All Forum Posts by: Austin Steed

@Bill Goodland

Thanks!

Lack of experience creating a budget and we decided to finish the basement. Which increased our arv to about 215k. We sold it for 222k.

We took VERY detailed accounting too. From the expense of buying our guys coffee to every extra little trip to home depot. I'm not sure if there was one area that we went totally over, just all the little things that added up.

I am still busy here in Columbus. 

I've had 2 listings come to the market this month. 2/3 have already sold to cash buyers. Some of my buyers and listings have put things on hold. But it seems for the ones that aren't buying or selling right now I've gained others looking to invest. 

@Trent Ecklar good to hear you are busy as well!

Agree with @Remington Lyman and @Robert Ellis.

Cashflow is first step. I would consider the correlation with return and neighborhood. Cap rate should be much higher in worse areas. 

And remember Columbus is a NW city. From the CBD going NW there is most of our A class area. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $70,500
Cash invested: $63,500
Sale price: $222,000

I raised capital and will share all profits with cash investor.Property was found off market and I managed all negotiations.
- Purchase price $70,500
- Rehab cost was budgeted for 40k but we ended up doing more to the property and spent 63.5k.
- ARV $205,000. Actual sale price was 222k
- Net Profit = $76,642

What made you interested in investing in this type of deal?

The proximity to where I live and the ARV %. This property was purchased for $70,500 and sold for $222,000

How did you find this deal and how did you negotiate it?

I am a local agent and I called them trying to list their house. They said that wanted a quick cash close. I raised the capital and called back with a cash offer 10k over what they were asking and we closed in 2 weeks.

How did you finance this deal?

A business partner and I purchased the property together. He provided the 70k for purchase price and since I found the deal we took 50/50 ownership of the property.

How did you add value to the deal?

We walked the property and pulled comps. Again this is where I live and I'm an agent. So I had a good understanding what the ARV would be.

What was the outcome?

My partner and I structured the deal where for ever dollar that was spent at the property we would get back. We both got all of our money bank and the left over profit on the SS was $76,642.00. So we each made 38k.

Lessons learned? Challenges?

Account for Utilities! This area is all electric and we did this flip during the winter. We spent over 1,000 on utility bills.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am the agent. And my business partner manages over 120 SFH rentals.

@Kyle Kline

It's a good place to be!

I would agree with @Robert Ellis. 

It also depends on which companies you go with.

ABC/IGS has a package with a $0 deductible. But you have to use their in house contractors. I think this would make sense for an OOS investor. 

America's Preferred HW has a deductible but you can hire your own 3rd party contractors. I've used this company for one of my doubles here and they paid $225.00 for a a stove repair. Kind of a head ache with the process though.  

@Luke Soroka welcome to the REI world in Columbus!

If you go to meet ups and stay active on BP you'll see the same names pop around. 

I'm not sure where you currently live but I would suggest you look into owner occ loans. I see the numbers work much more often on a low down payment owner occupied loan. 

For example: I'm a veteran so buying a 2 unit with 0 down makes most properties work, even a turnkey. I've seen this help newer investors get their foot in the door. And this is how I started as well.