All Forum Posts by: Stephanie W.

Every thing around this has sold in the $20k range. 

Thank you @Aaron Montague that is extremely helpful. I am going to let it go, though, because I want the cash to fund another, more lucrative project. It will be a great one, though. I have a policy to not leverage any of our rental properties. I'm 58 years young and don't want the stress or burden of mortgages. I really enjoy the flip transformations and will be turning the profits from this one right back into the next. Your numbers solidify my suspicions that I won't have any trouble selling when it's finished. Thanks!

I am testing the waters to see if BP members think that I would have any trouble selling a duplex, in a small town, completely renovated with brand new, quality Section 8 elderly tenants in place.  I don't know how well turn key multifamily properties sell. Are they in demand or should I just rehab and try to sell vacant? I'm new at flipping, I've been a buy and hold girl for years, and I thought if I found a good enough deal on a duplex, this strategy might work as a consistent marketing strategy. Rehab would be high enough quality that no cap x would be needed for years, and I would only buy in good areas, close to town center in communities that had dire need of this type of low income housing. Is this a business model that could work?

  This particular seller is motivated by health issues. He is selling it for what his mortgage balance is. Plumbing and electric and hvac were upgraded in 2008, but no cosmetics have been done in decades. What I really want to know is whether or not selling a property with good tenants in place a viable exit strategy? Is it done often and is there a business model for it? I know folks like Memphis Direct does this kind of thing all the time, but is it something a small company like mine can do maybe once or twice a year especially in small towns with very limited low income housing. By the way, this town is an hour from Columbus, Cincinnati, and Dayton.

@Aaron Montague the tenant will pay all utilities, they are all separated. Insurance runs $50/month. Management fee in this locale is 8%. Vacancy would be much less than 8% due to the high demand for Section 8 housing in this community. I will be upgrading everything to builder standards plus one just because I feel better when I provide people a nice place to live. And thank you so much for your response, I wasn't really looking for a number, per se, I just don't have any experience with this type of exit strategy. But you gave me a lot to think about that I hadn't considered.

Purchase price $40k

Rehab $20k

Arv $120k

Rent $1350

2br/1bath 900 sq ft one side

3br/1ba 1050 other side

2 blocks from town center

Section 8 would not be the only market, however I am friends with the Mayor of the town and he assures me that there is a desperate need for low income housing. With that in mind, I am optimistic that we would have the 'pick of the litter' and with all new everything in the property, inspections should be an all clear. I have two section 8 tenants now and just couldn't be more pleased with both. They are considerate and clean and take good care of our property. They're long term tenants who have no intention of moving. The positive side of these folks is if they mess up, they get denied support from then on so there is a huge incentive to 'behave'. I'm sorry your experience wasn't so pleasant. And to answer your question as to 'how I would know they are good tenants', I have five properties, 8 doors since 2010 and have never had even a move out. I'm very very particular. I don't have a blog that discusses this issue, but Brandon's tenant screening handbook is the best in its class.

I am just testing the waters to see if BP members think that I would have any trouble selling a duplex, in the heart of Hillsboro, Ohio, completely renovated with brand new, quality Section 8 elderly tenants in place. I have a decent contract pending to buy such a property but I don't know how well turn key properties sell. Are they in demand or should I just rehab and try to sell vacant? I'm new at flipping, I've been a buy and hold girl for years, and I thought this was a good enough deal to jump in feet first. The rehab will bring the place up to where anybody wouldn't mind mom or sister living in it. :-) What say you?

BTW, Jeremy, get a picture up asap, it really makes a difference in how people respond to you on BP.

Ahhhh, one of THOSE... :-)! Yes, I understand your trepidation, but you can scope folks out via social media and BP to vet them to a large degree. Plus, going to friends and family is always an option. Right now none of my investors want any say at all, so if I found someone that I knew could do a flip and get us say 10% return within 5-6 months, I would be willing to risk it to be able to get a bigger pile of cash. There are people on BP that are so famously successful I wouldn't have an issue at all being one of their investors, even with my investor's money! Sometimes, you just have to let go of the reins and have faith in your judgement. Let me know if I can be of help. I'm always happy to give a little shove now and then.

Consider finding other investors in your area that also have cash and pool your money so your prospects are larger in number. Margins are bigger on more expensive property and the competition starts getting thinner up there. I am experiencing the same problem here in Roanoke, VA. The good ole boys here gobble everything up before anyone on the outside looking in can even get a chance to make an offer. It's very frustrating, fortunately they rarely buy anything for more than $30,000, so I am able to sneak in on the more expensive properties. Plus, I stole one of their really skilled contractors, so I can flip less expensively now too. Hope this helps.