All Forum Posts by: Johnny Crane

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $25,000
Cash invested: $60,000

I purchased this home to flip in mid-February of 2023 off market for $25,000. It was in rough shape! We are nearing the end of the rehab and intend to list it for sale in mid-May. The pros are it is nearly 1,800 square feet, it has 4 bedrooms, 2 bathrooms and a 3 seasons room. It also has a large backyard. The cons are that the layout isn't super functional, it doesn't have a basement and it is only a 1 car garage. However, comps are in the $180,000 range so I'm anxious to see what the market has to say about it when we list in a few weeks. I'll post an update when we list it with some before and after photos!

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

Numbers made sense

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

Off market. One of my real estate clients knew relatives of the owners.

How did you finance this deal?

Cash

How did you add value to the deal?

complete remodel

What was the outcome?

Still working on the rehab but I'm hoping to list by mid May

Lessons learned? Challenges?

I want to challenge myself to find more contractors for the next project to keep prices down and be less hands on.

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

I am a realtor so I handled the deal myself

@Nicholas Middleton sorry to hear about the issues with the previous tenants. you live and you learn! I have a pretty solid rental contract I can share if you are interested. it covers issues like early lease termination and late payments so you are covered. Not sure if its the best but others have thought its pretty good. I'm also looking and refusing to buy anything on the market because it is so high. I'm actually getting ready to roll out a direct mail campaign in my area to see if I can generate some leads that way.

@Courtney M. thanks and yes, I've definitely considered it but since my properties are updated, they really require very little oversight. I'm currently looking for more single and multi-families at the moment so there will come a point when I just have too many to handle on my own and then I would like to hand it off. Are you looking for more properties in the area? let me know if I can help in any way! I'm a licensed realtor and know the area well :)

@David Bowles - I haven't done anything new since I purchased a duplex in Linden 18 months ago. I am starting to look again for a multifamily preferably in the Fenton area. There seems to be a strong rental market here and the city itself is growing more so than the surrounding areas. If you need help looking at properties in and around Fenton, I'm also a realtor and would love to help!

Update on this property: I have now had a bad tenant experience:( I went against my gut (which I'll never do again) and rented to someone I had a bad feeling about. 6 months later, I told her that she needed to find a new place to live. In the end, she quickly left and it wasn't much of a headache but it was heading there for sure. I had to sit on it for a month and a half but I now have a really good tenant in that unit. The other side has been rented for a year to a great guy how has taken amazing care of the place and been extremely reliable. Hoping he stays!

Thanks Nicholas!

I've been an agent for 3 years now with Berkshire in addition to my day job. I also am an executive at an automotive company in Novi :) 

Hi James. What area are you focusing on? I'm renting it for 1,270 a month and clearing close to 600 each month

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $67,000
Cash invested: $28,000

I bought this property after it had sat on the MLS for a few months. The reason this house caught my attention was that it was listed as a 2 bed 1 bath but it had over 1,000 sq ft. This made me believe that a 3rd bedroom could be possible. The house essentially had 2 living rooms so I was able to frame a wall and closet in for a very good sized 3rd bedroom.

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

The house needed updating by the bones were good. I also saw an opportunity to convert it from a 2 bedroom to a 3 bedroom

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

Off the MLS. It had been on the market for several months as it was overpriced. They had just reduced the price a little and I came in with a pretty low cash offer but it got them to start negotiating.

How did you finance this deal?

Cash

How did you add value to the deal?

Almost a complete renovation was done. New siding, windows, refinished the hardwood floors and added new flooring, extensive drywall repair and a new kitchen

What was the outcome?

I bought the house for 67k and put about 28k into it. The renovation turned out great and I was able to get a premium for rent. The home also appraised for 125k after the renovations so I was able to pull out almost all of my money to buy another rental.

Lessons learned? Challenges?

Don't try to do everything yourself! there were things that I probably should have contracted out to save time but in the end it worked out.

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

I can recommend a few great contractors!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $67,000
Cash invested: $28,000

I bought this property after it had sat on the MLS for a few months. I made a very low offer and after a little back and forth, we were under contract. I was able to purchase this house with cash which helped save money throughout the rehab. The reason this house caught my attention was that it was listed as a 2 bed 1 bath but it had over 1,000 sq ft. This made me believe that a 3rd bedroom could be possible. The house essentially had 2 living rooms so I was able to frame a wall and closet in for a very good sized 3rd bedroom. The renovation took me about 5 months as I did about 75% of the work myself. I then rented it out to a couple young professionals who have actually improved the property since they've lived there (Best tenants ever!). About 9 months in I had the house reappraised and did a cash out refi which allowed me to purchase a duplex in Linden.

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

The house needed updating by the bones were good. I also saw an opportunity to convert it from a 2 bedroom to a 3 bedroom

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

Off the MLS. It had been on the market for several months as it was overpriced. They had just reduced the price a little and I came in with a pretty low cash offer but it got them to start negotiating.

How did you finance this deal?

Cash

How did you add value to the deal?

Almost a complete renovation was done. New siding, windows, refinished the hardwood floors and added new flooring, extensive drywall repair and a new kitchen

What was the outcome?

I bought the house for 67k and put about 28k into it. The renovation turned out great and I was able to get a premium for rent. The home also appraised for 125k after the renovations so I was able to pull out almost all of my money to buy another rental.

Lessons learned? Challenges?

Don't try to do everything yourself! there were things that I probably should have contracted out to save time but in the end it worked out.

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

I can recommend a few great contractors!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $67,000
Cash invested: $28,000

I bought this property after it had sat on the MLS for a few months. I made a very low offer and after a little back and forth, we were under contract. I was able to purchase this house with cash which helped save money throughout the rehab. The reason this house caught my attention was that it was listed as a 2 bed 1 bath but it had over 1,000 sq ft. This made me believe that a 3rd bedroom could be possible. The house essentially had 2 living rooms so I was able to frame a wall and closet in for a very good sized 3rd bedroom. The renovation took me about 5 months as I did about 75% of the work myself. I then rented it out to a couple young professionals who have actually improved the property since they've lived there (Best tenants ever!). About 9 months in I had the house reappraised and did a cash out refi which allowed me to purchase a duplex in Linden.

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

The house needed updating by the bones were good. I also saw an opportunity to convert it from a 2 bedroom to a 3 bedroom

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

Off the MLS. It had been on the market for several months as it was overpriced. They had just reduced the price a little and I came in with a pretty low cash offer but it got them to start negotiating.

How did you finance this deal?

Cash

How did you add value to the deal?

Almost a complete renovation was done. New siding, windows, refinished the hardwood floors and added new flooring, extensive drywall repair and a new kitchen

What was the outcome?

I bought the house for 67k and put about 28k into it. The renovation turned out great and I was able to get a premium for rent. The home also appraised for 125k after the renovations so I was able to pull out almost all of my money to buy another rental.

Lessons learned? Challenges?

Don't try to do everything yourself! there were things that I probably should have contracted out to save time but in the end it worked out.

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

I can recommend a few great contractors!