Need help deciding - Posted by Zack

Posted by BillW on December 30, 2000 at 19:26:13:

What you’ve left out here is what sort of knowledge you have regarding doing rehabs.
Are you a contractor? Do you know contractors who will give you good deals? Have you done many rehabs?
Also, what type of work do you currently do and how much free time do you have?
Once you know what the answers to these questions are, along with what you feel comfortable doing, you’ll be closer to your answer. Also, you don’t mention what price range property you are comfortable dealing in at this time. Also, although you have some cash, you don’t mention cash flow.
If you’ve got plenty of cash flow, and you’re comfortable with your rentals, do another one. Use as little of your own cash as possible. Save your current cash for the unknown, which ALWAYS occurrs. If you have experience and ability rehabbing, why not try some. If little experience or spare time, you’re probably better off looking for better shape property that has owner problems rather than property needing rehab. Rehab is like fixing classic cars- best if done by someone in the business (with some exceptions of course). If you have low priced workers, if you can get materials at wholesale, if you know the subcontractors and so on, you can make profits in rehab. If not, can the budget on the project handle contractors charging at $50 to $75 per hour plus materials at retail?
Just my feelings on the subject.
Good luck…BillW.

Need help deciding - Posted by Zack

Posted by Zack on December 30, 2000 at 18:52:13:


This site and everyone on it has had a huge effect on my life in the last 6 months. I ve learned alot and I thank you all.

Here is my dilemma. I have 30k cash and a line for 20k. I have a credit score of 621-651 [depending on which u run] and a decent amount of knowledge. I know my market [fairly well] and have target areas I want to invest in. I just can not pinpoint which way I want to go. Here is my problem. My realtor says buy and never sell anything, just re-fi every 5 years and pull out cash. My mentor says only do rehabs for the first year or so. My accountant says do a mix of both.

I am so darn confused and do not know where to get started. I own 2 rentals right now that cash flow ok. I pulled out cash on close so the deals were good. I just dont know which plan is best for me to do next. Should I buy low and rent, buy low and resell, buy,fix,sell, or do a combination?

Any advice or stories on how some of you got started will be appreciated.


Re: Need help deciding - Posted by Kevin Subbert

Posted by Kevin Subbert on December 30, 2000 at 20:26:29:

A good plan is to look for good house deals. Once youve found one, then decide if you want to rent, flip, rehab etc. I think its best to handle each situation case by case rather than trying to make it fit into your plan. You could also pass on a good deal because it isnt exactly what your looking for. A deal is a deal. As long as it makes money, it really doesnt matter how.

Thats just me.
Kevin Subbert