All Forum Posts by: Nik S.

I’ve been flipping for a few years now and my lowest profit was about $5000 as well. It was an easy flip, not much planning etc. In Ohio, if a home is purchased and being sold within 6 months and the buyer is FHA, banks require (2) appraisals. 1st appraisal was slightly over our agreed purchase price and second appraisal was almost $15,000 under. I obviously wasn’t going to move forward with the deal as the bank chooses the LOWEST FHA appraisal. That FHA appraisal stuck with my house for an additional 6 months......so I had to try and find conventional buyers (which was hard for this price point / area). I decided I couldn’t sit on it any longer and just move on. Finally got a conventional offer, cleared $5000 as opposed to $15,000 on my “easiest work” flip. Left me with a bad taste in my mouth but it’s part of the game. Continue to learn the system and keep moving on! Rather make $5000 then lose $5000 any day :-)

Finding the right building. A lot of "stable "multi-families are being overvalued but regardless they are selling so that tells you that investors are buying and spending more to make less. You can join the bandwagon or just keep waiting around. 

Be prepared to pay market value and maybe even more. I am OK with this however finding the building (searching for the last year) has been difficult. 

Have your downpayment or cash ready to roll and when the right one goes on the market, underwrite it severely fast and make a move. I see multi-families selling as fast as SFH's. Mind blowing but real. We will be due for a correction however as long as the numbers & area make sense, multi-family is the way to go.

I got beat out on an 87 unit property recently, it actually was an awesome deal. I went a measley $25k over asking and got beat out by an ALL cash buyer who paid $100k over asking. Discoursing but as they say some of the best deals are the ones you never made....right??? :-) 

Let the search continue...........!

For windows, double hungs w/ discount are around $150-$180 each. Installation per window from a professional can run as low as $100-$200+ a window, easily. All factors depend and of course contractor selection changes numbers.

Pam Janovyak assuming your subbing everything out (I did a quick estimate) your rehab budget is way off. Even if you were doing a portion of the work yourself, $29k is not much for the work you want done. For example, you stated HVAC, is it an AC / Furnace? Your roofing expense could easily be $5k-8k depending on home. Adding a bathroom? New kitchen... estimate higher for your rehab :-)

GC Vaghasia Whether you are deciding between flipping the rehabbed property or renting is dependent on your goals. Being able to hold a flip that won’t sell for your desired price is a huge asset as you can let your money sit there but generate income as well (while market rebounds). If gaining capital is your goal (and you aren’t relying on the income) continue to roll ALL flip profits into more flips. Whether you roll into larger sfh flips or multiple median priced homes. Then eventually take the gained capital and invest it into a larger income producing asset :-)

@Alex Huang

All depends on what market your in and what your sellers situation is. If your market is hot and appreciating incrementally, people buy these "outdated" homes and remodel them bc they can and/or because they know the market is rising.

In some of our Ohio markets we can offer low ball offers in certain cases where as in a lot of the stronger markets these homes are going over asking regardless of condition. 

It comes down to market conditions and/or whether a seller will accept your offer given the rehab or not.  You can always submit your offer with a memo stating all the upgrades or repairs needed. 

Know your preferred max budget + renovation costs and offer accordingly! Good Luck

@Matthew Paul

Thanks for the tips! Regardless of current pool condition, it’s getting filled. I’ll update the post with pics, procedures and costs. 

@Hamid Hotaki

I actually backed out of a deal 6 months ago during the inspection (best decision ever) however I was quoted the following:

20% cash down 

7 yr balloon

20 yr amortization 

5.25% Interest 

I was perfectly fine with these terms so I am hoping for essentially the same moving forward. 

@Dustie Verwers

Hi Dustie, thanks for reaching out. As far as this deal goes, as long as I keep paying the mortgage payment bank seems to be very quiet and happy :-). They do request annually my tax return for that property to ensure the property is cash flowing etc. Other than that its A-OK. 

Truthfully this deal was basically my first investment. A lot of members on the site suggest walking before running aka starting smaller however I took a different approach. I trusted my intuition and my skill set and went forward with it. I am now looking at a deal more than 2x the size of this one. This particular deal definitely gave me the courage to pursue more RE investments. I learned quite a bit on this deal and am taking that knowledge forward for a larger acquisition in 2018. 

In regards to "commercial advice", have your tax returns ready, personal financial statement (PFS) prepared, have you downpayment set aside and in clear visibility (not tied up in equity etc), have REALISTIC numbers on the property your buying, present a pro-forma statement for the property being purchased and most importantly do your DUE DILIGENCE before making the deal and WHILE your in contract. 

thanks for the suggestions! It will still cost a few thousand ($2-4k) to fill in the pool. It’s a 20x40 pool but I think the big open backyard will be great. As you all mentioned, pools are way to much maintenance especially given the short usage span each year in Ohio.