Home Buying & Real Estate Thread

[stork]

I used $125 per sq ft (6,900). That gave me $862,500. I ran it up to 900k to include plans and permits and some change order room. I then added 10% for contingency.

It' is zoned mixed use

that's not going to be the most accurate. the garage space doesn't count toward sq ftage, but obviously has to be built, + landscaping.

1-3 builder estimates are probably ideal. I believe mixed use usually implies retail/office/residential. I would speak with the planning commisson/department to make sure that's covered.

the cover letter should have a mock building design by the architect. i don't know if that's costly to get, but if you want 3-4 investors to invest 333K in funds it's good have the whole project thoroughly researched, not sure if that's in your blueprints, I skimmed it. thing has to be air tight, investors are automatically going to look for faults.

also good to set up the LLC & biz accounts now, the more prepared you are the more serious the project looks.

I think it's key to have time tables clear as far as land purchase, permit approval, breaking ground, completion etc..

keep us informed if anything happens, sounds awesome.

 

[HankHill]

ekrev98

Do you do exterior renovations as well? How much would it cost to removal a gravel/dirt yard and replace it with grass?

Besides real estate listings and flipping, My company does home design and remodels. We currently have a client we are doing a 203k rehab for.

Costs depends on what the size is, how much we have to haul, are we adding irrigation, etc...? What area are you in?

Was more of a general question. I have a friend looking at houses and the previous owner of one "extended" their drive way by laying gravel stones on the grass to park trucks and RVs.

She was trying to get an idea if it was worth considering that home if the cost of redoing the lawn was would be too out of hand.

 

[ekrev98]

Was more of a general question. I have a friend looking at houses and the previous owner of one "extended" their drive way by laying gravel stones on the grass to park trucks and RVs.

She was trying to get an idea if it was worth considering that home if the cost of redoing the lawn was would be too out of hand.

Your friend is better off getting some workers/laborors for the day. Shouldn't cost too much and should only take a day for them to shovel the gravel and lay the sod.

 

[dam itz lou]

BP is extremely addicting.

 

[capital sb]

exactly why I had to give it a break. I want to focus on paying down debt first and putting out some apps before jumping into RE.

I have gained a ton of knowledge though.

Seems like the webinars are better now, if anyone has the youtube link to the last webinar

can you post it in here? I might still have the youtube page saved.

I've been slipping on the podcast I should atleast stay up to date with them. I'm probably 4 months behind now 

.

 

[Mark Antony]

I think you guys are overhyping Detroit as some sort of sure thing.. It's not. There are a lot of terrible areas, that you don't want to buy in regardless of whether Detroit as a whole bounces back. Prices are bottoming out for a reason. Like someone said, they're giving homes away..

If you're familiar with the areas, and do your due diligence, I'm sure there are great investments there. 

See the other areas that have been gentrified are close to regions that flourish, can't say the same for NY. Neighborhoods by NY, DC, LA etc. are a good look overall. Detroit i'm not so sure.

 

[capital sb]

Podcast 169 with David Greene is excellent, learned some new things about note investing and using that cash flow to pay down rental mortgages faster. Once that mortgage is paid off refinance and do it again. Definitely an interesting approach that creates compounded interest.

David is a cop from San Fran that has 14 properties and owns notes as well. He has properties in AZ that he has never seen in person before.

Can't be scared to do out of state investing if your local area doesn't make sense.

 

[slicknick951]

Podcast 169 with David Greene is excellent, learned some new things about note investing and using that cash flow to pay down rental mortgages faster. Once that mortgage is paid off refinance and do it again. Definitely an interesting approach that creates compounded interest.

David is a cop from San Fran that has 14 properties and owns notes as well. He has properties in AZ that he has never seen in person before.
Can't be scared to do out of state investing if your local area doesn't make sense.

Im actually listening to it now. I love that there are so many different strategies you can take to get to whatever your goal is.

 

[capital sb]

Im actually listening to it now. I love that there are so many different strategies you can take to get to whatever your goal is.

Yeah, thats why I love BP it is literally nothing but a bunch of case studies. You can pick and choose what type of investing will work for you. Not some fake guru BS, they are regular people that started from the bottom.

 

[dam itz lou]

Podcast #73 talked about investing out of state when your area is too expensive. A lot of good info in there. I wish house hacking was an option here for me.

 

[slicknick951]

Podcast #73 talked about investing out of state when your area is too expensive. A lot of good info in there. I wish house hacking was an option here for me.

Man thats what I should have done as soon as I left my moms house at 19. Buy a POS duplex in the bronx and stick it out

 

[dam itz lou]

Man thats what I should have done as soon as I left my moms house at 19. Buy a POS duplex in the bronx and stick it out

I hear ya. I live along the L line. I knew a long time ago the hipsters were heading this way. I just didn't have the dough.

 

[Mark Antony]

Podcast #73 talked about investing out of state when your area is too expensive. A lot of good info in there. I wish house hacking was an option here for me.

Man thats what I should have done as soon as I left my moms house at 19. Buy a POS duplex in the bronx and stick it out

My econ teacher gave me the blueprint at 20 and I never listened. Dude started off at that age buying a 5 unit spot, living there for free and doing all the maintenance to doing strip mall and big box retail real estate on top of being a professor.

