All Forum Posts by: Ken Nyczaj

Investment Info:

Condo fix & flip investment.

Purchase price: $170,000
Cash invested: $75,000
Sale price: $315,000

$170,000 Purchase Price
$8,000 Closing Cost
$4,000 Holding Cost
$75,000 Renovation
$20,000 Selling Costs

$315,000 Sale Price

$38,000 profit.

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

Trying to flip properties to make money to invest in rental properties- residential and commercial

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

Marketing Sign and negotiated face to face with seller

How did you finance this deal?

Local portfolio lender

How did you add value to the deal?

New exterior and interior

What was the outcome?

Good profit

Lessons learned? Challenges?

Do your due diligence when buying condos and read the declarations and meet the board if possible so they approve your work.

Did a recent flip near Annapolis Maryland and it was a single family condo. First time I've come across this type of property, didn't even know there were single family condo's, and it was the first time I've flipped a condo. Title company prepared me going in to read the Declarations with a fine tooth comb and to get to know the condo board before I closed on the property. Fortunately it was only 5 units in the condo complex and the President was pretty relaxed during the whole process even though we did want to change exterior appearance. The other homes had not been remolded for decades but we proposed doing a modern renovation and the board approved of it, started off shaky at first but as time went on I think they realized we were trying to help the neighborhood and build a beautiful home.

Definitely think talking to the board beforehand and getting to know people face to face helped a lot in this deal.

Here are the numbers:

$170,000 Purchase Price

$8,000 Closing Cost

$4,000 Holding Cost

$75,000 Renovation (new: roof, siding, windows, front porch, back deck, HVAC, floors, kitchen, two baths, trim, paint, doors)

$20,000 Selling Costs

$315,000 Sale Price

$38,000 profit.

Some pictures, more can be seen on my website: kenbuyshouses.net

@Sean D not being consistent

@Charlie Moore finding a great title company to walk you through the processes is priceless. It's one of the first relationships I built as my outer team and it has made me a lot of money and has saved me from bad deals.

@Kayla Robert J Scott's flipping book and Brandon Turners rental book and Finding and Funding great deals by Anson Young. All explain the basics and how to start generating revenue in a few different niches of real estate. All available on BP or Amazon.

You're better than the 1% rule which is a quick rule to see if the property cash flows, but then after adding all expenses you cash flow a little. What about electricity and water expenses? Since you're living in there it may just be worth the experience to try it out. Perhaps even rent a room while you live there to bring in additional income.

@Mindy Jensen sorry if this has already been posted... how do we access the free bonus content after the Ultimate Package has been purchased?

@Kendrique Coats nothing wrong with buying a multifamily deal such as a house hack four unit to start your investing career off on the right foot. Do your diligence on screening tenants. Buy the property and factor in worse case scenario where you can still afford the mortgage.

@Megan Roe scroll through a parcel map. Sometimes multifamily are broken into separate parcels on these maps and you can sort them out. Time consuming, but you may find deals others missed on small MF.

@Jaysen Medhurst it is a value add play, just the owners didn't seem to want to budge off the asking price at all, and at the price the returns aren't great, but with no money or low money in the deal, it does make sense at full asking price, especially with IO on the secondary note for the first few years to help stabilize cash flow. We are over paying for the park but with the debt service so attractive, and with it underperforming, we may buy at a 7 cap but feel we can move it to a 10-12 cap in only a few years by decreasing expenses and increasing income with little risk in the deal as we don't have much cash in the deal. It's not underperforming with vacancy, only very low rents and high expenses.

Each of us work well together and have been doing so on other single family flips and rentals so we figured to keep the team together. Acquisitions, Project Manager, Property Manager.