I'm a 29m, no kids, divorced, former heroin addict & 3 years sober. Went through a divorce with high school/college sweet heart, fell into suicidal depression, was fired from a $55K salary 9-5, went from happy hour to heroin. Got arrested and charges dropped on technicality but woke up and wanted to get straight. I reside in FL(of course).
Three years ago I had $800 and "friend 1" loaned me $3500 for 30ft travel trailer which resides on "friend 2's" uncles 15 acre property. Its been a very nice way to live, escape, and save money but I look forward to buying a house in next year.
As of 06/28/17:
Assets: $85,000 in cash, $3,500 in trailer, $4,000 in undeveloped land 2 hrs away, $5,000 in a 401K, $3,000 in HSA, $14 lab mix(probably should be a liability), $2000 shitty 2007 toyota(will be replaced by 2019 with used car), and $2000 in outdoor gear(at used prices).
Expenses: Monthly Expenses: $50 gym, 100 rent, and $90 car insurance.
Equity: I have zero credit and just applied for my first credit card.
Income: 9-5 is $50K (2017 Goal w/ performance bonus: $70K), employment will pay for grad school. Side hustle: marketing consulting $7k yr and did weekend landscaping for a year and half to stay busy.
"Friend 1" & "Friend 2" both own successful (but small) construction companies (interior build out and roofing) and want to start an LLC for flipping in between jobs. They can provide labor and materials at cost and split profits equally by money invested. They have cash but don't want to sink a ton of working capital in as they have big jobs coming up with slow paying obligees.
My questions are: What is the target profit per sq ft and target profit % for flipping a house? Any ways to avoid/ minimize capital gains? Cheap single family homes vs multifamily ROI for flipping and renting out?
I expect housing inventory will meet demand in 2-3yrs in FL and price will stabilize or go down. As of today I would like to flip homes for two years and then wait for prices to drop and buy multi-families as rentals. Is this feasible given current market and capital gains?
What are blind spots I should be aware of?
Submitted June 28, 2017 at 11:27AM by gchbsf http://ift.tt/2tlkmKE
