a basic standard deal and math. So for example:

If you buy a $100,000 house for 20,000 down, rent it for 1% of purchase which is $1000/ month, with 50% rule of expenses, so 500 for taxes insurance etc, rest for mortgage and cash. For wealth you have to consider principle paid down plus cash flow but don’t forget amortization. So 150-200 in principle and 100-200 in cash. 250-400 a month that’s 3000-4800/y and in 5 years you have $15-24,000, average around 19k?

Then your flip would probably be purchase at 70k put 30k in and sell for 130k. So making 30k with 40% taken away for taxes you’re close to that 15-24k range that you hit with your rental in 5 years. That’s just with the first few years of amortization, later years you make more because more goes to principle.

So based on that around 5 years to make on a rental the “wealth” you would make on a flip

Disclaimer: That’s just my math, it might be unrealistic

Wow I can’t believe the stories here this is so inspiring to keep going!

Long story short, bought my first flip in 2018 on the mls, while going to college full time, and buying a second off market deal, doing most work myself. I made around 60k on my first deal and two years later, even without the money I made, it was a life and mindset changing experience I’d never give up.

Short story long...

Since high school I’ve wanted to flip houses so bad, it’s like it wasn’t even an option, I knew I had to do it. My last two years of college I found small bank owned SF on the mls and jumped on it. I was going to college full time and started working on a second off market flip, doing most of the work myself. Two years later I sold both houses and graduated, and this month got my check for that first house, making around 60k. It was a huge blesssing to have that opportunity, and even without the money it was worth it. A few years ago I never would have thought I could have done this, ever! I pushed myself with classes and the flip beyond what I ever thought I could do and the feeling from knowing how hard I worked those two years and how much I learned is indescribable. It changed my mindset from “I don’t think I can...” to “ anything is possible just do it” and I think that’s what holds most people back.