All Forum Posts by: Anthony Konya

I am looking at buying a flip using a conventional mortgage on the property and paying for rehab out of pocket. The basic numbers are:

Sale Price: 230k

Rehab Cost: 65k

ARV: 400k

Total Cash in before holding costs: 77k

Holding Costs per Month: 2,500

If I purchase this house I am looking to do some major cosmetic work and sell. Closing would be August 26 and estimate that rehab will take 3 months. This puts me at a position where the house could be put on the market sometime end of November or beginning of December, but the house is located in the snow belt of Ohio. I have had recommendations to hold the house until end of Feb and list then; this will increase my investment into the property by about 10k. The final numbers I am looking at then look like this:

List in the December:

Cash In: 92k

Profit: 50k

ROI: 54% (6 month)

This deal for me is about borderline due to the large cash investment

List in end of Feb:
Cash in: 102k

Profit: 40k

ROI: 39% (10 month)

This is a no-go for me due to ROI and how long my cash is tied up.

I am looking at a few other deals and this one has some other issues such as locking down an exact ARV so I am pretty sure I am going to drop this one, but wanted to check with those that have a lot more experience than me in this. Do you guys list houses in the winter in northern climates or hold them until spring?

Thanks in advance for your responses!

Hi all,

I'm brand new to the forums and just getting started in my real estate journey. I have been looking at real estate, reading the books, and listening to Bigger Pockets for about 5 years now. I understand the difference between how multi-family and single family is priced but I'm confused on the returns between the two. Most of the single-family homes I have looked at, if trying to compare to a "cap-rate" they generate a lower net income than the multifamily units. Is this typical or are these just bad deals? 

I'm trying to figure out were to look for some of my first deals, if I should head towards a more commercial route with 5+ units per buy or the duplex/triplex style houses. I am trying to do my first buy sometime in the next three months or so. Thanks in advance for any advice!

Hi Justin, 

I have actually been recently looking in the Akron market too. I've been doing some work talking with local renters in the area and some property managers and what I have been told is that if it is within 1 mile of campus the vacancy rate is very low, outside that it can be much higher and the city average is 7.1% vacancy. Goodluck!