 

[luckyluchiano]

My econ teacher gave me the blueprint at 20 and I never listened. Dude started off at that age buying a 5 unit spot, living there for free and doing all the maintenance to doing strip mall and big box retail real estate on top of being a professor.

What 20 yr old college student has access to capital to cop a 5 unit spot? That didnt already come from money lol.

 

[HankHill]

I've read plenty of articles on how such-and-such "bought their first home right out of college so it's possible for you". But when you read the article, they talk about parents gifting them $10k to add onto their savings or that they didn't have loans coming out of college. Those are always the ideal cases and don't usually apply to people looking at those articles lol.

 

[luckyluchiano]

I've read plenty of articles on how such-and-such "bought their first home right out of college so it's possible for you". But when you read the article, they talk about parents gifting them $10k to add onto their savings or that they didn't have loans coming out of college. Those are always the ideal cases and don't usually apply to people looking at those articles lol.

exactly or that one kid who "travels the world for free from credit card points" but they dont talk about his parents paying for his flights initially so he could rack up points.

The most a college kid could do is invest their Refunds if they even get one, and the refunds arent from Student Loans. Lol we gotta stop with these fairy tales. In college my credit score was in the 700s but thats because I paid bills on time, but my income wasn't squat so I wouldn't even be able to get a real loan to be able to make moves, and both my parents got laid off at the same time in college so I def couldn't ask them for bread.

 

[Mark Antony]

My econ teacher gave me the blueprint at 20 and I never listened. Dude started off at that age buying a 5 unit spot, living there for free and doing all the maintenance to doing strip mall and big box retail real estate on top of being a professor.

What 20 yr old college student has access to capital to cop a 5 unit spot? That didnt already come from money lol.

He bought it with no money down. I forget the circumstances.

 

[luckyluchiano]

He bought it with no money down. I forget the circumstances.

Got it, most No Money down type of Grants/Loans I have seen calls for you to be a the only resident of the place, and even then the Loan Amount would be income based. That said different things vary city and state to state so who knows. But I know for many folks who are first gen college kids some of this stuff is easier said than done.

 

[Mark Antony]

Most def, but I didn't even look into it to be told "nah".

 

[ekrev98]

Opened it up and designed the kitchen today.

 

[pdino]

Quote:

What 20 yr old college student has access to capital to cop a 5 unit spot? That didnt already come from money lol.

Can go FHA and put 3.5% down. If you're somewhere in Wisconsin, Ohio, Detroit, spots in Georgia etc.

Just did a quick search, I don't know anything bout the area, but here's a decent triplex in Cleveland, Ohio. 6 bed/3 bath for 70k. Use FHA loan, get it for 2500$ + closing costs or have it rolled into your loan. Location is everything. Grants available based on income and first-time homebuyer financing that is favorable.

 

[luckyluchiano]

Quote:


Can go FHA and put 3.5% down. If you're somewhere in Wisconsin, Ohio, Detroit, spots in Georgia etc.

Just did a quick search, I don't know anything bout the area, but here's a decent triplex in Cleveland, Ohio. 6 bed/3 bath for 70k. Use FHA loan, get it for 2500$ + closing costs or have it rolled into your loan. Location is everything. Grants available based on income and first-time homebuyer financing that is favorable.

FHA loans isn't the issue, the size of the mortgage one would get is.What kid in college has a job where they will get approved for a loan big enough to get a property where they won't have to spend even more money fixing it up? IMO this is a case by case thing and shouldn't be talked about on some "all college kids should do this", I`m not saying it is how we are saying it is, but the context makes it sound easier said then done. I live in ATL, you're not getting a multi unit home/apartment on a small mortgage that won't require you to put thousands of dollars in to fix up. And the tiny rural areas you may get away to do that at, dont have any major universities or industries where you'd see a college kid be able to pull that off.

A recent college grad sounds more realistic than a college kid. lol

 

[pdino]

^Your right, it's a case by case basis.

FHA loan requires a home inspection done by an FHA appraiser. The property cannot be purchased unless this inspection takes place, and it is deemed "livable". Water, heat, no cracks on windows, glass, etc. The seller will pay for all renovations if they want to get a deal done, not the buyer.

If you can get a lender to approve you with the future rental income in mind or get a co-signer, works out as well.

I've heard ATL is one of the better places to invest right now

 

[luckyluchiano]

^Your right, it's a case by case basis.

FHA loan requires a home inspection done by an FHA appraiser. The property cannot be purchased unless this inspection takes place, and it is deemed "livable". Water, heat, no cracks on windows, glass, etc. The seller will pay for all renovations if they want to get a deal done, not the buyer.

If you can get a lender to approve you with the future rental income in mind or get a co-signer, works out as well.

I've heard ATL is one of the better places to invest right now

Yea ATL will be good for the next 10 yrs, then after that I think things will start to sky rocket.

 

[HankHill]

^Your right, it's a case by case basis.

FHA loan requires a home inspection done by an FHA appraiser. The property cannot be purchased unless this inspection takes place, and it is deemed "livable". Water, heat, no cracks on windows, glass, etc. The seller will pay for all renovations if they want to get a deal done, not the buyer.

If you can get a lender to approve you with the future rental income in mind or get a co-signer, works out as well.

I've heard ATL is one of the better places to invest right now

It was also posted that the guy got the multi unit home with 0% down.