All Forum Posts by: Sebi Ardelean

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $153,000
Cash invested: $35,000
Sale price: $251,000

My first step into the real estate investment journey! Purchased a SFH that needed tons of cosmetic updates. took advantage of the crazy market value increase in 2021 and sold for massive profit. We are now able to use the profit made from this sale to purchase another investment.

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

Honestly, it was not my first choice for investment. But my wife and I wanted the benefits of a SFH (mainly, not sharing walls with neighbors/tenants). We got into the market at the ideal time in 2020 right before the pandemic hit. With the updates we made, and market value increase, it just made sense to exit quickly and cash out.

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

Listed on the MLS. Used an agent and went through the tradition buying process of inspections and negotiation. We were able to get a few items, including major ticket item, paid for by seller prior to closing.

How did you finance this deal?

Traditional financing with 3.5% down

How did you add value to the deal?

Biggest value add items: updated kitchen, updated bathrooms, added patio for outdoor entertaining.

It was mostly cosmetic work with an eye for detail and modern trends

What was the outcome?

All in all we received a check for around 80K after all closing costs. This means we were able to live rent/mortgage free for almost two years and come out with a profit of around 30K.

Lessons learned? Challenges?

Many lessons learned with this one as most of the work was done by myself.

Due diligence is very important. For this deal we ended up finding out there were major sewer issues leading from street to home. We found this out post closing and had no way of proving seller had knowledge or was responsible. A simple sewer inspection would have saved us from having to dig up the entire front yard/driveway and adding a new sewer line.

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

Our agent was Chris Goff of Access Real Estate Inc. He was super knowledgeable especially within the western suburbs of Chicago. If you are investing out there, especially within the Aurora, IL area I would definitely recommend him.

Hello everyone,

I am planning on moving to the Rochester NY area this year. I wanted to reach out to the community ahead of my move to connect with local investors as well as real estate professionals. Want to get my first deal done there as soon as possible.

- would love to know if anyone has any real estate agents they work with that specialize in investment properties
- are there any local meetups happening? maybe a virtual one I could join now from a distance
- I know the area well as I've lived there for about 7 years. Rochester investors, are you investing locally or looking out to Buffalo or Syracuse as well?
- just looking to connect with anyone in the area and gain some local knowledge.

Cheers!

@Timothy Chi definitely a multi, It's the only way I can make it work in my situation. I'd love the get a tri or quad if possible. I was planning on getting something that needs a good amount of work to build equity, but if the numbers work I might just do a turn-key. Especially if I can Airbnb my unit while I'm away 

@Timothy Chi From what I know it seems like that's doable. As long as that's your main address and you don't stay in one place too long as you travel it should be fine. But I'm not completely sure, which is why I wanted to throw the scenario out there for people's thoughts. For travel nursing at least, you actually have to have a main residence to be able to receive the tax free travel stipend.

What do you plan on doing with the property while you're gone? And are you thinking single family or small multi?

@Adam Tafel Thanks! I thought about that. Definitely something to talk to the lender about. 

Here's an interesting scenario that I would love to get people's opinions/thoughts on. My fiance and I are planning on travel nursing for a year. We know where we want to end up location wise after that year. Here's our plan:

1. She would buy a small multi that needs a good amount of rehab work, using the first time home buyer program for 3% down conventional mortgage. 

2. Use that address as the home base for the year of travel nursing (we have to live there for a year anyways with that program)

3. Rehab one side and get a tenant in there

4. While still travel nursing, rehab the second side and get it ready for a tenant

5. Once our year of travel nursing is over we can "move out" of that house and put a tenant in the second unit

So we are expecting to have some time where one of the units is technically vacant. It's actually our place but we wouldn't be living there because we'll be traveling. The reason we came up with this scenario is because my fiance doesn't want to live next to our tenant. Travel nursing pays you a housing stipend which would cover for the vacancy. 

This is a lot of info, but I would love to hear what people think. Have you done something like this before? Do you see any implications with doing something like this?

Thanks!

@Joseph A Henke welcome to the area! If you're at all interested in the Aurora area let me know. I know a few great people out there. I myself just moved there. Message me if you're interested. There are some great cash-flowing house hack opportunities out there 

@John Warren thanks for the reply. It’s only a duplex. I’m assuming that’s not large enough for your GC? Thanks!

Hi there!

I’m looking for some reliable general contractors in the Aurora IL area. I’ve got a multi-family rehab project coming up that is going to need some serious work. If you know of any please reach out.

Thank you!

@Bob Green @Aaron Mikottis I know it’s been a while since anyone posted on this thread but I was hoping to get a renewed outline of the area. Is the info still reliable. From what I’m seeing this seems like a great area for rental income. Would love to hear your thoughts. Thanks!