All Forum Posts by: Joe Butcher

I don't know what level of experience you have estimating rehab costs, but are you SURE of your numbers? Did you have a GC walk the property with you?

Is this off-market or through a realtor? Are you factoring in closing costs as well? How about holding costs? (utilities, insurance, etc)

J. Scott did a great blog post about holding costs recently that is a real eye-opener.

Are you taking a hard money loan or paying cash?

There's a lot of expenses that fall outside of the ARV/Rehab cost/Purchase price scenario that you may want to factor in.

Yes, it sounds like a good deal, but you may want to look at the numbers again.

I went to the one in DFW. It was good. Was basically like a giant REIA.

I found it good for networking. Met a lot of folks I wouldn't be able to meet otherwise, unless I wanted to spend my time going to every REIA in town.

I'd be surprised if you didn't come out of it with some useful info or a few contacts.

Yikes! That was one hell of a rescue.

Welcome to BP!

There's no cut and dry answer. Every deal is different and every region is different. And if you're buying a property for $35k you can bet theres going to be some repairs.

Just from your own numbers you are giving you already need 15K.

Once again, set a goal for savings (say 15-20K over 12 months or whatever you can afford) and while you are doing that start networking and educating yourself. Go out and look at properties. See whats out there. Network with rehabbers and buy and hold guys in your area and ask how they got started and how much money it took them. Once you do that you will start gaining more clarity and insight as to what it will take for you.

I don't know about "NO money".....you're going to have to have SOME kind of skin in the game.

I took a part time job to help finance my investing. Why not focus on saving money for the next year and whilst doing so, educate yourself and network as much as possible, especially if you're new to the game.

Go to your local REIA and network with RMLO's that work with investors. Network with hard money lenders. But even with them you still need some money.

Learn about creative financing as well. Ben Leboyvich has some great blog posts about it.

@Aaron Montague

Thanks. I will definitely call the insurance co, didn't think of that!!

I have been so consumed with contracts, negotiations and rehab bids that I didn't think to see if the swing set was even in good condition. Given the deferred maintenance of the rest of the house I wouldn't be surprised if it's a "put it on craigslist" type situation.

Joe Butcher, Dallas, TX

The house I am about to purchase for buy and hold has a kids swing set in the backyard. Backyard is fenced.

Is this a liability? Should I go ahead and get rid of it, or is this something that may be attractive to tenants with kids?

Thanks

Joe Butcher, Dallas, TX

@Matthew Parent Consider this: Being that you said the price is close to the ARV, what would be the benefit to an investor?

My co-workers know, which could be beneficial as one day one of them may be in a distressed situation and need my help.

One of my coworkers received one of my letters, which was great...I never knew she owned three rental properties! I turned her on to BP and she loves it. Now we talk RE whenever we run into each other.

I don't care if the "big boss" at my job knows or not. I do a good job and always score big on my yearly evaluation.

My job is unique though, and what is acceptable for me may not be for you.