All Forum Posts by: Chelsea Ziss

Sorry, just saw this! Not section 8, in 43608.

New update, and need some opinions!

All of my income is real estate related. I make real estate commissions, I have a couple rental properties, and am about to embark on my next endeavor, a flip. I'm also looking to purchase a duplex or possibly 4plex.

Right now, both rentals are just in my personal name, with no loans on them. My real estate commissions are 1099'd to me from my brokerage. 

I have an S corp that I've done absolutely nothing with other than file the correct paperwork.

So my question is this - should I quit claim the rentals into the S corp? Should I put them in their own llc?

I'm completing a mini flip right now - bought a house for 18,500, selling it for 33,500, which will leave me 15k capital to be taxed on capital gains. I don't have the time to do a 1031, as I may need the cash for a personal purchase. Should I just suck it up? Or is there a way I can avoid that? I'm so overwhelmed. Help!

That's pretty interesting. There are a couple turnkey companies around me, but I'm not sure of their reputations - most Investors I know just use the MLS search or a realtor. I can tell you in Toledo you can pick up beautiful 50-70k homes just because that happens to be the going rate for houses in that neighborhood. They usually rent for 800-1000 depending on the school district, etc.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $66,500
Cash invested: $20,000
Sale price: $143,000

This was our personal residence that we bought with the intention of using it as an investment.

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

We want to buy our 1st house, but also wanted to make a smart investment decision. We bought it with the intention of doing what we called at the time a "long flip."

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

It was a bank foreclosure home, so we couldn't do a whole lot of negotiating.

How did you finance this deal?

Since this was going to be our personal residence we used an FHA loan.

How did you add value to the deal?

Over about a period of 5 years, we redid the roof, the bathrooms, an update on the kitchen, new paint, new lighting fixtures, basically all the things you do to a normal home you live in.

What was the outcome?

The outcome was awesome. We bought it for $66500, and sold it for a $143000. Over the 7 years we lived there we maybe spent 20 grand total doing the updates.

Lessons learned? Challenges?

Buying the absolute worst house we could find in a nice neighbourhood was absolutely the best way to go. It barely BARELY passed the FHA inspection, and we even had to have a contractor friend write us a letter for the roof. The only thing I do differently, is if we didn't have a newborn at the time, I would have tried to do the same thing but with a 4 plex or duplex instead.

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

Nope. The agent we used at the time was so terrible that it made me want to become an agent myself, so I could do a better job

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $18,500
Cash invested: $18,500

Single family home in Toledo. A bit of an experiment - we've never bought in a D neighborhood, but the cashflow was too good to pass up.

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

Cashflow and seeing how we feel about D neighborhoods vs A/B.

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

I am a real save agent, and set up my own searches for types of properties and interested in so I usually see them before they hit the market. This particular home was part of about 20 homes that got unloaded by investor out of California who wants to focus in a different area.

How did you finance this deal?

We paid cash, 19500. However since I am a real estate agent, I got a buyer's agent fee of $1000, so really only 18,500.

How did you add value to the deal?

I didn't. There's already attendant in there that's been there for 6 months and had a good rent roll, so we roll the dice.

What was the outcome?

I'll let you know in a couple months!

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

I am an agent, so finding the deal was pretty easy. I had some cash left over from a BRRRR deal that was my personal residence, and we used that to make the purchase.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $26,000
Cash invested: $50,000

Single family bought at a tax auction. We've had it rented for 3 years to the same tenant at $850 per month, but could easily go up to 900. Recently appraised at 102k

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

I'm always looking for single family homes in A/B neighborhoods to do BRRRR. this one went a little over budget, but it was our first!

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

Tax auction!

How did you finance this deal?

Peer to peer lending.

How did you add value to the deal?

We had to redo the entire foundation, hack, electrical, and gut kitchen and bathroom.

What was the outcome?

Rocky at first, but great now. Our cash flow has already paid off the amount we spent on the house, and continues to grow.

Lessons learned? Challenges?

Our big issue was we kept putting everything off. What should have taken six months or so, took us 18 months. It wasn't a question of money, just too busy with regular life. We should have time blocked time to get it done.

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

I am an agent ;)

We used sofi for the cash. Worked out well, but we paid it off as fast as we could so we could generate cashflow.

@Adam A. Do you know if that lead based paint will affect just Toledo, or all of Lucas county?

Yeah, It took longer than expected, but I'll have some pictures up soon! Basically, as always with these things, life got in the way for a little bit.

I'm a realtor and investor in Toledo/Maumee/Perrysbyrg, etc. What are you looking for?