All Forum Posts by: Jordan Noble

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $167,000
Cash invested: $16,700

Norwood Turnkey Duplex

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

I already owned other properties in norwood and knew this would be a great longterm rental.

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

Wholesaler brought this deal to me.

How did you finance this deal?

I was in the middle of 3 flips when this deal was brought to me and had no cash of my own available to purchase it. I knew it was way undervalued so had to put it under contract.
I got a loan from my HML for $150,300 and then got a private lender to fund the other $16,700

How did you add value to the deal?

I raised the rents but other than that this property was in perfect shape. The old landlord just had so much going on professionally and this was his only rental property so any time there was a call or issue he lost his mind and needed to offload it.

What was the outcome?

This property appraised for $235k after 6 months with no rehab done to it whatsoever. I did a rate&term refinance to put the $150,300 note on a 30-year fixed 4.5% mortgage and paid off the private lender with cash. Since it is a 2-family i wasnt going to get much cash from a cash-out refinance since conventional can only do 70% on multi's so i took the better interest rate and went with a rate&term.

Lessons learned? Challenges?

I wish i would have recorded the private loan as a 2nd lien on the property. This would have allowed me to do a rate&term refinance of this loan along with the 1st lien at a 75% LTV ($176k which would have more than paid off both loans). This forced me to keep about $20k in this deal but to have $20k cash left in a deal that has $85k equity (probably more like $100k now) is not the end of the world.

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

Bethany Ritchey with Fairway Mortgage does all of my conventional lending.
MMLending based in Louisville KY does all of my Hard Money Loans.

Leanardo,

I dont have much experience in Dayton but do a lot of investing in Cincinnati. I would highly advise you sharpen your skills on construction as the market we are in requires you to be able to take on any size of rehab to really make the BRRRRR work the way you want. With that said, i dont think there are any types/years of construction to avoid although I have ran into some investorss with preferences (bricks being the largest preference)

Hope this helps!

@Adam Wald I personally use John Walko w/ EquityTeam and have had a good experience for my properties.  

I have clients who use Bri Liechliter w/ Cardinal Property Solutions and have liked her.

 @Andrew Geier https://cervonicpa.com/

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $125,000
Sale price: $262,500

Purchase Price: $125k from a wholesaler
Purchase Closing Costs/Rehab Costss/Holding Costs: $78.5k
Selling Costs: $17.5k

Sale Price: $262.5k
Profit: $41k

2bed/1bath Cincinnati cottage with 1,049 square feet and a one car detached garage

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

This deal was from a wholesaler who posted it in a local facebook page - i believe i paid his asking price at $125k or I might have been $5k-$10k below the asking price but regardless bought it for $125k

How did you finance this deal?

Financed this deal with Hard Money Lender (Kiava) and put 10% down of the purchase price and financed 100% of the rehab at 9.5% interest (cant remember how many points i paid)

How did you add value to the deal?

Full rehab

What was the outcome?

Sale at $262,500 for about $41k profit

Lessons learned? Challenges?

Biggest lesson learned on this property was to just replace a furnace if it needs it. I tried to hang on to a 15 year old furnace and get it serviced and ended up spending over $1k on service before it finally completely blew and had to get replaced anyway. furnaces are an easy swap when not doing any ductwork and it really gives the property a finished feeling to the end buyer when they dont have to question any of the mechanicals.

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

Kiava is a lender i wouldnt recommend. it was a real pain to get construction draws and relative to other HML i have used now they have expensive fees

@Artur A.

Would love to hear more details about this specific deal.  Neighborhood, current rental rate, purchase price?  That is another determining factor on how extensive you can get with your rehab and still get a return.  

Overall though, the cost on these don't seem outragous by any means and are mainly functional fixes rather than going over the top on cosmetics so at face value this seems like you should be able to comfortably move forward with it

@Nick Webb shoot me a text and i can send you some referrals. 

I've worked with multiple and Cervoni CPA is who i would recommend.  This is a smaller firm who specialize in real estate.  Their prices are extremely reasonable which is always a bonus but they provide better service and knowledge than some of the bigger real estate specialists. 

Hi Dominic - sounds like you got some great answers regarding ludlow.  My first rental was a condo in ludlow (River's breeze) which i had just moved out of.  

Ludlow has become increasingly popular in the past couple of years and i would definitely recommend it for rentals / long term holds as i think there is good growth opportunity.  

ONE THING TO LOOK OUT FOR - ludlow has a few streets that are very prone to flooding because of the proximity to the river.  Make sure you do your due dilligence on this if you are purchasing properties off market / have to make quick decisions.  

@Tom Edel - $200k ARV is achievable in some B+ markets, depending on the finishes you are using.

Parts of Norwood, Madisonville, Pleasant Ridge, Kennedy Heights. Everyone has a slightly different definition for "B+ neighborhoods" but these are nicer areas that could have some 2/1 cottages that could ARV at $200k.

This leads me to my next question - Why restrict yourself to a $200k ARV?