Man... it took everything I had to prep, film, edit, etc pulling all nighters to get videos out. Then mix in kids to the scenario and I didn't find a sustainable way to keep going! I see you're at almost 10k subs, I'm sure I could learn a thing or two from you! How did you stay consistent?
Unbelievable value. The breakdown of this video is so practical and genius at the same time. No one else out there is sharing this type of value. Keep it up!!!
I appreciate it big dog!! I desire for others to experience the same benefits I have through real estate investing so I want to give away as much value and detail as possible.
I learned a lot watching your video today. I'm working getting my first duplex. I got pre-approved last week. DIY is something I'm nervous about, but I'm willing to learn to save me money and build up my portfolio. Thanks for the knowledge.
Was gonna ask the appraisal question but you mentioned it in the end. Awesome work you did. Im looking forward to starting this business with my wife soon.
This video was great, so practical. I love how you did a lot of the work yourself, usually these videos don't talk too much about where you can find savings for the remodel but you covered that AND THEN SOME! What a great video! Keep it up Dan!!!
I love how everything turned out, you did a great job! The only thing that I would do differently is the flooring, I would have chosen natural wood color flooring or polished the concrete.
@@danielphilpot7822 For removing thinset: angle grinder with a masonry wheel is my best friend. I have a nice De-Walt angle grinder from a charity auction. It does the trick! I also found a giant 45 pound angle grinder with a 7" cut off wheel from the 1940's-50's...It's a beast! It has no safety features to speak of, so it frightens me a little. It may work even better... (although, watching this video at 2x speed, I slowed it down and realized how much tile you were actually working with. You made the right call! Opportunity cost is also a big factor - for example, if you can work 8 hours and make $40 an hour, and you can hire someone to do your other work for 8 hours at $20 an hour, you are still $20 an hour ahead, but you probably already knew that.) Moral of the story: an entrepreneur can never have enough tools, cheap tools, expensive tools, doesn't matter, as long as they get the job done and you get your money out of it. They all pay for themselves eventually, as long as you keep using them! I'm even in the process right now of designing and patenting my own tool! Tools are what gets the entrepreneur where they need to go, from a tool as simple as a pen, to lathes, and welders, bulldozers and software packages. Use them all! You won't regret it. Toilets: Toilets are the number one thing I'm always fixing. Replacing toilets is always a good idea. Never use the wax rings. Replace every single one with a rubber ring. I have been doing that for the last 15 years, and none of those have ever had an issue. They are re-usable, and much cleaner. Building materials: stay away from Habitat for Humanity. It's way too tempting. Buy exactly what you need, or don't buy it at all. I have found some great things there, but also wasted a lot of money and effort going there. It makes me sad to say that it's really hit or miss. Stick to the shopping list. Drywall: You were very fortunate, and smart when working with your drywall. That's one thing I always look for when buying houses. You want to have good drywall. It's a pain to fix. One really good tip, two words, I learned in drywall repair: Silica Sand. You mix it in with your paint and roll it on and it creates a texture that hides almost everything. Painting: I have painted many rooms. I have used brushes, rollers, and sprayers. I have used 5 gallon bucket paint sprayers and hand-held sprayers. My favorite sprayer is the Graco True Coat 360 Airless hand-held paint sprayer. It retails for about $160, but the quality is just right where it won't disappoint. I painted a 4 bedroom house in 24 hours one time. That was excessive, but completely worth it. The 5 gallon bucket sprayers waste a lot of paint and are difficult to clean. I have 2 in my garage that have only been used once. I always go for the hand held one. Tenants: If there is a bug problem, go over there and spray it yourself. Keep in contact with your tenants, let them know you are there to serve them. I always end up fixing some other minor thing while I'm over there spraying for spiders or ants, even though I was not planning to. Always keep a multi tool in your pocket, and a hammer, flash light, and measuring tape in the back of the car. I probably shouldn't write a book on this, so this is where I will end. You are doing really great! You are thinking like a land lord.
Great stuff Philpot! Quick question: Were all the remodel expenses out of pocket expenses (I.e. did you just have that extra $20K handy or was it a loan?)? Is there any kind of financial jujitsu that can be done to obtain a tax benefit on a remodel/renovation?
Hey Phil! Great questions. I used a few different strategies. First of all I did it over nine months so I was able to pay for it as I went. However I did use two Synchrony construction credit cards that were no interest for 12 months. I have since paid both off (incurring no interest) but they’re nice to utilize for larger expenditures such as flooring or HVAC. And I didn’t touch on tax benefits in the video, but I probably should have. In short, yes, I definitely utilized some tax jujitsu! That manifested in the form of cost segregation. Real estate is divided into certain categories in order to depreciate it accordingly. The overall structure on a residential real estate property is subject to 27 1/2 year straight line depreciation. However, there are certain interior components that can be depreciated over a much shorter timeframe such as five or seven years. These items include electrical system carpeting, millwork, appliances, fixtures, etc. Using cost segregation you can write off larger portions of your remodel expense sooner which offset your active income from the property to essentially reduce your tax burden to nothing. If you think it’s valuable I could make a video specifically on that. It’s a fascinating concept, and one that many high net worth individuals have utilized. Thanks for the question, Phil!
