All Forum Posts by: Tiffany C.

@Peter Maclennan

Thank you Peter for your insight!  Your mention of reverse 1031 exchange is the first time I heard of it and have already reached out to our contacts in L.V. for recommendations of experienced brokers in this niche.  Thank you again for opening my eyes and options!  :-)

@Bill Exeter

Your information on how to handle the reverse 1031 is amazing helpful!  I will read through your website and be in contact.

@Franklin Romine

  My husband and I set the goal to retire early.  That means we can live off our rental properties with enough positive cash flow.  After purchasing our first two rentals, we tried to buy our own house 30 mins south of SF, only to get the sticker shock of $800K for a 2bed/1bath, 1200 sq. ft, 1950s house.  We both held very demanding full time jobs in SF; the $800K meant one of our salaries would go into mortgage and maintenance costs, while the other salary would go into living expenses.  That would leave us with no room to travel, do fun things and retire early.  It would also put tremendous pressure if one of us lost our jobs.  

  After much soul-searching and at the blessing of a friend that already lived in Henderson, we found our "way out".  With the housing prices at a fraction of the Bay Area and W-2 jobs that paid 90% of what we made in SF, we can live comfortably while pursuing our goal.  Also, because jobs here are much less demanding - mentally and time wise - we now have the ability to spend more time learning and focusing on RE investments.  

  To answer your question in one sentence, the move was very strategic and we have not regretted it so far.

@Jay Hinrichs

Thank you Jay for your input.

We want to carry paper for several reasons:

1. Greater Positive Cash Flow - We purchased both properties while living in CA and was able to receive a small cash flow. Since we moved out of the state, we have been paying out-of-state tax which cut the cash flow to almost none. With notes, we hope to bring up cash flow by (1) sell the properties at higher prices; (2) charge higher interest rates.

2. No Remote Management - We have been remotely managing our property manager on weekly basis. The time and effort spent on management is not worth the low cash flow we are receiving.

3. No Stress on Finding 1031 Exchanges - Our initial thought was to 1031 the CA properties for NV properties, but the 45-day limitation makes it difficult to find the "right" properties.

We welcome your thoughts and suggestions. :-)

please see my response below

We have been looking into selling a couple California (Bay Area) properties using seller financing and a Wrap Mortgage.  Of course we've gotten many reports and opinions from many different people that questions the legality and the "due on sale" clause.

I'm not look to discuss any of those details here.  

I would like to ask: is there anyone out there who has successfully done wrap mortgages in California and can you recommend any contacts I could begin a conversation with as far as executing a wrap mortgage in CA (or whatever it's legal name might be in California).

Thanks Everyone,

Hello,

  Does anyone in the Las Vegas/Henderson area know and can recommend a licensed general contractor who is good and experienced working with investors.  

I have a SFR in contract that will close on Jan. 9, 2015. This is a single family resident located in Paradise, around 2000 sq. ft, built in 1989. The big items in this rehab includes:

  -- landscaping - trim trees, remove weeds

  -- remove popcorn ceiling, interior paint

  -- kitchen/master bath/guest bath - replace counter top and sinks, re-paint cabinets, replace lighting and appliances (kitchen only)

  -- garage - replace garage door, remove existing carpet (yes, 50% of the garage is covered in carpet), paint

  -- doors - replace all doors 

  Would really appreciate your recommendation(s)!  Thank you!

Thank you Phil for your advise and confirmation! 

We have budgeted $400 for all yard work, including cleaning up the yard and trimming back tree branches.  If additional work needs to be done I will definitely not hesitate.

I met with the GC mentioned above and revised the rehab items.  However, during our conversation I learned that he no longer has the GC license and insurance as he hasn't had much work lately and it was too expensive to up-keep.  Lesson Learned #1: Ask for GC license & insurance info up front.

Fortunately I was able to meet with GC#2, who is licensed with insurance.  His quote is similar to GC#1 but includes appliances. 

I will keep everyone updated on the progress of the rehab, including photos of before, during and after.  

Thank you and Happy New Year!

