Flipping and Rental property thread

ashleyjohnson · Post by **ashleyjohnson** » Wed Jan 14, 2015 2:16 pm

Flipping is for professionals. Not like the 30 min show on HGTV. I've some co-workers who used to do it before they got burned during the RE downturn.

They buy and rehab themselves . They install drywall, paint, re-do bathrooms, install flooring, electrical work, kitchen cabinets, etc.

smithjames2017 · Post by **smithjames2017** » Tue Mar 15, 2016 12:52 pm

I would like to suggest that Dothan, AL is the best and safest place to live in the USA.

puneri_punter · Post by **puneri_punter** » Thu Mar 17, 2016 12:10 am

I would avoid anyplace in south. Just see one of the Trump rallies.:emdgust: In my opinion, stick with NY, NJ, CA or at the most WA.

techynt · Post by **techynt** » Thu Mar 17, 2016 6:16 am

Bad things I have heard about CA:
1. Getting trashed by Illegal immigrants
2. Pretty soon politics over there will be all about appeasing hispanics
3. Public employees make it like bandits. Even their retirement benefits are very generous it seems, some get paid $200k/year it seems

puneri_punter;626227I would avoid anyplace in south. Just see one of the Trump rallies.:emdgust: In my opinion, stick with NY, NJ, CA or at the most WA.

MunnaBhaiNRI · Post by **MunnaBhaiNRI** » Fri Mar 18, 2016 10:28 am

I am thinking of buying a duplex to live in one unit and renting out one unit. Whats good and bad of this idea?

dbs · Post by **dbs** » Fri Mar 18, 2016 7:45 pm

MunnaBhaiNRI;626420I am thinking of buying a duplex to live in one unit and renting out one unit. Whats good and bad of this idea?

Excellent idea.If you get good tenants, you will live in heaven. Bad tenants and it shall be hell.

tcpip007 · Post by **tcpip007** » Sat Mar 19, 2016 12:31 am

k11;521441Coming to the deal I posted.
I am dropping two of them.

One of them was a garden unit rents would not be good, so dropped it. Recalculated it and got only 20%. Not financable either.
One I won on the bidding war (after 2 rounds), revaluating I offered too much, did not check the comps properly. My intial offer price is good.
But I offered 10% more than that, which is well above sold prices in the last 1 year.
One of the units is going into multiple offer, will stick to my price. I know the comps well here.

Back to the drawing board.
Started looking at rehab multifamily options and low end properties but not in gang active places.

Property 1 -
Ask 65K, thinking of offering 40K.
Fixing it up - 20K.
Rents expected - 3000 to 3200.
Expenses - 1300.
Net - 1700
Farway location, need to get a PM. That will reduce returns and adding higher vacancy will impact returns.
Still can get 1200 a month after taking this into account.

Property 2 -
Ask 120K cash only says negotiable, offer 80K
Fixing & closing - 25K.
Rents - 2700
Expenses - 1200
Net - 1500
Good location, next to train and highway easy ride to downtown.

Property 3 -
Ask 199K sits on MLS, 160K would be a great price.
10K is needed to get it ready.
Rents - 2900
Expenses - 1100
Net - 1800
This is in a slight better location. Near a famous neighbourhood attractive to youngsters.
Can even get 3600-3900 in rents it major renovation is done.

Property 1 and 2, might look at buying through LLC. I got couple of friends interested.
Property 3, buy with a loan.

Few more options. But not considering it now.
Sent out note to private sellers to see if there are any off market deals.

Which zipcodes are the properties in ?