All Forum Posts by: Jimmy Hong

Thank you Phillip Dwyer, I feel very fortunate that I didn't have major problems during this process. I would say that finding this property was the hardest, because of our low inventory market. After we (my wife and I) closed, we went full speed ahead with the rehab and then listing it.

This has been such a ideal first rehab, I would be extremely happy if all my future rehabs were just like this. But I'm a realist and know that it won't be possible.

That's a great explanation Dev Horn. I came across this article couple of weeks ago about this topic.

http://homebuying.about.com/od/sellingahouse/qt/122107_PayCash.htm

The writer explains why homeowners should not sell to investors or wholesellers.

I totally agree with Marco Santarelli and Jon Holdman. I live in Irvine and I'm purchasing my first cash flowing property out of state (Memphis). It just doesn't make sense to buy SFH or condos at Orange County prices and rent it out. Unless its for appreciation only.

Thanks Tim Wei, that's sound good. Looking forward to it.

Hi Kelvin K.,

1. We (my wife and I) calculated to sell this property for about $300 per sq ft (x 1369 sq ft) = $410,700.
It was first listed as $211 per sq ft (x 1369 sq ft) = $289,000.
We paid $8000 over their asking price (had to outbid 6 other offers) for $217 per sq ft (x 1369) = $297,000.

2. Estimated cost before purchase:
Renovation $40,000
Agent Commission at 5% $20,535
Holding cost (cash purchase so no P&I) HOA & utilities - less than $2000
Closing costs (title, insurance, etc) - $3500
Total $66,035.

3. Actual costs:
Sold price $423,500 ($309 per sq ft)
Renovation $27,500
Agent Commission at 4.75% = $20,116
Holding costs less than $1000
Closing costs about $4000
Total actual costs $52,616

Difference estimated $66,035 - actual $52,616 = $13,419

4. Property purchased March 1, 2013.

Hope this helps.

Best of luck to you Matt Horton, and keep us updated on your progress. How long do you anticipate the rehab will take? I assuming adding a full bed and bath will be a big job.

I had trouble posting pics on my first try too.

George P., those numbers look great, how confident are you about the rental income of $1,150? Have you checked and verified it?

That's pretty awesome Tim Wei, I am looking into Vegas for rental income right now but haven't found any. I'm not as familiar in LA market, to be honest, LA market kind of scares me. Comps could go all over the place in just a few blocks. But I do understand how competitive it is out there. OC is no joke.

Hi Tim Wei, congrats on you first rehab as well. Maybe you can share your experiences too, I like to know how a rehab goes in LA. Yea, I wasn't only focused on condos, I just pursued the best property I could find. It just ended up being a condo.

Hi W Tomsin, the numbers really made sense from the beginning. I paid $217 per sq ft and I knew with Orange County appreciation and lack of inventory, I knew I could sell for $300 per sq ft (sold it for $309 per sq ft)

On answering you question, I was at the steps of trustee sales for about 5 months every morning and I knew how much distressed properties were going for. The winning bids on these properties were going way higher than what I projected them at. When I actually found this condo on MLS, I knew the area well enough, and immediately went after it with full confidence. If I weren't at the courthouse steps for 5 months, I might have hesitated and lost the condo.

I thought I was wasting my time at the courthouse steps but it turns out I was learning a lot and prepared me for this condo.

Understood, and thanks for answering all my other previous questions Dean Letfus.