All Forum Posts by: Account Closed

So just replaced a cabinet vanity, reused all the old plumbing parts, no leaks done in an hour zero trips to hardware store. I'm feeling lucky, would buy a lottery ticket, but gambling without free drinks just feels wrong.

Chuck, we have a number of rental condos. What I like about buying distressed units is the foreclosed unit owners abuse rarely effects anything structurally, in some cases it has no effect on the mechanicals either. I've been really lucky with condo boards, actually joined one to limit their stupidity. Another association I belong to, Ive assisted with property tax appeals, connecting association with a capable law firm. The main thing with associations is you don't buy into one that is too broke, ideally your reviewing some financial data before offering, not always practical though. Condo buying favors cash buyers more than other properties, for a variety of reasons. 

I've found better ROI's on condos, more risk, less appreciation but better ROI than either singles or 2-4 units.

What are the pros and cons to each flipping demographic? 

ROI, means return on investment and does not consider down payment, equity percentage, or if funds used for investment were borrowed, stolen or gifted or traded for equity. You don't factor mortgage payments or interest in ROI.

This more a time and integrity decision than a commission vs cost one. Biggest question I have is do you have real estate or other business related experience that would enable you to reasonably represent family? 

A commission split aggressive managing broker won't want an agent only for one transaction, do you plan to be honest with your intentions. In addition to license, associations generally require some training time as well. 

In IL the whole process with license, tests commuting other training, meeting broker, is probably close to 120 hours minimum. 

What, should be, rather.

There is a lot of BP confusion with the term cash flow. Varied equity, varied credit worthiness, varied amortizations, the list goes on. ROI, is a simpler less ambiguous evaluation method. Even with ROI, different calculations for maintenance, management, leasing agent fees and vacancy rates, can leave one scratching their head, as to what be the ROI.

Wayne,

It's a condo in the historic district. Monthly rent is a little over $2- per SQ FT. 

TAXES, association fees, and maintenance run about 80 cents per SQ FT, net profit, 1.20 per SQ. 

Paid cash 2017,

ROI, approximately 7.500%.

Handle rental and most maintenance my self.