30k plus profit in D area flip? Possible?

[Jonathan R.]

Well, here we go folks, I’m ready to lay this to bed once and for all. For years I’ve read from B and A class investors, others trying to scare me off of buying and renovating D class properties. They’d write, “It will never appreciate.” And... “It is worth 20 grand today and it will always be worth 20 grand.” Yada Yada. Today we put this all to the test...

My year long section 8 tenant is moving out this weekend, her lease is up at the end of the month. I called my realtor and said I would list the house with him while we look for another section 8 tenant paying $795 a month if he could get me a crazy number like 50k. I bought the house roughly two years ago for 19k and did a 10k renovation. It is near a major University on the edge of a rough area. After looking at comps, understanding our renovation, my realtor said he is comfortable at 66k, but can push it to 69k. 

It feels great to hear those numbers, I’ll report back if I am in fact the genius I always hoped I was. To my never buy in rough area naysayers, I have nothing to report yet, but I’m putting you on notice that pigs are going to fly on this one. 

[Jonathan R.]

@Jared Viernes @Shardae Robinson @Jimmy Dang @Jason Lavender @Shane H. @James Galla @Dennis M. @Melody Kushi @Caleb Heimsoth

This has been an interesting couple months for me and I want to share my ending revelation from all this. Perhaps this is a topic of its own but I figure I’ll share here. For me, this is all bigger than money. One of my disabled Section 8 tenants (he’s been with me the whole time, cool dude) had a stroke and was in the hospital for a month. His sister apparently flipped a switch or something on his refrigerator during his hospital visit and all his food spoiled. I was there last week with my contractor, my tenant didn’t realize apparently how bad his house stank, so we aired out the whole house and sprayed the fridge and put baking soda in there to help the smell for 30 days or so. The quality of this man’s end of life will be drastically impacted by my company, big responsibility.

I volunteer coach 5 soccer teams and while congratulating one of my players, I noticed his teary eyed mother, whom I have come to know at a distance over the last few years; I immediately asked the matter and she quietly let me know they were living in a hotel and were officially homeless, she said her mother hadn’t spent the rent and bill money wisely. I asked her to call me if they get to where they need to check into a shelter and I may be able to place them in one of my properties, she appeared open.

I’m proud of what we (my wife and I) have accomplished in the last three years. Financial freedom is tough with rental properties, it’s crawling to financial freedom. I’ve learned to be okay living with next to nothing in order to be able to invest in areas of the city that need investment. Now that I’m probably 3/4 or so to fi, I don’t care about materialistic things anymore (my wife and kids might), I’m concerned with providing a job for my contractor, an amazing home for a 65 year old minority man, a place to go for a struggling 8 year old soccer player and his mother, painting graffiti off dilapidated houses in areas that need leaders etc. 

This house may sell for a great profit, at which I’ll roll every dime into more properties, but this is bigger than me. Removing blight, facing injustice, working hard, rewarding others, being bigger than one’s self. To my BP friends, please keep spreading the word of financial freedom, it’s bazaar how you feel when you get closer and closer. Life for me is about beginning the transition from being selfish to selfless. Thank you for your friendship.