@@danielphilpot7822 This would be great to go over! Maybe include some info on whether you had to set up an LLC to recognize those tax benefits as well? And if not, what kind of forms/schedules you used. Thanks Philpot! Looking forward to the new content!
Only because he did most of the work. The thing is, this guys knew what he was doing. Most people attempting after watching a few videos will end up doing more damage than anything. If you were to hire most of this work out it probably would be around 70k with labor. However he did find parts for very cheap so that was a huge benefit and cost saver as well!
Thought about it briefly, but it cash flows so well that it would be hard to replace with another asset if I sold. Plus, it was a lot of work! Want to enjoy some positive cash flow, keep it, then start another one 😊
Man, I'm working on pulling something like this off. This video is so valuable. Why did you stop making videos?
Man... it took everything I had to prep, film, edit, etc pulling all nighters to get videos out. Then mix in kids to the scenario and I didn't find a sustainable way to keep going! I see you're at almost 10k subs, I'm sure I could learn a thing or two from you! How did you stay consistent?
Unbelievable value. The breakdown of this video is so practical and genius at the same time. No one else out there is sharing this type of value. Keep it up!!!
I appreciate it big dog!! I desire for others to experience the same benefits I have through real estate investing so I want to give away as much value and detail as possible.
Thank you so much. I have a 4 plex and my long term tenant is moving out and I need to renovate the unit as cost efficiently as possible.
Of course! Glad it could be of assistance
I learned a lot watching your video today. I'm working getting my first duplex. I got pre-approved last week. DIY is something I'm nervous about, but I'm willing to learn to save me money and build up my portfolio. Thanks for the knowledge.
Love it man! Thanks for letting me know it helped.
This was great! I am looking into buying a multi family home. This made the responsibilities more practical. Very in depth! Thank you
You bet!! Best of luck on the multi fam property
Was gonna ask the appraisal question but you mentioned it in the end. Awesome work you did. Im looking forward to starting this business with my wife soon.
Heck yeah! You can totally do it!
love the transparency!!! thank you
You bet!
You have done a ton of work and the results show that. Keep up the great work.
Thank you! It was a blast to make a video on it!
This video was great, so practical. I love how you did a lot of the work yourself, usually these videos don't talk too much about where you can find savings for the remodel but you covered that AND THEN SOME! What a great video! Keep it up Dan!!!
Thank you! I appreciate that. I tried to give as much depth as possible. 💪
I love how everything turned out, you did a great job! The only thing that I would do differently is the flooring, I would have chosen natural wood color flooring or polished the concrete.
Thank you! Polished concrete is a good option with minimal maintenance. Great idea for the next one!
That is absolutely beautiful! & the transparency is appreciated !
So glad you liked it!!
Love it! Great video man! Hard to find content that really digs into the weeds like this.
Thanks David. 9 more bangers coming down the line in this series!
Keep killing it. Very transparent video.
Thanks! I appreciate it, you too!!
Thanks for the video. I definitely would have chosen different color schemes. Nice breakdown!!
Thanks for watching!
Wow this is so amazing! That’s for this I loved it!
sweet remodel man! congrats!
Thanks! Appreciate it!
Great Stuff Philly! Make moves not excuses!
Yes sir 💪💪 anyone can do this stuff!
Great job! We did the exact same thing with our appliances when we were building our house. Lowes held them for about 9 months for us lol!
Thanks for sharing! Now I don’t feel entirely crazy 😋 If it can save you over a $1,000, it is a no brainer!!
You’re the man!!
very good video! Thank you
Very nice work! I plan on getting my first property, hopefully a four-plex in august. I’ll for sure come back around to this video!
Heck yeah man! That’s amazing
You end up getting a fourplex?!
Currently in the process of buying a triplex and looking for inspiration
Looks amazing! Great job!
Thanks Josh! Any insights or recommendations??
@@danielphilpot7822 For removing thinset: angle grinder with a masonry wheel is my best friend. I have a nice De-Walt angle grinder from a charity auction. It does the trick! I also found a giant 45 pound angle grinder with a 7" cut off wheel from the 1940's-50's...It's a beast! It has no safety features to speak of, so it frightens me a little. It may work even better... (although, watching this video at 2x speed, I slowed it down and realized how much tile you were actually working with. You made the right call! Opportunity cost is also a big factor - for example, if you can work 8 hours and make $40 an hour, and you can hire someone to do your other work for 8 hours at $20 an hour, you are still $20 an hour ahead, but you probably already knew that.)
