All Forum Posts by: Tyler Smiarowski

@Joe Fairless 

Maybe..right now I own 23 rental units and wanted something to help accumulate cash faster so I decided to focus on flips. Probably will try to stockpile cash from flips in '14 and '15 and then decide the next step. Possible scenerio:

- Continue to flip  and convert every 3rd or 4th flip into a rental to hold for at least 1 year and then possibly sale to cash out or do a 1031 xchange into a long term buy and hold.

Also at some point at the end of '15 consider doing RE fulltime.

Andrew,

Are you doing any advertising to find deals? I would be interested to know what locals use for direct mailers and the cost?

House came from a bandit sign...I put out about 7 or 8 bandit signs and got a handful of calls. I didn't provide a business plan..just my tax return and personal financial statement.

Here is my goal for 2015:

- Complete 8 flips in the year

- Average 15k of net profit in my pocket on each deal

That's its, pretty basic. I am closing on two properties in November that I will be listing at the beginning of 2015, so I feel I have a good head start to reach my goal. My biggest obstacle will be tax season (I am a CPA and tax season gets a tad busy). So I am hoping to close on a property in January 2015 that will keep my partner on the deals busy during the tax season.

I use a local bank in the area. I don't think a large national bank would provide generous loans like these (I may be wrong but never have heard anyone doing it). I never really approached the bank for these types of loans. I financed one of my rentals with them and just developed a relationship with the person. He is VP of commercial lending for the bank (banks have millions of VP's it seems like so he isn't really a big wig but more than a entry level loan officer). I just told him what I was looking for in lending and he offered to help. If I were looking for another local lender...I would find some of the higher up loan officers and give them a call or shoot them and email and tell them what your plans are and see if they can help.

Ok...so purchased a 3br 1.5 bath home on July 17th in Marion, Iowa. I bought this home fully intending to flip the home and try to make a few bucks while doing it. Set to close Oct 31st, here are the details (I am sure I will leave out a lot of details but this is the basics):

Purchase Price: 53.5k

Rehab Cost: 13.5k (paint, carpet, redone hardwoods, new cabinets, tiled bath and shower, new light fixtures, garage door, new deck, new windows etc etc...this number includes re taxes as well ) I saved some money by doing a lot of the work myself..some painting, demo work, landscaping, etc.

Interest Cost: About $600 ( I got a construction loan from a bank..the interest rate is 4.75%...so very low)

Utilities: $300

So I am basically all in for 67.9k (53.5 +14.4k),

Sell Price was 109k and we went sale pending in 1 day!!

After commissions, prorated re taxes, and a lot more seller concessions than I would care to discuss....the net proceeds will be roughly 92,500.

This will leave me at closing with 24,600. But I do have to pay my contractor (partner on the deal) for his labor of 7,500.

This will leave me with 17,100. And the best part of this is that I put no money down!! My bank provided all the money to buy the property and finance the repair costs. Pretty cool!!

I am set to close on my next project Nov 3rd. Its a bank owned property that I bought for 38k (all cash, family member loaned me the money). Rehab costs will be about 12-13k with an ARV of roughly 83k to 90k.

Thanks for reading.

Ok...so purchased a 3br 1.5 bath home on July 17th in Marion, Iowa. I bought this home fully intending to flip the home and try to make a few bucks while doing it. Set to close Oct 31st, here are the details (I am sure I will leave out a lot of details but this is the basics):

Purchase Price: 53.5k

Rehab Cost: 13.5k (paint, carpet, redone hardwoods, new cabinets, tiled bath and shower, new light fixtures, garage door, new deck, new windows etc etc...this number includes re taxes as well ) I saved some money by doing a lot of the work myself..some painting, demo work, landscaping, etc.

Interest Cost: About $600 ( I got a construction loan from a bank..the interest rate is 4.75%...so very low)

Utilities: $300

So I am basically all in for 67.9k (53.5 +14.4k),

Sell Price was 109k and we went sale pending in 1 day!!

After commissions, prorated re taxes, and a lot more seller concessions than I would care to discuss....the net proceeds will be roughly 92,500.

This will leave me at closing with 24,600. But I do have to pay my contractor (partner on the deal) for his labor of 7,500.

This will leave me with 17,100. And the best part of this is that I put no money down!! My bank provided all the money to buy the property and finance the repair costs. Pretty cool!!

I am set to close on my next project Nov 3rd. Its a bank owned property that I bought for 38k (all cash, family member loaned me the money). Rehab costs will be about 12-13k with an ARV of roughly 83k to 90k.

Thanks for reading.

Its pretty easy right now to say "just let it go"...until the tenants move out and you find out the 5 kids are all aspiring artists who drew pictures on every square inch of the walls, enjoyed using windows as target practice, etc. Hopefully I'm wrong. Is it possible the guy just has custody of the kids for a few days a week?

Where I live it is legal to only allow 2 people per bedroom...so the max for a 2 bedroom would be 4 people. I once had a lady who had 4 kids want to rent a 1 bedroom I had that is about 600 sq ft!

Tell them your last option is to release snakes in the home to take care of it.