All Forum Posts by: Yinan Q.

@Michael Niland , yes the purchase and rehab were all cash. I then refinance most out.

@David Rubenstein, it's in Kent/Covington area.

Quick update after two years...

Just realized that it has been two years since my original post. I thought this might be a good time to post an update.

You may all know that the Seattle market has been super hot for the last a few years. This rental did really well.

I refinanced the house last year and pulled all my initial money out. 

Below are the Zestimate home value and rent as of today. Both value appreciation and rent increase have exceeded my expectation. 

The first tenant will move out by the end of February after staying there for 2 years. I will bring the rent up to the market price for the new lease. 

Hello BP, I thought I'd like to share one of my recent flips with fellow BPers.

Let's start with the numbers and some of the before and after photos first:

Purchase price: 82k

Repairs: 40k

Sale price: 249k

Net profit: 83k

It was an easy cosmetic rehab, roof, paint, flooring, and fixtures.

Even better, I was able to fund the purchase and rehab with private money, so no out of pocket money for me.

A few things I learned from this project I'd like to share:

• Be persistent with your marketing and follow-up. The seller called me on the third mailing in November 2016. He wasn't ready to sell at that time. I kept following up with his and finally bought the house in April 2017.

• Hold your contractor accountable. This house is in an area I've never done deals before. It's too far for the contractor I normally work with so I had to find a new contractor for it. I had a clause in the contract specifying a completion date and penalties if the project goes beyond. The contractor ended up passing the deadline and paid the penalty. 

• Do some driving for dollars when visiting the job site. I spend some time driving around the neighboorhood and write down addresses of distressed properties. I landed another deal by doing so, 5 mins away from this house.

Thank you for reading my story. I hope you find it useful.

Here is the update for those who are following this post. We weren't able to buy the house before the auction. The owners divorced a while ago and the wife was the one contacting us. We got her signature by couldn't get from the ex-husband. 

50k profit on a 100k investment is insane. A typical rehab takes 4 to 6 months from key to key (from when you close to when you get paid). That's 100% to 150% annual ROI. Is there another industry that offers a better return than this?

If I could net 50k on a 100k investment, and can repeat it on a regular basis, not just one home run deal, I'd keep my head low and won't tell anyone else about my market, lol. So @Engelo Rumora , thank you for sharing with us. Is anyone else packing up and gold rush to the midwest?

@Angie C. , can you please PM me their contact please? Thank you so much.

Looks like you've already answered your own question. You have to balance between cash flow and appreciation.

@Sam Denny can you elaborate on your requirements when you say a property that could cash flow? For example, how much down pay you will make and what interest rate you are getting? The more down payment you make, the better the cash flow you will get. 

I am marketing for deals to feed my fix and flip business. From time to time I came across properties that are not good candidates for flip but could be good rentals with little or light repair. For example, I just sold one 3/2 single family house in Lynnwood for 325k that will rent for $1,950 - $2,000 per month. Would you be interested in something like that?

@Dave Currence , I came across your post while searching feedbacks for marketing companies. I am wondering who you ended up using for your marketing campaign and how do you like/dislike the service.

Thanks