All Forum Posts by: Sidney S.

BTW Thanks everyone for your input thus far!

@Mark Ainley @Matthew Putnick This is a multi-unit property that currently is set up for 3 units if the bottom unit is rehabbed into a 3rd or it will be a good size duplex(this is the route we're thinking). I definitely failed to put down one of the most integral parts of the deal, the property is in receivership. This might be one reason why we don't have specs on square footage. We believe that one of the units measures in at 2,500 sq ft out of the 6,000 sq feet.

@Lacie Morris We would be there off and on but certainly the other investor would be integral. He is family and we would be utilizing his knowledge of reliable vendors while he manages them. We have about 12 pictures of the property but you're right there is certainly some grey area. I'll see what the chances are of us getting a video! We are considering walking away - we were happy to find the investor and I'm sure we can all relate to not wanting to miss out on a deal so I'm just trying to figure out if there is anything else I can do to evaluate this property more thoroughly. 

Hi all!

I am new to BP and have a pressing situation.

My husband and I are interested in a property in the Bronzeville Chicago neighborhood and are teaming up with someone local to the area for this potential deal.  This property would be a flip with the possibility of using it as a rental up until we sell in Spring 2016.

The Property

- 4 Floors

- Basement: gutted and needs full reno (can put 2 rooms down there). This could be a separate unit by itself but we're told it makes more sense to combine w/ 1st floor unit and create a duplex

- Don't know complete layout of property but have been told that 2nd and 3rd are already a unit (a large one).  Basement will be combined with 1st floor to create a larger second unit.

-Bedroom/Baths unknown. Both of the units that are already completed have at least 2 bd/2 ba

Numbers (approx.)

Purchase Price: 60K

Rehab: 100 - 125K

Holding Costs for 6 months(includes utilities, HOA: 6K

Closing Costs + Insurance: 3600

Marketing: 3K

ARV: 325K (We have been told that the entire property has the potential to sell for around 400K)

Total Expenses: 211K (for all of holding, purchase, marketing)

Total Gross Profit: 107K

Problem

We're having issues gathering all the specs on the deal given that the property has not been listed w/ square footage noted and agent representing the property will not provide further information. The agent hasn't even provided a ballpark figure. 

Our partner has viewed the property and is a contractor as well. He believes this property has an overall square footage of around 6,000. As my husband and I are out of state we have not been able to view the layout of the property, but we've been told how it flows and seen some pictures. 

We're integral in the analysis of this property but can only go off of what other people have told us.  Potential exit strategies (based off of what others have told us) would be to turn this property into a larger duplex and sell off each unit OR do a buy and hold. 

This feels like we're almost purchasing at auction but the numbers make us want to move forward. 

This would be our first flip or second buy/hold. Is this a crazy deal to run into or what other safeguards can we arm ourselves with?