THANK YOU Bob, J. Scott, Guy and Larry for your most valuable input.  

Currently I'm creating the SOW and Budget based the templates/examples shown in J. Scott's "The Book on Flipping Houses" (chapter 12 & 13).  Love this book!  It's been my Bible since I started two months ago.

I am incorporating all of your suggestions and comments to address the details of each item with GC #1 tomorrow and GC #2 later this week.  Since the house after-renovation will be targeted towards non-first time buyers/middle-class families, my plan is to use medium grade material for the kitchen and master bath, the rest with mid-lower grade material. 

I will post more specific numbers after my discussion with them and welcome any additional thoughts from you.

Thank you again!!  I love the positive, supportive and informative environment BP creates!  I hope when I become seasoned enough one day, I can give back the same way you are supporting me now.

Happy New Year! 

Hello,

  I am a new member to Bigger Pockets and have already learned a great deal from the forums and podcasts.  I'm truly grateful for the information.  

  I am also a new investor in flipping in the Las Vegas/Henderson, NV area.  Currently I have a property under contract  - the house was built in 1989, 2000 sq. ft, 3 bed, 2 bath, in good condition but needs a lot of updating/upgrading to bring it into the 21st century.  So far I received quotes from two local general contractors.  Below are the details of the quote from one of them (#1-16).  

  As a new "flipper", I'm not 100% sure if the GC is over-quoting me.  I welcome any comments and/or recommendations you have.  It's scary the first time but I'm excited and nervous at the same time.  Any help you can offer is greatly appreciated!!!

Thank you in advance,

Tiffany

1. $850 Landscaping = There are weeds between rocks so we will have to remove rocks to get get to them. Clean out the front planting bed by the front window, remove weeds and put in 3-4 new plants. Add dirt, wood chips, hide irrigation system. Trim the small palm tree in front. Remove the big tree in the middle of the back yard to open up the area, trim all trees in the back yard. Remove trash.

2. $3000 Removing popcorn ceiling = this may take about 7 days, cover up all the floor, remove all ceiling fixtures, wet ceiling let soak, scrap off, clean up, let dry completely 2-3 days, add new texture, paint.

3. $3000 Paint the house 2 tones, paint front door white

4. $4000 Master bathroom = removing old sink, counter, and fixtures. Install granite, new sinks and faucets, install new lights, clean up mirror, paint cabinet white. Install new tiles for shower and bath tub, cut out the wall to make room for a door going to shower and toilet. Please note adding a door for toilet alone make the space claustrophobic and will require adding more lights and fans, therefore, I think a door to shower and toilet is better.

5. $450 = Master bedroom = install new ceiling fan, upgrade entry doors.

5. $3500 Kitchen = removing old counter and install granite counter and full back splash. The back splash will go up all the way to the cabinet and also extend into the window area, paint bottom cabinets white, install new hinges, knobs and handle, remove old excess wiring, remove the ceiling fan and install track lighting, install can lighting over the kitchen sink. add new kitchen sink and pull out faucet.

6. $1200 Downstairs bath = install granite counter, new sink and faucet. Install new toilet seat, new bathroom door. Please add $300-500 for new shower door depending on styles.

7. $ $500 Downstairs bath = install new tile flooring

8. $ $300 Bedroom 1 = replace missing closet doors, upgrade entry door and knobs

9. $150 Bedroom 2 = upgrade entry door and knobs

10. $ $800 fireplace = upgrade the fireplace area, removing and installing new tiles

11.$500 = replacing lighting = front door, ceiling, stair way, hall way

12. $750 = Office room = fix the bend on the wood walls, install dry wall, texture and paint. Run wire, add new light and fan switches

13. $450 Laundry room = install new upper longer cabinets, install utility sink

14. $700 = garage = correct wiring to code, relocate lighting, add vents to water heater room, add light switches, install self closing door per code required, remove old carpet, pressure wash.

15. $850 Garage door = replace, install new garage door, = current garage door has cracks.

16. $400 = change entry area tiles

Total = $21,400