All Forum Posts by: Stephen Ray

Congrats @Alaina Donofrio! Is the property a multi-unit? Find it on CL or zillow?

@Richard Sherman @Matthew Roder Thanks a lot for the responses. I completely agree that the house hack is awesome. I guess what I was really asking is I'm stuck in this live in flip until May. I'd really like to pick something else before then. Should I hold out for something I'm able to BRRRR or grab something that has good cash flow and will actually (technically cash flow) after 4 years or so. And then in May when I sell this flip I can get into a multi-unit house hack. Thanks again guys

Hi BP, I'm struggling with my next move and was hoping for some advice from the wealth of knowledge on these forums. After finding out about the BRRRR method, to me it seems like a no brainer as a great way to build up a nice buy and hold portfolio. I've been putting offers in and looking at tons of properties with not much luck (granted they are all MLS properties). I really would like to get a hold of my first rental ASAP. The market that I'm in offers plenty of opportunities for SFH and MFH that would cash flow (mostly C neighborhoods). Some even have opportunities to add value and increase rent, but not enough that would allow me to BRRRR. Is it worth it to spend my capital on a property that cash flows and has value add possibilities even if I will most likely not be able to pull my cash back out? Realistically you're not cash flowing until you have recouped your initial costs (Down payment + closing). I read a lot of forums where people are paying cash for properties some turnkey and some not and being happy with cash flow.. but you don't really cash flow until you've re-couped your initial costs correct? My plan is to sell this live in flip in May (after the 2 years to avoid capital gains) and try and house hack in another multi-family. My end goal is to accumulate a decent portfolio of SFH and MFH. So for someone with limited capital should I just hold out for something I can BRRRR or pull the trigger on a cash flowing property to get started ASAP? Thanks everyone.

I agree with most of the comments already. For everything else I would get a few estimates from contractors if you are not planning on doing the work yourself and then see if the #'s work. The problem is most of these issues aren't big value adds. Just maintenance type stuff. I would 100% spend the money on having a licensed mold company doing a thorough inspection and giving you an estimate. Like a few people have mentioned there are lots of times where mold is no big deal. But on the other end, there are times that it is a big deal and could really blow your budget out of the water and be a huge headache. I'm a new REI but there was mold in my first real investment property and I saw first hand how it can escalate price wise quickly. Good Luck!!

I believe that HUD works the same as a foreclosure. I have bid on a few foreclosures. Usually the agent says there are multiple offers and give you til 1pm (or whatever stated time)on a certain date to put your highest and best offer. I guess it all depends on the property and how the #'s work and how much you want the property. I am in a live in flip that was a foreclosure and their were multiple offers all "at least asking price" after 24 hours on the market. We ending up putting an offer of 15k over asking. Great area, and still a great deal. We got the house. The bad thing is you dont know if the next higher offer was $500 or 14,500 over asking. No bidding war. They just ask you for your absolute best offer and pick the best one. At least this is how it works in my area of MD. Good luck!

I agree with @Jay M.. Tile floors I would do first and cabinets over them but any floating floor do not put under cabinets. 

Hey @Joan Pla Congrats on finding an off-market deal that you want to move forward on! So when you say no money down do you actually mean 0? I am very new to REI but as far as I've found out the only possible way to make that happen is with a true private lender. Friends or family? I'm working on financing my first flip now and have spoken to a number of Hard Money Lenders. They will still require a down payment in the 10-20% range depending upon your experience. In addition you'll have to make the monthly interest only payments. I'm sure some people with some real experience will chime in on this but as another newbie just diving into my REI career this seems to be pretty standard. Good Luck!

I am a former full time contractor. Now I only do work on my own projects. Working on a live-in-flip right now. Just trying to give you a heads up on rehab costs. I can barely do a kitchen myself for $8 grand. As far as HVAC that seems cheap but if you have a guy that has a good track record and can do it for that price.. great. Never lose his phone #. The best advice I can give is get a few estimates. You'll find quite a range. Referrals are also a great way to get someone that will do a good job. Good luck with the project and keep us updated. 

I'm a real estate newbie that's from the area. I am pretty familiar with the contractor side of the business. Not looking at comps and just strictly your repair estimates they seem very low. I think that HVAC # is a pretty good price not including any duct work.. is duct already in place? Carpet seems low, kitchen seems low. Like @Matthew Paul said is the electrical been upgraded and how does the plumbing look? The kitchen and bathroom #'s will vary a lot depending upon plumbing/are you opening up any walls/ the quality appliances/fixtures you are putting in. 

I work for the local power company. We see meters stolen fairly often in lower income neighborhoods. Sometimes from vandals just looking for something to do. Other times thieves that steal them to plug into a vacant property that the meter has been blanked off for non-payment. If you have a property in a lower income area and have had this issue it might be a good idea to build something around the meter to prevent vandals/thieves. Just make sure to check with your local utility first so they can still get access and approve the added security measure.