All Forum Posts by: Sunny D.

i was looking at a 21 unit analysis recently and there is very little cashflow with the high utilities, taxes and adding up mgmt fees. The price and value add opportunity is important at that size of purchase. dont trust pro formas from the marketing who claim properties are turnkey

0 Votes

Managed to get one more SFH in contract, nice area west of rocky river drive. Bank owned off mls deal. It could take 30 days to close.

68k purchase price, could be 20 to 35k rehab depending on if we want to retain for buy and hold or flip it. ARV is around 135K.

So we got some equity in the property already.

Jad Boudiab was my agent again.

We were working on #8 now. Have a few offers out. I don't buy anything at list now and need min 15k equity at purchase time

0 Votes

Cleveland, Ohio

Originally posted by @Don Petrasek:

@Sunny D. I have 4 singles in that area. Its a strong rental area and I have no trouble finding good tenants...most stay at least 3 yrs. I'd recommend staying North of I-71 though, things get a bit more difficult once you cross over the highway (going South).....not terrible, you can still make it work but you're definitely going down a grade or so.

I am amazed at how many houses are pending in that area right now, it wasn't too long ago that you would have had your pick of 12-15 listings that had been sitting around a while. The good news is prices seem to be starting to rise, I've seen some $80s $90s and even a six figure comp in that same neighborhood. haven't seen that since about 2006...

Quick update

Both units have been rented now. I pay water and sewer.

sfh #5 all in incl. rehab was $49,500 rented at 975 pm

sfh #4 all in incl. rehab was $58k rented at 950 pm

now focused on finishing my rehab on my #6 and close to getting my offer agreed by seller on #7. On target for hitting 10 homes in Cleveland by EOY and now am working exclusively with Jad Boudiab.

3 Votes

Cleveland, Ohio

Originally posted by @Jeongmin J.:

My primary home has gained its value more than 500 K since my purchase. Further gain will be taxed as ordinary income. Should I sell the current home and buy a new one to take advantage of the tax benefit again?

I am in same boat , my 1 mm purchase 5 years back is now worth 1.5-1.6 mm

I am not selling. I need a place to live. I don't care about the fact that i have to pay capital gains tax for >500k. It should be worth min 2mm if i keep it another 5 years.

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1. Thinking flipping will work out of state.

2. Trusting people who tell what you want to hear. (the right numbers)

3. Trusting people who are dishonest.

4. Trusting the status on the email being sent from the untrustworthy folks 1000+ miles away

5. Trusting that the inefficient partner will turn things around by being more patient.

6. Taking too much financial risk by jumping ahead with multiple projects with a bad team without seeing one actually work

7. Not protecting myself legally when working with the dishonest partners.

I have learnt this the hard way. I now am able to make money working with the people that know they will benefit by remaining honest and building a long term partnership.

10 Votes

Originally posted by @Jeremy Brown:

Cash flow in Folsom SFRs is nearly impossible if you use any debt. Rents are high, but purchase prices have grown too. I’m bullish on appreciation, but that’s about the only way to make much money on rentals here.

I actually subscribed to this thread to watch for gc recommendations. I have guys for most trades and references for a couple higher-end contractors, but no gc I’d want to hire for an extensive rental remodel.

Agreed no more cashflow. Luckily i bought one at end of 2011 which has doubled. I am not counting on a lot more appreciation at this stage. So need at least some equity to buy in at this stage.

0 Votes

Sacramento, California

Originally posted by @Justin Wotring:

@Sunny D. glad to hear you had a good experience! I was speaking with a colleague at work the other day and he has a HELOC through a credit union that I also do business with. He shared the same advice about getting approved for the max, but taking only what I need. If I do look into this route, I'll be checking with them and comparing with a few other institutions. Thanks for sharing and the advice!

also its easier to go through same bank that you used to get your primary loan. I paid 0 closing costs with chase and they actually did a full appraisal.

0 Votes

Originally posted by @Jeremy Brown:

Are you looking for someone to do the most cost-efficient work to make it a rental, or higher-end work for a primary residence?

I have a sfh in Folsom renting for 2100 now, so the fixes need to attract a high income tenant, so not looking for cosmetic fixes, may need extensive electric work, new garage, roof etc

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Sacramento, California

Originally posted by @Jeremy Brown:

Are you looking for someone to do the most cost-efficient work to make it a rental, or higher-end work for a primary residence?

Plan to make it a rental

0 Votes

Sacramento, California

All Forum Posts by: Sunny D.

Sunny D. has started 22 posts and replied 237 times.

Post: SFH #7 in Cleveland- Kamms corner

Post: Investing in out of state is it necessary to visit prior?

Post: SFH #7 in Cleveland- Kamms corner

Post: #4 and #5 - in contract cleveland 44111

Post: Sell with $500k for tax benefit?

Post: Share your 20/20 Hindsight - what would you do differently day 1

Post: Gc referral Sacramento Folsom area

Post: HELOC on primary residence for investment of rental?

Post: Gc referral Sacramento Folsom area

Post: Gc referral Sacramento Folsom area