All Forum Posts by: Tony Cimino

Michael, I thought I took that into consideration with the 10% fixed costs. When buying at 35,000, 6% = $2,100 When selling at 10,000, 6% =$6,000 Leaving $1,900 for other concessions, like home warranty, and small fixes.

Good Morning, My wife and I are looking to get into flipping. I took the college path, and never got into construction, but after talking to a realtor friend, he directed me to BP. I have been listening to multiple pod casts at work, and have narrowed down that my “business model” to flipping and have been listening to those podcasts! It’s amazing stuff, and has inspired me to to get the wheels moving into motion on investing. My dad is a contract salesman who works with local flippers/contractors daily and bids out jobs, so I am going to lean on him for a lot to make sure that contractors are bidding appropriately, and the work is done timely. He will be giving me the names of a few contractors that he trusts too, which is awesome. I have reached out to multiple people within my area and am planning on buying them a beer/coffee/meal to pick their brain, after the holidays. One flipper has already told me to try and not use my own money, but that you should have money as an insurance policy, which I do. I want to make sure I am on the correct path before going to a lender (bank/hard money), for the loan and am asking BP to be very critical of my plan going forward. I love feedback, I need feedback to make sure this works for my family. Below is my plan, and I want to make sure I have all of my ducks in a row first. Please critique my hypothetical plan for this flip. My flip revolves around the house listed below: See what I found on #Zillow! https://www.zillow.com/homedetails/1952-S-15th-St-Omaha-NE-68108/75836708_zpid It is for sale for $50,000.00 Sale Cost - $35,000.00 Utilizing the 70% rule, I would be making an offer of $35,000. Fixed Cost - $10,000 Fixed costs would be 10% of retail value according to J. Cole. Similar houses are for sale in the area for $135,000 for completely renovated houses. I am looking to just put in new flooring, paint, and countertops (low end due to the area). I believe I could sell this house for $100,000 after a quick rehab. Rehab Costs - $20,000.00 Although flooring, paint and countertops won’t cost $20,000.00, from the pictures it seems some of the meters may have been stolen, so I am concerned that copper thieves may have gotten to it, so this accounts for unknown costs. Loan Amount - $65,000.00 This is the amount that I buy the house for, plus fixed costs, plus rehab costs. Loan Payment - $1625.00 I figured this by utilizing an annual loan rate of 10%. $65,000 *10 = 13,000/12 = 541.67. With the rehab/sale taking 3 months, I have accounted this expense for $1,625.00. ( I am not sure if this is already taken into account in the fixed costs or not) Profit - $33,375.00 This is determined by taking the Sale of the house, less the loan amount, less the loan interest Sale price 100,000 – loan 65,000= $35,000 $35,000- loan interest 1,625=$33,375 $33,375.00 = $Profit I feel like this is a huge profit, and am afraid that I am missing something. Any and all critiques are welcomed. Thank you, Tony

looking at single family homes in the Aksarben/Midtown/Benson area with 3 bedrooms, at or below 140K, often times less.

I am also checking out rental sites to determine price of rent and have found that a 3 bedroom in those areas rent for 1200-1500.  Which would be a greater return rather an buying a 200K turn key house in Millard which would rent for the same, but mortgage would be more, thus eating into profits.

I’m looking for properties that have a higher % of return, and believe that focusing on young professionals, and med students would be a good market to get into.

I’d love to be added to the meet up!  PM sent!

Back story, My wife and I moved from Omaha to Phoenix for Work 7 years ago. 6 years ago we bought our house in Phoenix for $157,000. I got another job opportunity in Omaha and we moved back. Before we moved, we toyed with the idea of keeping our Phoenix house as a rental, but ultimately decided to sell it, netting a little over $70,000. We have used some of that money to pay off student loans, and other debt. We were going to use the remaining to reamortize our loan. When we looked into it, the $30-40k that we were going to apply to it would only decrease the payment by a couple hundred dollars a month. So instead we are looking to buy a rental property, and I’m looking to make a few contacts to help us start investing into rental properties locally and answer some questions. -Tony

Back story, My wife and I moved from Omaha to Phoenix for Work 7 years ago. 6 years ago we bought our house in Phoenix for $157,000. I got another job opportunity in Omaha and we moved back. Before we moved, we toyed with the idea of keeping our Phoenix house as a rental, but ultimately decided to sell it, netting a little over $70,000. We have used some of that money to pay off student loans, and other debt. We were going to use the remaining to reamortize our loan. When we looked into it, the $30-40k that we were going to apply to it would only decrease the payment by a couple hundred dollars a month. So instead we are looking to buy a rental property, and I’m looking to make a few contacts to help us start investing into rental properties locally and answer some questions. -Tony