Penn
Yellow Jacket
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So my brother wanted a 2nd home in FL- the idea is one day that will be the main house.
He has a house already done in Chicago.
So he bought a place in a pricy celeb neighborhood in Sarasota. He said things there are a joke. Contractors do not want to have a written contract- most of them do not know what they are doing- they are a rip off- the city is a cash machine.
So- it looks like this house he bought- the "I have arrived" neighborhood- is going to be a flip.
Ponder this- the way things work there are more messed up then Chicagoland. That is pretty bad.
We figure he can take 9 trips to resorts- budget deals- for what the property taxes are at the place. ($9000 a year)
I told him that basically he is building a house....
He said to live in that neighborhood. (which is a gated community with a guard) He should be worth 5 million $, and he is worth abit over a million $.
I told him then to flip it. To start now and not wait till he is desperate.
Since I gave him bad advice over the Summer I hope I can be useful now.
Having 2 houses means $18,000 a year in property taxes- this does not include HOA fees, water, sewer, and carrying costs. He looked into putting a mortgage on one of the houses and they will only write for 150-200k- since he is self employed. He was looking at 500k or close to it to have enough cushion.
I told him there will be other houses and other deals.
I hope he can make a nice profit on this house. As fabulous as a celebrity neighborhood is- it is above his means. (for now) Selling the Chicago house is something he does not want to do- because it is done - up the way he likes it- most of his work/income are jobs in Chicago.
On flipping houses he knows Chicago- he knows it well.
On FL he does not know it well. He thinks things are mickey mouse down there- materials cost alot more- contractors are full of BS. Realtors think something that is flipable is not- in that there is not a profit margin.
I wonder how much value the celeb aspect of the location adds to the house.
He has a house already done in Chicago.
So he bought a place in a pricy celeb neighborhood in Sarasota. He said things there are a joke. Contractors do not want to have a written contract- most of them do not know what they are doing- they are a rip off- the city is a cash machine.
So- it looks like this house he bought- the "I have arrived" neighborhood- is going to be a flip.
Ponder this- the way things work there are more messed up then Chicagoland. That is pretty bad.
We figure he can take 9 trips to resorts- budget deals- for what the property taxes are at the place. ($9000 a year)
I told him that basically he is building a house....
He said to live in that neighborhood. (which is a gated community with a guard) He should be worth 5 million $, and he is worth abit over a million $.
I told him then to flip it. To start now and not wait till he is desperate.
Since I gave him bad advice over the Summer I hope I can be useful now.
Having 2 houses means $18,000 a year in property taxes- this does not include HOA fees, water, sewer, and carrying costs. He looked into putting a mortgage on one of the houses and they will only write for 150-200k- since he is self employed. He was looking at 500k or close to it to have enough cushion.
I told him there will be other houses and other deals.
I hope he can make a nice profit on this house. As fabulous as a celebrity neighborhood is- it is above his means. (for now) Selling the Chicago house is something he does not want to do- because it is done - up the way he likes it- most of his work/income are jobs in Chicago.
On flipping houses he knows Chicago- he knows it well.
On FL he does not know it well. He thinks things are mickey mouse down there- materials cost alot more- contractors are full of BS. Realtors think something that is flipable is not- in that there is not a profit margin.
I wonder how much value the celeb aspect of the location adds to the house.
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