All Forum Posts by: Michael K Gallagher

Hey Carolyn, The only major difference I'd expect to see in my numbers when flipping is that you need to account for the condo fee in the buyer's final purchase monthly payment. So if its a building with a high for the are condo fee every month then in my mind you are driving your own ARV down because that condo fee is taking up a larger portion of the monthly budget. If you are specifically looking to do the flip in Chicago you need to reach out to and get in touch with @Jonathan Klemm he's doing amazing things in the area and can help you acquire the property and flip it with his construction company.  

@Kyle Donlea these seem like great assumptions to me.  Are you really going to get $1700 a month in rent for something that cost you $148K?  Or is that rent post rehab maybe?  Either way the numbers and returns look like its a killer deal!

If you want to BRRRR a small multi in Columbus plan on most likely having a 6 figure rehab budget or damn near it, and expect to spend about $150K-$200K for a duplex that needs gutted. That's anywhere in the quickly gentrifying areas that @Remington Lyman brought up above.  All are great areas, but to the previous points if good schools are what you are after then BRRRRing is probably not going to be the best strategy, unless you manage to find some very specific set of circumstances.   

Really depends what you like and what you are trying to do, and how much cash you have on hand to add the value.  There are some pretty sizable duplex projects I've seen done and purchased on market where they add a third story and even a third unit on that third story and convert them to condos...that kind of rehab is going to be $200K easy, but the value you're adding is substantial...thats a much different acquisitions strategy than if you are trying to get in and out of a rehab for $30K.

But all in all I'd say off-market will always be "better deals" but certainly there are still deals to be had on Market if you understand your strategy well and know what your buy box looks like to execute that strategy.  

You have to remember too that this is one of the hottest markets in the country, so the amount of wholesale calling that is happening daily here is assinine! So if you are going to go after off market deals...consider how you are separating and differentiating yourself, otherwise you're just another caller. 

Love to see it!  Loconia is a great area.  

Hey @Sigmund VanDamme that's your post Refinance COC return, you have a 9% pre refinance COC return. The Post refinance is so high because you only left $335 in the deal it looks like...so almost "to infinity"

Hey Alicia, depending on your return/location criteria, we could potentially find you something in the Dayton OH market that meets your under 100K price requirement. I'd be happy to talk in more detail about the market itself if you are interested, feel free to reach out.  

Cheers, 

The biggest difference in the two types of properties you are talking about is going to be the financing.  One you can secure standard long term financing through a traditional lender and the 8 unit will be commercial financing....you may like the terms of the commercial financing better, and the point of the larger buildings is really a risk mitigation, 1 building, 1 roof, that kind of thing.  at least in my mind.

Have you run comps on other similar 4 plexes in the area?  Perhaps that is where they trade in that area and the cap rates are simply extremely compressed?

hey @Account Closed gotta put one up for Cbus also.  We have several submarkets that will meet just about any investment criteria you can have, and have a diverse economy with a steady population increase YOY.  The diversity of industry, is its real strength in my opinion, there is higher ed, medical, Warhouse, logistics, manufacturing, automotive, insurance.