All Forum Posts by: Wesley Mitchell

Hey I’m just starting out but I’m looking to get into contact with contractors in my area. I’m looking into flipping single family properties that need full rehab. I currently own one property but on my journey to more I would like to find a group to grow with. Any suggestions or advice would be greatly appreciated.

West Philadelphia born and raised, on the play.. you know how it goes. My name is Wesley Mitchell I’m Extremely excited about real estate investment in my city.  I’m newly wedded with no children. I personally already own a property fully owned with no loans out i inherited that’s worth 80k credit score is right around that 640 mark. I personally don’t have any debit other than 9,000 left on my student loans. House hold income is 90k with wife. My final goal is to do 8 single family home flips a year and to hold property that garners 5000 in monthly passive income in ten years.. My current plan is to take out a HELOC (home equity line of credit) out on the house I own for 64k (80%) to use as readily available cash to finance deals. Start a LLC to keep my personal and business separate and give me access to hard money. Find properties in west philly and university city. I want to use Hard Money loans for my first flip. My criteria is single family home sized of over 1500sq. Total investment needs to be 65% ARV and less than 10,000 our of pocket. I joined bigger pockets to connect with people and have already had success with people reaching out and providing information. I’m a sponge for knowledge and although in the beginning I would like to focus on single family flips I wish to learn about all facets of the business.

Congrats I hope time and my wife are in your families position by end of the year. Are you planing to do anything else this year? Or just waiting till the dust settles?

Originally posted by @Lana Lee:

Originally posted by @Wesley Mitchell:

West Philadelphia born and raised, on the play.. you know how it goes. This is my first post on bigger pockets and I’m Extremely excited about real estate investment in my city. 

What I want to know am I jumping the gun on getting into it? I’m newly wedded with no children. Our house hold income is only 90k with my wife making more than me. I personally already own a property fully owned with no loans out i inherited that’s worth 80k credit score is right around that 640 mark. I personally don’t have any debit other than 9,000 left on my student loans. 

My current plan is to take out a HELOC (home equity line of credit) out on the house I ownfor 64k (80%) to use as readily available cash to finance deals. Start a LLC to keep my personal and business separate. Then look for properties. I want to use Hard Money loans for my first flip. With the HELOC available if after the renovation and all I can't sell and need to pay loan.

Questions I have:

Is my plan solid are there gaping holes im missing?

Is finding, buying, rehabbing, listing, holding and selling a property with 60k possible? I’m using calculators from bigger pockets and from FortuneBuilder seems doable but I always see bigger numbers used. 

Does my use of my house make sense? Could I use it in another way to help me? 

And please if anyone has information on the Philadelphia market I’m all ears and would appreciate any and all tips

I think you need to find a mentor for your first flip. It's not as easy as it seems. You have to know contractor and material costsaand many other details. I agree with the previous post that buy and hold is what makes you rich. I would definitely take a HELOC use it for down payment on duplex or triplex, maybe you can even live in one unit (AKA house hack), since you just starting out your family. You will get a favorable rate since it's going to be owner occupied. You can then rent out your current residence.

We recently took a HELOC out on our primary residence at 3.99 fixed rate, 5 years Amortization, 10 draw period and going to use it for down payment on duplex. You just need to make your numbers work.

 Thanks for the information I do want to get into holding property during my 3rd to 5th year I look forward to having the passive income but want to do a few flips to give my self good amount of capital for perusing deals. 

As far as the mentor I have reached out to one big real estate investor in my area that focuses primarily on flipping has a full team of contractors, finance people, the whole nine. I’m currently in small talks about once a month on things and he has help mold me to this point so I will definitely use him as a huge resource in my first attemp. 

I also hope to use you and the people here so thanks a lot for responding and hope we can connect 

Thanks @Account Closed that's a ton of good information. I will definitely get the book estimating rehab cost. And I'll look more closely at the LLC thing. Really appreciate the response. Saying that you have similar numbers gives me some hope

West Philadelphia born and raised, on the play.. you know how it goes. This is my first post on bigger pockets and I’m Extremely excited about real estate investment in my city. 

What I want to know am I jumping the gun on getting into it? I’m newly wedded with no children. Our house hold income is only 90k with my wife making more than me. I personally already own a property fully owned with no loans out i inherited that’s worth 80k credit score is right around that 640 mark. I personally don’t have any debit other than 9,000 left on my student loans. 

My current plan is to take out a HELOC (home equity line of credit) out on the house I ownfor 64k (80%) to use as readily available cash to finance deals. Start a LLC to keep my personal and business separate. Then look for properties. I want to use Hard Money loans for my first flip. With the HELOC available if after the renovation and all I can't sell and need to pay loan.

Questions I have:

Is my plan solid are there gaping holes im missing?

Is finding, buying, rehabbing, listing, holding and selling a property with 60k possible? I’m using calculators from bigger pockets and from FortuneBuilder seems doable but I always see bigger numbers used. 

Does my use of my house make sense? Could I use it in another way to help me? 

And please if anyone has information on the Philadelphia market I’m all ears and would appreciate any and all tips