Moral of the story: an entrepreneur can never have enough tools, cheap tools, expensive tools, doesn't matter, as long as they get the job done and you get your money out of it. They all pay for themselves eventually, as long as you keep using them! I'm even in the process right now of designing and patenting my own tool! Tools are what gets the entrepreneur where they need to go, from a tool as simple as a pen, to lathes, and welders, bulldozers and software packages. Use them all! You won't regret it.
Toilets: Toilets are the number one thing I'm always fixing. Replacing toilets is always a good idea. Never use the wax rings. Replace every single one with a rubber ring. I have been doing that for the last 15 years, and none of those have ever had an issue. They are re-usable, and much cleaner.
Building materials: stay away from Habitat for Humanity. It's way too tempting. Buy exactly what you need, or don't buy it at all. I have found some great things there, but also wasted a lot of money and effort going there. It makes me sad to say that it's really hit or miss. Stick to the shopping list.
Drywall: You were very fortunate, and smart when working with your drywall. That's one thing I always look for when buying houses. You want to have good drywall. It's a pain to fix. One really good tip, two words, I learned in drywall repair: Silica Sand. You mix it in with your paint and roll it on and it creates a texture that hides almost everything.
Painting: I have painted many rooms. I have used brushes, rollers, and sprayers. I have used 5 gallon bucket paint sprayers and hand-held sprayers. My favorite sprayer is the Graco True Coat 360 Airless hand-held paint sprayer. It retails for about $160, but the quality is just right where it won't disappoint. I painted a 4 bedroom house in 24 hours one time. That was excessive, but completely worth it. The 5 gallon bucket sprayers waste a lot of paint and are difficult to clean. I have 2 in my garage that have only been used once. I always go for the hand held one.
Tenants: If there is a bug problem, go over there and spray it yourself. Keep in contact with your tenants, let them know you are there to serve them. I always end up fixing some other minor thing while I'm over there spraying for spiders or ants, even though I was not planning to. Always keep a multi tool in your pocket, and a hammer, flash light, and measuring tape in the back of the car.
I probably shouldn't write a book on this, so this is where I will end.
You are doing really great! You are thinking like a land lord.
When can I get YOU on the UA-cam channel?? That was amazing Josh! Thanks for sharing all that knowledge.
Impressive! Good job!!
Thank you Alena! I receive that! It was definitely a fun experience over the past year and I learned a ton.
Awesome!
Thanks Jenae!!
Great stuff Philpot! Quick question: Were all the remodel expenses out of pocket expenses (I.e. did you just have that extra $20K handy or was it a loan?)? Is there any kind of financial jujitsu that can be done to obtain a tax benefit on a remodel/renovation?
Hey Phil! Great questions. I used a few different strategies. First of all I did it over nine months so I was able to pay for it as I went. However I did use two Synchrony construction credit cards that were no interest for 12 months. I have since paid both off (incurring no interest) but they’re nice to utilize for larger expenditures such as flooring or HVAC.
And I didn’t touch on tax benefits in the video, but I probably should have. In short, yes, I definitely utilized some tax jujitsu! That manifested in the form of cost segregation. Real estate is divided into certain categories in order to depreciate it accordingly. The overall structure on a residential real estate property is subject to 27 1/2 year straight line depreciation. However, there are certain interior components that can be depreciated over a much shorter timeframe such as five or seven years. These items include electrical system carpeting, millwork, appliances, fixtures, etc.
Using cost segregation you can write off larger portions of your remodel expense sooner which offset your active income from the property to essentially reduce your tax burden to nothing. If you think it’s valuable I could make a video specifically on that. It’s a fascinating concept, and one that many high net worth individuals have utilized. Thanks for the question, Phil!
@@danielphilpot7822 This would be great to go over! Maybe include some info on whether you had to set up an LLC to recognize those tax benefits as well? And if not, what kind of forms/schedules you used. Thanks Philpot! Looking forward to the new content!
Square feet of the duplex? Total and the one side that you remodeled?
1200 per side, 2400 total!
I always thought renovations are like 100k-200k for a duplex. Looking at the renovations, they look cheaper than they are.
Oh yeah! And you really raise the value and rental income because of it!
Only because he did most of the work. The thing is, this guys knew what he was doing. Most people attempting after watching a few videos will end up doing more damage than anything. If you were to hire most of this work out it probably would be around 70k with labor. However he did find parts for very cheap so that was a huge benefit and cost saver as well!
How did you finance the $20k remodel?
Saving cash and a Synchrony construction credit card which I’ve since paid off. About $10k on each
What state are you in?
Arkansas!
Cool job bro. Just bought a duplex and am in the middle of a remodel. Never thought about Facebook marketplace. Gonna check it out
now that the duplex is worth 50k more why don"t you sell it and start the process over again ?
Thought about it briefly, but it cash flows so well that it would be hard to replace with another asset if I sold. Plus, it was a lot of work! Want to enjoy some positive cash flow, keep it, then start another one 😊