All Forum Posts by: Andrea Castor

@Carl Amko We won the auction on Dec17th, 2018. There was an issue though in that Wells Fargo (2nd mortgage) had sold it online for $33k. They were actually trying to sell it a 3rd time as well. So it went through litigation for several months. We finally were given the go ahead in late March. My husband did most of the work himself around working full time and having 4 kids in activities. I listed around mid July, had it completed july 30th and renters moved in Aug 1st. 

Investment Info:

Other fix & flip investment in Centerville.

Purchase price: $49,200
Cash invested: $15,000
Sale price: $87,500

2 bed, 1.5 bath condo

What made you interested in investing in this type of deal?

It was across the street from our first investment property

How did you find this deal and how did you negotiate it?

We had heard it was going to hit the MLS

How did you finance this deal?

20% down, 30 yr mortgage

How did you add value to the deal?

Complete gut

What was the outcome?

Rented for 2 yrs then sold

Lessons learned? Challenges?

PATIENCE! I should have waited for another set of good renters instead of selling.

Investment Info:

Other fix & flip investment in Washington Township.

Purchase price: $65,400
Cash invested: $12,000
Sale price: $101,000

2 bed, 1.5 bath condo

What made you interested in investing in this type of deal?

Our very first deal. We learned how to find renters, how to set up the renter/landlord relationship, etc.

How did you find this deal and how did you negotiate it?

My mom was a realtor at the time and said we had to buy it.

How did you finance this deal?

$12,000 down (20%), small bank at 5.5% for 30 yrs

How did you add value to the deal?

Nothing except toilets and a doorbell

What was the outcome?

Rented for $1050/mo for 6 yrs (only two different tenants) and sold when the market went back up.

Lessons learned? Challenges?

Hard to see the properties now selling for $120k

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Amy Faler!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $83,600
Cash invested: $30,000

3 bedroom, 1.5 bathroom brick ranch 1201 sq ft

What made you interested in investing in this type of deal?

Our first time buying at county auction.

How did you find this deal and how did you negotiate it?

Property was offered at our county auction the Monday before Christmas. It was the only property being auctioned that day so only one other bidder.

How did you finance this deal?

Cash

How did you add value to the deal?

Complete gut including adding air conditioning

What was the outcome?

BRRR, pulled out $114,000 @ 4.125% for 30 yrs. (Pulling out 100% of funds, leaving $56k equity). Renting for $1400/mo.

Lessons learned? Challenges?

We had never purchased at auction before so lots of lessons learned with how to bid, how to deal with moving current owner out, etc.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Single-family residence buy & hold investment in Dayton.

Purchase price: $52,500
Cash invested: $25,000

3 bed, 1 bath 1080 sq ft brick ranch

What made you interested in investing in this type of deal?

Cash flow potential

How did you find this deal and how did you negotiate it?

Listing was listed in another town accidentally. My husband went to see it anyway knowing where it was. All original but we put in a low offer. The owner was going to a nursing home so took it.

How did you finance this deal?

Cash

How did you add value to the deal?

Inside needed new bathroom, new furnace, water heater, kitchen, flooring, paint. Outside eventually needed room, windows and driveway.

What was the outcome?

Just refinanced at $115,500, 30 yrs fixed @ 4.125%!

Lessons learned? Challenges?

This was our first rental in a more up and coming B- neighborhood. After many less desirable applications, we lowered our standards and spent a year starting the eviction process each month till the tenant paid. Learned how to not renew a lease and not return a deposit.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Amy Faler!

We have been part time investors in the Dayton, OH market since 2012. We bought our first sheriffs auction property this past Dec 2018. Despite is going to litigation for being sold multiple times, I would say overall it was a really good experience. 

Yes, we seem to keep getting in this condo niche. Our first two rentals were condos in the same complex, then this was also an upscale condo. They just take FOREVER to sell and patience is not our strong suit. :P

Although we've been doing real estate casually since 2004 (when we we're 19), this is our first real flip deciding we'd like to do this as another income stream. In the past we did a live n' flip (2004 - 2007), purchased a rental property in 2012, and did another rent n' flip from 2013-2015. These past properties gave us the funds to make a cash offer on the flip.

We found the property through the MLS. I actually saw it the day it was listed but with 4 young kids at home, we just had to much to do. A couple days went by and it popped u in my head to check. They were taking offers till noon that day. My husband rushed over to take a look and decided to make an offer, $15k above list price. It was also a condo, which was risky, but a growing area on a golf course so we went for it. What was supposed to be a 2 week close turned into nearly a month so being at a standstill on starting renos was less than ideal.

Finally closed on the property Apr 15. Husband wanted the property on the market by May 1st so he went straight to the condo after closing to rip out carpet. The property was only 3 years old but in desperate need of a deep deep cleaning. Every surface had to be touched.

Over the next two weeks, my husband would work his normal job 3am-8am at UPS, then his lawn business till 5, then would head to the condo and work till he couldn't move any longer. Every surface was painted, flooring was contracted out, and lots of date nights cleaning with bleach and Dawn dishsoap!

After 2 weeks of exhausting work, we put it on the market. Lots of showing but no offers because there wasn't assigned parking, no balcony like other models offered in the complex, and no garage. We were at the point where we decided we were going to have to rent it (exit strategy #2). I had even listed it and received over 50 calls in the first day when we got an offer. It was lower than expected but worked out.

Final numbers (although I need to keep spreadsheets next time to be more exact):

Purchase price - $80,00

Renovation repairs - $5,000

Other expenses including HOA, taxes, commission) $6,000

Total profit: $20,000

Here are a few pictures of the after. We dug in so quick that we didn't get many before pictures but I will try to find some and post...

I also agree to look local. We had the hardest time financing a condo period as a rental property. We had to initially borrow the cash from my parents. Thankfully we kept asking around and found a great local bank.

Thanks @Adam Bontrager and @Ned Carey. I was planning on meeting with our CPA to get their advice and then meet with a recommended real estate attorney to see what they have to say. Study up the pluses and minuses of each in the state of ohio and proceed from there.