All Forum Posts by: Steve S.

Depends on how you're doing it. If you're doing it as a live in flip versus just a standard flip. With a live in flip there are some advantages that since it's your primary residence you don't have to pay taxes on the capital gains. That one item is a HUGE margin!

In short... make sure you have the necessary funds either in savings or equity or both.

Determine what work needs to get done and come up with a schedule and plan on how you will approach the renovations. 

Go to your local "buildings permits" office and draw on the necessary permits you will need as well as schedule the inspections and follow up inspections. If you're getting other people in to do any work you will need to know the schedule of the trades people, when they can come in to do the work and where they expect to be at each phase prior to scheduling the inspections.

Roll up your sleeves and get to work. Know that every week you fall behind ends up costing you in labour costs, mortgage expenses and can slow down the whole project if you have to re-book inspections.

I don't see what the problem is... my first 3 units I can get away with 20% and then they require more and more down up to 60% by the 8th unit! CRZY but that's the market..

I just bought 4 washers (2 working and 2 that were broken) all same make for $900 that were coin operated. That gives me two that are working and two I store for spare parts.

If I was you in your situation I would do coin operated. Look around for used ones. Sometimes apartment blocks have the machines on lease and send them back to the company. They're okay units that just have some wear on on them, many if you buy them by the supplier you can get some sort of 1 yr refurbished warranty as well. I'd just go with the coin op as a way to put the coins into an account that will pay for the next washer and dryer when those units break down. Otherwise the money has to come from your own pocket or an inflated rent.

Read some very wise replies on here... there's a lot for you to mull over on this... 

here's my two cents:

1) If you don't like the impression others have of you, you need to change your behaviours.

2) Why are you so concerned what others think of you anyways? Do you have a motive or do you just want everyone to like you? If it's the former, you need to look at #1 again... if it's the latter... well sorry to break the news to you but you can't please all the people all the time mate!

You can also raise your credit score by raising your credit limit... just phone and ask for a bump... you make more than I do so you should be eligible for a "bump" if you've been paying off your card each month. Never hurts to ask.

But like mentioned above.. don't lie.

I'm always apprehensive when a prospective tenant want to do MORE than necessary. Can we say there's a red flag?

Your business, your choice, but think of what you have to gain versus what you have to lose if you take an entire year's rent upfront... 

you're basically asking to change the deal based on financing.... They may be up for it.... since this deal is already past the deadline you may end up having a dead deal and the seller walking away with your deposit. Because things weren't done by the deadline. Tread carefully.... If I was the seller I know what I would be doing in this situation... as it would look to me that you bit off more than you could chew.. I would be walking away and selling since my concern is not your financing but cash in my account!

I don't know your area or market... 

You may have the means or it may be unreasonable I have no idea but here's my suggestions.

1) Look at a duplex or multifamily where you live in the one unit and rent the others out to reduce you living expenses

2) purchase a single family home that you can convert a section of the home to a suite with a separate entrance, rent out the suit and house hack

3) If you're on the road a lot, perhaps as a consolation would be to have short term rentals (STR) like an airbnb situation while you're off on the road. If you're on the road for 2-3 weeks it could be rented out especially in the areas you're looking at, many outdoor enthusiast may be interested. (Just make sure the mortgage you're willing to go for, you can cover with out renting it out at all.. that gives you full control and all the gravy).

4) The flipside to #3 is that you rent short terms when you're not on the road.. it may not build equity but it would be a place you could call home until you have to hit the road again and the money you save on land taxes and maintenance could be placed in an account for a good sized down payment for the place you want.

Main point is.... your "dream house" generally isn't an investment.. it's more like a forced savings plan that may appreciate in value.

Real estate investing isn't every about buying your "dream house" because others will be living there.... dream homes and tenants don't work. 

High end versus "builder grade" appliances will depend on your margins/cash flow as well as your clientele and the rent you're charging.

Personally I rent and flip "basic" units. Certainly nothing high end. Medium to low income housing. From my perspective I absolutely HATE dishwashers. I like my appliances the same way I like my work truck. It should be the most basic model with the fewest number of switches, bobs and dooohickeys. The more options only means the more things that can go wrong and break. I'm also not the sharpest tool in the shed. But with the basic models when something goes wrong I find it a whole lot easier to fix and save the service fees. Basic charge for a repair man to even come have a look is probably $50.. then the til runs if you okay the fix and can easily run you $100-$200 more... For an appliance that at best costs $300 I'm better off selling the unit for scrap and buying another one than getting it serviced.

A few people have mentioned stainless. It looks great and if you're in a higher end of the market it's a nice touch that can put your unit ahead of another in a competitive market.

In my neck of the woods I have had no experience with this product I've seen called "stainless paint" but perhaps this summer when I have a bit more spare time I will experiment with it. If it's as good as my one friend claims it may be a nice cosmetic change to add to the look of a lower grade appliance.

Something always goes wrong... there's ALWAYS hold ups.... love watching those "flip" shows where producers make it look to smell like roses when really they're sitting in a pile of FluugerHeimer!

'bout 4 years ago I thought I was going to partner with someone who was interested in flips and renos. When I started running the numbers he said I was "too high" and we could trim the fat and still make profit. I walked from the partnership. I'm not willing to take on a loss just to take on a project.

Hope it turns around for you... I like the project so far and the narrative is far more enjoyable than most other stuff I have read in recent posts. 

Personally I love reading threads about people who are willing to roll up their sleeves and put in some work. Far cry from the 1000's of "I want to get into REI but have no funds... how can I do this? or I found this fantastic deal.. but I don't have the financing" stuff...

Props to you by earning the equity with a little sweat grease!