All Forum Posts by: Andrea Castor

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.

My husband and I are starting out with about the same amount of cash. After doing our research we would like to pursue the BRRRR strategy slowly, buying 2 properties a year and one yr 5 we'll start selling 2 a year, thereby making a good $100kish income a year with fairly low risk. That way we can both work part time jobs and spend more time as a family.

Our first step was finding a great realtor, and getting an email set up so when anything hit the market within our search criteria we could look at it within the first day on the market. We would run the numbers and if it worked, we'd make an offer. We've lost out on a lot to higher bidders, but if its not meant to be, well, its not meant to be.

We are finally in the works on property #2. Lots of potential renter interest and even had a few interested in buying. We have talked with the small local bank on other prop is financed through and they said we could use the cash to close, then refinance starting on Day 1 based on our track record and credit history. We may just flip and sell. We'll see how the cards play out....

Meanwhile, we are keeping our eye out for the next deal. I'd love a multiplex and one where we can use a property manager, but so far haven't seen any deals in the A/B/C+ neighborhoods I search...

Best of luck to you!

We are in the same position right now, with one, soon to be two properties under our belt. We'd like to form an LLC, and are looking in how to do this. We have a meeting with our CPA next week, but I was quickly told my another CPA friend that we want the LLC to be in one person's name, not both, for tax purposes. Not sure I fully understand why so I have to look into that further.....

We are in a similar situation where the suburb of Cincinnati we are trying to move into doesn't have a ton of houses for sale. Houses are selling within hours of being listed. I've started putting my feelers out for FSBO possibilities and came across a few leads. The most probable one was very clear they want no realtors involved because they like to do things on a personal level. Personally, I appreciate that. This will also be our primary residence.

So far we have been given a price. It's a little higher than I had hoped, but only because of my budget, I think the price is fair. We are doing a walk through in the next month after they do some remodeling (new paint, carpet, etc). If all goes well I plan on paying outright for an inspection. Assuming that all goes well we'll have a lawyer draw up a contract (which we also plan on paying for). I figure the appraisal will be done during the financing process so I'm not super worried.

We havent closed on the property yet. Cant sell something we dont own. so "offers" were verbal not of the contractual type. If I got $25k for doing nothing, heck ya my first option would be selling it! Just wasn't the original plan...

Thanks for elaborating. Im more than willing to be $2k away from the 70% rule for a place this easy. :)

I was really planning on renting but I've got two people interested in buying already when I listed for rent....crazy!

ok, I see what you are saying about it not being a true BRRRR deal because I'm leaving some of my own money in the deal. $2k, plus little closing costs (cash closing) is something Im perfectly fine with. It's an A+ neighborhood, needs just a good clean to be rentable (perfect since my husbands landscape business is about to go crazy for the season), and will rent fairly easy. I was also being fairly conservative as I could take out 80% of appraised, but the interest rate would be a little higher. I was just trying to repeat the 70% cash refi like we did on our other condo because the bank was totally open about that.

That being said, we are doing the BRRRR plan where on the 5th year you start selling 2 a year and buying 2 new per year. We will not put the $15k into it until then. Once remodeled the appraisal value will come back closer to $110k based on comps (although clearly those will change in 5 yrs). So I still believe it'll follow the 70% rule.