Unfinished Features Can Create Problems with the Sale

Question: “We’re buying a home and the owner is in the middle of redoing the kitchen. He started the demo work (sink, counters, some cabinets) but not the actual remodel. We’re getting a good deal because we said we’d take the kitchen as is. Will that create any problem with the sale?” Answer: If you’re
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Does One Fix-and-Flipper Ever Sell to Another?

Question: “I was reading some discussion of how prevalent flipping houses is now. Do houses ever get bought by people looking to “flip,” who then upgrade them and sell them to other people looking to flip, who then upgrade them again?” Answer: Rarely. Most house flippers typically operate on minimum profit margins. If you add
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Investing in 4 Houses vs. a Fourplex

Question: “Which makes more sense as an investment, buying 4 houses or buying a 4plex?” Answer: That’s a great question. I own several fourplexes myself. I’d go for the fourplex because it should give you better cashflow and is easier to manage than 4 separate houses.
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How to Know if You’ll Profit from a Flix-and-Flip

Question: “How much under-market do I need to buy a home to make money on a fix-and-flip?” Answer: There’s no simple formula, because of all the variables: Financing Fix-Up Cost Fix-Up Time Added Value Market Time Negotiation Transaction Management Appreciation – Financing – Obviously, you want to get a loan at the lowest cost possible
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Can You Avoid Taxes with a Fix-and-Flip?

Question: “I’d like to start buying fixer-upper homes and reselling them for profit by exchanging them, so I can avoid taxes…” Answer: I know you’re not asking a question, but I have two important comments for you… #1: There is HEAVY competition for “fix/flip” properties like you want to buy. Last week a man came
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Keeping an Expensive San Diego Home as a Rental

Question: “Hi Gary. We have a pretty nice house in UC, worth around $850,000. We want to scale down and buy a condo. Do you think we should keep the house as a rental?” Answer: Expensive homes make no financial sense as a rental in San Diego. Your cash on cash return will likely be
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Don’t Worry About Deflation When Buying a Rental

Question: “I’m a little afraid to buy a rental with everything going on. I’m afraid we’ll have deflation which will push rents down. What do you think?” Answer: I’m by no means an economist, despite a BA in Economics from UCLA. A little knowledge can be dangerous, but I’m willing to share my opinion. The
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What Is Debt Coverage Ratio?

Question: “I’m a small-time real estate investor. I have a couple of rental condos in Mira Mesa and North Park, but I’d like to trade into an apartment building. I’ve been talking with people and asking a lot of questions. There’s a term I’ve heard called debt coverage ratio. What is that?” Answer: You’re getting
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Buying a Foreclosed Duplex Directly from a Bank

Question: “I’d like to find and buy a foreclosed duplex directly from a bank. Any advice on how to do that?” Answer: Having sold close to 800 foreclosures for banks, I definitely know the answer to your question. If the property is owned by a major bank, they have a process they go through before
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Can You Do a 1031 Exchange on a Fix-and-Flip?

Question: “We just bought a fixer-upper house to fix and flip. The repair work is about done. We want to sell it and buy another and not lose a lot of $$ to the taxman. Can we do one of those 1031 exchanges so we don’t pay any taxes?” Answer: Two agents that worked for
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