All Forum Posts by: Doug Hickey

Investment Info:

Townhouse buy & hold investment.

Purchase price: $59,000
Cash invested: $75,000
Sale price: $194,500

Needed a complete renovation after uncovering safety and structural issues during demo. Upgraded electric, added forced air a/c and ductwork, and new plumbing. Added master bath and laundry on 2nd floor and a half bath on first floor. Using this property as a rental and a cornerstone for my business as leverage and investment. Developed a partnership with a local organization http://www.chepinc.org/ and their mission of providing transitional housing through veteran-only programs.

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

Great location and the property needed major upgrades to compete with the upcoming area

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

Foreclosure alert and drive-by. Worked with an agent familiar with foreclosures and Fanny Mae

How did you finance this deal?

Cash from the sale of a previous flip.

How did you add value to the deal?

Built in 1920, this was a complete gut. Upgraded electric and HVAC to code. Added master bath on 2nd floor, enclosed rear porch and added a half bath on 1st floor. Used old flooring for an accent wall and refinished 100 year old floors on 2nd floor.

What was the outcome?

Appraised for $194k and could have sold for more than I anticipated in this market but decided to work with a veteran transitional housing program to house veterans in need. Win-Win situation.

Lessons learned? Challenges?

Start the refinance process to convert to a conventional rental loan sooner to pay off renovation loan.

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

Local contact and friend was the agent and networked with mechanical contractors. Started a conversation with a framer at the Home Depot for labor if I purchased materials.

Investment Info:

Townhouse buy & hold investment.

Purchase price: $59,000
Cash invested: $75,000
Sale price: $194,500

Acquired through foreclosure. Needed a complete renovation after uncovering safety and structural issues during demo. Upgraded electric, added forced air a/c and ductwork, and new plumbing. Added master bath and laundry on 2nd floor and a half bath on first floor. Using this property as a rental and a cornerstone for my business as leverage and investment. Developed a partnership with a local organization http://www.chepinc.org/ and their mission of providing transitional housing through veteran-only programs.

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

Great location and the property needed major upgrades to compete with the upcoming area

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

Foreclosure alert and drive-by. Worked with an agent familiar with foreclosures and Fanny Mae

How did you finance this deal?

Cash from the sale of a previous flip.

How did you add value to the deal?

Built in 1920, this was a complete gut. Upgraded electric and HVAC to code. Added master bath on 2nd floor, enclosed rear porch and added a half bath on 1st floor. Used old flooring for an accent wall and refinished 100 year old floors on 2nd floor.

What was the outcome?

Appraised for $194k and could have sold for more than I anticipated in this market but decided to work with a veteran transitional housing program to house veterans in need. Win-Win situation.

Lessons learned? Challenges?

Start the refinance process to convert to a conventional rental loan sooner to pay off renovation loan.

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

Local contact and friend was the agent and networked with mechanical contractors. Started a conversation with a framer at the Home Depot for labor if I purchased materials.

Hey all,

I see quite a few properties being auctioned that are occupied. Some auctions seem like a good deal, although, unlike previous years, banks are holding out and attempting to get market value.
It's the buyer's responsibility to remove the occupants as a new owner. I'm sure each state has different laws but with the extended moratorium on evictions as well as foreclosures, this seems like a bad option to acquire an auctioned property. My gut is telling me it'd be best to wait out the state of emergency and moratoriums. 

Has anyone experienced getting an occupied property and being able to flip it in the current Covid situation?

Thanks in advance.

Doug 

@Walter Correia. HomePath is another option. The days to view is listed in the top left side of the page which is open to owner-occupied only in the first 20 days. Then if there aren't any offers it goes to investors. The LLC holding the property knows they'll get into a bidding war from investors on day 21.

I just bought a HomePath foreclosure for cash as owner-occupied. The deal is 1 year and move in within 60 days. However, I paid cash and didn’t finance.

Also check with different banks REO department for your area

Hi Matt,

Thanks for posting (Earned me an award point) lol. I'm still with Homeland Security and retiring later this year now that I've turned 50. Im looking to complete another investment or two before my retirement date and getting my LLC off the ground so I can hit it full speed as my full-time commitment. I'm currently working on acquiring a probate and a flip this week. The probate might be my passive income if I can get it for any back taxes owed. It's ideal, owners passed, no will and no dependents claimed it. No limit on income because the potential is endless. I'll have income from my pension and retirement account for income as well. I have a pretty good team I'm putting together now so that I can get and turn more properties at a quicker rate. How is investing in Columbus working for you? How long have you been an investor?

Doug

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $248,000
Cash invested: $18,900
Sale price: $339,000

Started as a rental for passive income. Made $500/month. Tenants fell behind and were evicted. Typical tenants destroyed the place and even left their crap and their cat that wasn't captured until 2 weeks later. Focused on redesigning kitchen and master bath; hardwood floors; new paint; new carpet. Sold in under 24 hours with bidding war. Probably could've listed for an additional $15k but overall a great ROI

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

Long term investment which began as a rental, knowing it would need some work to sell. Timed the sale for my son's college.

How did you finance this deal?

Conventional loan and self funding. Now using other people's money

How did you add value to the deal?

Update Kitchen bath paint and floors

Lessons learned? Challenges?

I was still working a full time job and traveling which ate up a lot of time for a quick turn. All work was sweat equity.

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

The agent used to sell is now part of my team for buying and flipping