All Forum Posts by: Andrea Castor

If I were in your shoes, I'd pass. Even with the perfect end buyer lined up, the profit margin is just way too small for me. $100k in it (plus time) to get $105k. Or are they willing to pay $105k as is (hence the double close)? 

I think this is a great reason to network. Pass the lead along to someone else knowing they'll be in the same position soon. What comes around, goes around. 

Agree, I use Zillow and craigslist and also calling around to the larger complexes and pretending I'm a perspective renter. I then try and see what finishes the competition has in their rentals and do mine just a touch nicer. I try to find features, like an attached garage or include high end front loading washer and dryer to give my property a leg up. Using this, I have always been able to price at the top of the market, find good tenants quickly, and keep them there for an extended period of time. I also like to point out the advantage of dealing with a personal owner vs a large rental company when they need something fixed (which I personally think IS worth something).

Sadly, you don't even need to follow divorce filings. As a mom of 4 young kids you just have to go to the gym, PTO meetings and soccer games. Ha! That being said, after 4 years even with great renters, we're done with the rental side. To slow for us in terms of investment and I can't stand the couple days of showings in between renters and people who expect you to wait around for an hour till they get there. Or dropping everything because their toilet handle feels jiggly or they think someone is in their attic.  

So I guess that would meet your qualifications. Purchase $89k, $2k taxes, $1800:

12,000/92,800 is just under 13%. 

If you purchased it without a realtor involved you could save a couple thousand too. we were one of the highest comps in the area. 

I really think our area of Ohio is great for this. We personally purchased a condo/town home for $49k, put in $12k, rented for $1000/mo. Expenses were $2k taxes and $150/mo HOA.

Even turnkey though, we just sold it for $89k, but other units not as nice we're going for $1100/mo. Not sure the exact ROI on that but I still think it's decent.

The best part for me is that $1000/mo here for 1,000 sq ft is not avg rent. It's on the higher side and attracts usually young professional singles or older singles/couples looking to downsize. In 4 yrs with two rentals in this complex I didn't have one late rent, one damage to my properties, no complaints from HOA, nothing. The key in my opinion is finding properties that don't feel like apartments (with the shared hallway that goes to multiple front doors).

Another good strategy here with the good schools is smaller, cheaper homes for newly divorced moms. I know that sounds odd, but I constantly know of ones looking and there just isn't much that meets the criteria. 

Hi Ozzy! Good to hear there are other investors in the area here! It's sometimes defeating to watch these shows on tv in California where the profit margins seem so much larger. In a low cost of living area like Dayton, you sure have to be careful with finishes or your profit will be gone! I work the good old 8-5, but I'm sure the hubby would love to meet up and meet some others in the business.

My husband and I are 33, with 4 young kids (ages 8-2), and while we are not really new to flipping, my husband has been unhappy in his career and has decided to really flip houses instead.

We didn't start out as flippers but I guess more smart first time home buyers. Purchased our first home at 19 for $82k. We literally "scrapped" for our home improvements, collecting cans out of people's recycling bins and at a nearby college. Paid for roof, windows, and finished basement all in cash. Put about $10k in and sold 3 yrs later for $107k.

In June 12 a bank owned condo kind of fell into our laps. It had been on the market awhile, my mom was a realtor and noticed it. It didn't need any work, and we paid $65k. We decided to hold onto it and rent. Found a great renter within days for $950/mo. Made about $300/mo after private loan, HOA, taxes, insurance. Things were going so well....

We bought condo #2 in the same complex. This one was a total gut. Disgusting! As in the kids stayed in the car while we looked, lol. We closed Feb 13 for $49k. Spent about $12k. Rented out to a great couple before we even had the dry wall finished for $1,000/mo.

Renters were relocated in Aug on prop #2, and went through a nightmare of buy/rent situations. Great tenants who's deposit check/1st months rent bounced, first time home buyers who wanted 15% of the asking cost thrown in (closing costs, money for new HVAC/water heater/ac in cash, HOA fees, etc). This is when I decided maybe I'm not landlord material. I can't stand people who cant show up for appointments on time and I can't stand people who can't get their crap together. LOL.

Just closed on condo #2 with a profit of $38k (well roughly $30k after capital gains GRRR). With this new cash, and another $45k cash on hand, we're ready to really get into the flipping business. I'm opinionate though (hard for me to put my heart into a house I would never buy myself) and we've been spoiled on our other good deals that we shy away if the profit just isn't enough. Our realtor pointed us to this site after we found some properties on auction.com so I'm glad to have found this place. Looking forward to learning more and sharing our successes hopefully more than we share our failures.