All Forum Posts by: Andrew Hahn

Hello All! 

I'm an early 30's professional looking to get back into real estate. I have limited experience in flipping, but I'm looking to BURRRR and Buy/Hold. Being from Chicago, I'm looking to invest either out of state (or at the very least out of the Chicago area). I'm originally from St. Louis; so, that market intrigues me. 

I am also on the realpro.com email list. Some of the properties that come across my screen from them look interesting and like they may have potential. Has anyone ever purchased property from/through/listed with realpro.com? If so, I'd love to hear your thoughts. 

Thanks!

Yeah, let me know how it works. My family lives in Lawrence County, IL. So, I'm familiar with the area, and I know there are a few key players. 

I have an idea about an exit strategy for rural areas, but I'm a long way from that being relevant. 

I'm not entirely sure if this is the proper subforum, but I was wondering if anyone is investing in Vincennes, Indiana. It has a couple things going for it, and some things not. 

Positives: 

-Vincennes University: The school runs undergraduate enrollment of about 18,000. 

-The rents seem decent for a small town ($500-600 per unit). 

-The real estate is cheap. 

-The population ebbs and flows, but it seems pretty stable at around 18,000 residents. 

-Indiana law is relatively favorable to landlords. 

Negatives: 

-Lower median income at 34,641. 

-The market is flooded with low price houses. 

-Difficult exit strategies due to the rural location. 

Even if you are not in Vincennes, has anyone else had success in a similar market? 

As for some specific deals: 

House #1: Just outside of city limits

Asking Price: $25,000

ARV: $60,000-70,000

Rehab costs to flip: $15,000

Rehab costs to rent: $10,000

Estimated rent: $600 

3/2 1392 sq feet

Apartment Building #1

Current rent per unit: $450 

Units: 12

Asking Price: $495,000

Built: 1977

Alleged operating income: $49,500 

I have not received any rent rolls, income statements, etc. at this time. I am hoping the cliff notes version will be enough to solicit feedback. 

House #2: Foreclosure

Asking Price: $31,000

ARV: $45,000-50,000

Rehab costs to rent: $5,000

Estimated Rent: $550

2/1 859 sq feet 

I believe the houses hit the 2% rule. As always, a risk with low value rentals is that CapEx will destroy you if/when it happens.

Any thoughts would be appreciated. Thanks!

 Thanks! 

We had some help from my father-in-law. He's a former flipper. 

As for the re-model. I regret not really re-doing the kitchen. But, when we found out we were moving we needed to get it to market quicker than initially thought. We also left a considerable amount of money on the table, but we wanted to get the money out pretty quickly. 

 Thanks! 

I see you are in the Chicago area, I look forward to meeting new people and getting established up here, both in law and hopefully, real estate.

We just completed our first real estate deal, it was a four year live-in flip. Our original plan was to purchase the house, live in it for a while, and turn it into a rental. However, my wife's job relocated us to the Chicago area.

I am a young lawyer.

Bear with me because I'm a new and still learning how to properly value and present the numbers. Here's my attempt:

Location: St. Louis, MO

Purchase price: $50,000 (short sale)

- aunt was agent, so fee was waived (she was helping us out)

- borrowed money from grandma for the down payment: $13,000

Material costs: $8000

I forgot to itemize everything over the course of the four years, but the improvements were:

-blown in insulation

-tile floor in kitchen

-new bathroom flooring x2

-new basement carpet

-new basement flooring (previous was rotted through)

-new carpet in bedroom x2

-hard wood flooring refinished

-new refrigerator

-painted entire interior of the house

-installed two custom closets in bedrooms

-repaired and repainted the garage

-tore out dinning room drop ceiling, installed drywall ceiling

All the work was done by us, save the hardwood floors.

Sale Price: $108,000

less:

-$6000 in fees (man I need to get a real estate license)

-$5000 in concessions

Net: $43,000

$108,000

-$33,000 left on the note

-$13,000 to grandma

-$6000 fees

-$5000 concessions

-$8000 material costs

The problem that I have is how to value this in terms of holding costs. Our mortgage was $410 on the property, whereas we were paying rent of $725 before purchasing this. I tried to comp the rentals in the neighborhood, and if we had not purchases, I am convinced we would not have found a 2/1 for anything less than $600 (most were closer to $900).

Pictures before:

After Pictures

It was a great experience, and I am looking forward to getting into the real estate game here in the greater Chicago area!

Thank you. I've been listening to the Podcast for quite a while now. It is what brought me to the forum. 

Right now, I am in the knowledge accumulation phase, with a load of books and articles I want to get through.

We just completed our first real estate deal, it was a four year live-in flip. Our original plan was to purchase the house, live in it for a while, and turn it into a rental. However, my wife's job relocated us to the Chicago area. 

I am a young lawyer. 

Bear with me because I'm a new and still learning how to properly value and present the numbers. Here's my attempt: 

Location: St. Louis, MO

Purchase price: $50,000 (short sale) 

- aunt was agent, so fee was waived (she was helping us out) 

- borrowed money from grandma for the down payment: $13,000

Material costs: $8000

I forgot to itemize everything over the course of the four years, but the improvements were: 

-blown in insulation

-tile floor in kitchen

-new bathroom flooring x2

-new basement carpet

-new basement flooring (previous was rotted through) 

-new carpet in bedroom x2

-hard wood flooring refinished

-new refrigerator

-painted entire interior of the house

-installed two custom closets in bedrooms

-repaired and repainted the garage

-tore out dinning room drop ceiling, installed drywall ceiling

All the work was done by us, save the hardwood floors.

Sale Price: $108,000 

less: 

-$6000 in fees (man I need to get a real estate license) 

-$5000 in concessions

Net: $43,000 

$108,000

-$33,000 left on the note

-$13,000 to grandma

-$6000 fees

-$5000 concessions

-$8000 material costs

The problem that I have is how to value this in terms of holding costs. Our mortgage was $410 on the property, whereas we were paying rent of $725 before purchasing this. I tried to comp the rentals in the neighborhood, and if we had not purchases, I am convinced we would not have found a 2/1 for anything less than $600 (most were closer to $900). 

Pictures before: 

After Pictures

It was a great experience, and I am looking forward to getting into the real estate game here in the greater Chicago area!

Hello, 

I am a young attorney looking to learn about real estate investing, with an eye towards getting involved in the near future. 

I do have one deal under my belt, a live-in flip. While living in St. Louis, my wife and I bought a short sale home for $50,000. We lived there for about 4 years, put in about $8000 in materials, and put in lots of work. 

We just sold it for $108,000. 

I look forward to meeting everyone and learning a lot!