All Forum Posts by: Rory Boone

I have to travel down to Astoria, RO for business today. I will swing by on my way there. see every shortly. :)

Welcome Tiffany. I am investor out in Seattle Market as well.

HI @Brittany Glenn . I started this business with very little money...

The cheapest way I was able to find a deal is craigslist from sitting inside my home...

Things you will need:

Internet connections, computer, Cell phone , and

app Slydial (free) ( allows you to skip straight to a person's voice-mail inbox)

Since you have posted on here I assume you have internet and computer..

Look for houses on craigslist for sale and/or rent that looked to posted by homeowners.. You looking for homeowners that need to sell not those want to sell.. Use the slydial app to leave a voice-message expressing your interest in buying..

Talk to the people who call you back and determine if they need to sell or just want to sell.. Those that need to sell are the ones you have highest chances of helping and can make a profit from.

General rule of thumb 65-75% ARV - repairs and your profit = your offer price.

ARV= nice similar houses are already fixed and sold ideally .5 miles within last 3 months.

To find cash buyers...

Look up who owned the already fixed up houses in your county recorders office and research their name on bigger pockets, LinkedIn and Facebook... send them a message once you got deal under contract.

Welcome to BP. I am a wholesaler working the Chicago market. I am always looking expand my network with active players in the game.Just sent you connect request. :)

Patrick L., Given that example it definitely makes sense to increase my estimated repair cost. Even increasing to 16% on repairs ($360). My Cash flow is $300+ and if I a managing the property and handling the eviction as you did that 10% I allocated for management would not exist and it would offset that additional repair cost by giving me an additional $380 of revenue monthly).

Thanks Joel Owens you brought to my attention some points that I did not think of in regards to tenants that have not be "season" in a property. I probably didn't make this clear in my 1st post but I am not looking to sell the property. I want to obtain necessarily financing to finish repairs and hold. I have mortgage broker ready willing to lend on the property once the repairs are completed.

Here's the deal. I have 4 Unit Property I bought back in Dec of 2012 located in lower income area ( not a war zone) in the South Suburbs of Illinois very close to Chicago. Most flippers are not buying properties in this area due to the lack of comparable comps and high property taxes. But here's the thing I ran my numbers with the high taxes on the deal and it still had nice cash flow on the deal. Plus the property is located in lower income area but it right across from the police station. The location played a major part in me purchasing the property as it minimizes the level of problems that I typical will have to deal with with it being in lower income area. The property has a complete unfinish basement and a added on room that attached to one the units which provides the opportunity to convert the 4 unit to a 5 unit. The add-on room has fireplace so I was thinking to convert that to a 500 sf studio.

I have put about $25k into property already to get two units completely renovated, update/separate the heating systems in all units, replace some windows, install security doors and some roof repair work on the garage and the building.

Property will rent for as follows:

3 2-Bedrooms will rent at $ 800.00 monthly $ 28,800.00 annual
1 Studio $ 550.00 monthly $ 6,600.00 annual
1 2-Bedroom bigger unit $ 850.00 monthly $ 10,200.00 annual
$50 a month $600 annual for garage parking

Total Annual Revenue $45,600

Conservative Vacancy loss 13%
Management 10%
(I plan to manage the property myself but still included the management %.)

Operating Expenses:

Insurance $208.33 monthly $ 2,500.00 Ann
Lawn Care $ 100.00 monthly$ 1,200.00 Ann
Pest Control $ 20.00 monthly $ 240.00 Ann
Trash Pick Up $ 59.00 monthly $ 708.00 Ann
Misc. Repair Main. : $ 120.00 monthly $ 1,440.00 Ann
Taxes: $ 833.33 monthly $ 10,000.00 Ann (plan to appeal)
Water: $360 monthly $4,320.00 Ann

Total Expense $20,408.00

To finish up repairs and the leave the property as a 4 Unit. (minus studio)
Rehab cost is about $45K. 10% interest only debt ratio 2.28
Monthly Cash Flow $475

To finish up repairs and convert to 5 Unit.
Rehab cost is about $70K. 8% fix int debt ratio 2.39

( I would prefer to take $20k out of what I put in if I convert it 5 unit which make my loan amount $90K) 8% fix int debt ration 1.93
Monthly Cash Flow $605

The only Multi-Unit (2- 4 unit) that has sold in last 3 months that's within 1 mile radius of the property is a 2 unit for $140,000.

I would think my property would be worth at least that after repairs seeing that its twice as many units.

PS: I have a tenant ready to rent one the units out. City however wont allow me to rent the property until it passes inspection. All repair work must be completed to pass inspection.

What am I missing.. Why can't I getting Hard money lender or private funding on this property... Maybe I am presenting incorrectly.. IDK O_0

All feedback or comments are welcomed. Thanks

Welcome to BP Tatiana. I am investor out in Seattle. How can I assist?

Hi Ali. We may be long distance cousins because my last name is Boone as well.. lol But anyhow I would be interested in looking at the duplexes in chicago to compare. Please PM more info. Thanks

Welcome to BP Igor S. Good luck on your 2nd flip. I like the NW suburb market as well in IL.