So I bought my first real estate deal out of state November 2017 with plenty of cushion and great returns. It was near the University of Cincinnati which I think is a great place to start. This house was going to test everything I learned about and have put into practice helping other investors. It was an extremely old house (1893) with a very abnormal layout that technically made a 1,800 sqft home into only a 2 bed 1 bath. After I closed the deal I flew back out to Cincinnati, now one problem is always knowing what materials and labor cost will be and no one would tell me how they came up with their numbers, this frustrated me and I quickly realized there is very little transparency in the construction industry. The next thing I realized I took on too big of a project and it was going to be a slow going process, but this has triggered something and I was soon off to the races and have acquired 2 other properties in the Cincinnati area. So my portfolio looks at like this,
161 Judy, California
Purchase $112,000 with needing roughly $30,000 in work giving it an ARV of $320,000. This house already had tenants in place. I place to hold this property and do most of the work myself using the rent checks to fix up the property giving me justification to increase the rent 10% every year until it is at market rate. When I acquired it, it was being rented out at $1,225 with a market rate of $1,600. I have successfully raised the rent to $1,325 with no vacancy.
3255 Glendora, Cincinnati
Purchase and assignment fee totaled $80,000 with an estimation of $50,000 in rehab and an ARV of approx. $190-200,000. This is going to be a student rental. It is currently in the rehab stage with a completion of May 1st. I already have a lease signed with deposits received for $2,000/month with the lease starting in August.
5612 Abbottsford Cincinnati
Purchase $57,000 with a rehab budget of $35,000 and an ARV of $140,000. This house will be a flip due to it only being a 2 bed 1 bath that doesn't capture the rents needed to refinance and pull all my money out and cash flow positively. Rehab time with the general contracting business I own half of will be 2 months with a hopeful close of 2 months of listing giving me a 4-month hold time.
879 Rockdale Cincinnati
Purchase $24,000 with a rehab of $50,000 and an ARV of$120,000. Demo scheduled to start in 2 weeks. This property will be a rental with a time frame of 2 months for the rehab and refinance a hard money loan or private loan after 6 months. The way I decided to handle deals is I will be closing on the property no matter what and will offer out to a few private lenders after I have the property under contract with the means to purchase it on my own with our the need of a lender. I feel this adds an extra bit of confidence to the lender knowing that I will be going through with this deal no matter what.
So there we go 3 active projects going at once and 50% ownership of a general contracting business. It has been a crazy 3 months but the ride has been fun and I look forward to the bright future of S&C Real Estate and Gear'd Development.
