All Forum Posts by: Jordan Noble

@Dave Spooner Yessir still living there! Plan is to stay there for another year and will decide then whether to sell or hold on to it... but yeah i am a huge fan of madisonville.... i have bought 5 single families in this neighborhood in the last 12 months.

Investment Info:

Single-family residence fix & flip investment in Cincinnati.

Purchase price: $155,000

Single Family Live-in Flip

$155k Purchase + $50k Rehab = $205k Project Cost
$250k Appraisal
$200k refinance mortgage

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

This was a live-in flip that my fiancee and i completed. My reason for this type of deal was to gain additional flipping/rehabbing experience while mitigating the risk with it being a property that we were going to live in.

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

MLS - listed i believe at $172k and purchased for $156.5k. Small structural issues that came up during inspection which had scared off previous buyers, allowing us to negotiate hard on the price.

How did you finance this deal?

5% down conventional loan and then cash for the rehab

How did you add value to the deal?

Gut down the studs remodel. Remove 2 first floor walls with engineered headers and added a half bath on the first floor.

What was the outcome?

Appraised at $250k (probably would be $265k by now).
Cash-out refinance at $200k

Ended up with about $5k left in this property.

Lessons learned? Challenges?

The biggest challenge on this property was the budget - being as it was a property that we were living in we ended up doing things that i wouldn't have done otherwise / would have done them in a more cost efficient manner.

Learned how to schedule and manage subcontractors as i was doing about 75% of the work on this property myself and subbing out trades (plumbing, electric, drywall, HVAC).

Hi Tristen,

I currently hold all of my properties with EquityTeam.  I recently transitioned from self management and have had a decent experience so far.  This was a highly recommended PM for me but havent had a ton of time with them (3 months) to be able to recommend them out myself.  My biggest issues so far is that they have had some labor issues on the maintenance staff but this is everywhere and i believe will work itself out in the coming months.  I would recommend atleast giving them an interview.

Hope this helps!

Hi Madeleine - congrats! One of my first ever purchases was in Norwood and I dont think you'll regret it.  Exciting things to come with the Card factory development!

Lamont,

In the City of Cincinnati, you do not need a GC license.  You must have your contractor register with the City of Cincinnati and they will require proof of liability insurance and details of how their business is structured, but their is no GC license.  This registration will allow them to pull the building permits and hire out the tradesman as needed.

Plumbing, HVAC, and electric all DO require trade specific licenses in order to perform any work and pull permits.

Hope this helps.

Hey Daniel - I use Joel Megee with Premier Service Title for both my on-market and off-market/wholesale deals.  Very knowledgeable and easy to work with

Hey Joseph

Great job pulling median rent for both 4/2 and 3/1 to see what the range of rental prices are in the area.  

In regards to renting by the room (house hacking a sfh), this strategy would typically bring more rent than just renting out the entire house to an individual.

For example, median rent for a 4bd/2ba house might be $1850 but if you rent it by the room (individual lease for each tenant, each tenant pays you separately) you might be able to get $500/room or $2000 for the entire house.  

I would dig into more specific comps and look for rent by the room listings in your area to determine more.  Hope this helps a little.

Investment Info:

Single-family residence buy & hold investment in Cincinnati.

Purchase price: $45,000
Cash invested: $26,772

I purchased this property as my first BRRRR. Single Family 2bd/1ba house in Cincinnati OH (Norwood neighborhood)

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

As a young professional with limited capital i knew value-add and refinance was the best way for me to continue do to deals without having to constantly save for capital. The snowball effect could not be more evident to me as I reflect on this deal just 18 months ago. I was hoping at the time to be able to do 2 or 3 deals every year and already I am on pace to do 6 this year with goals of double digit investment deals in 2022.

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

This deal was on the MLS (those were the days) and was right when COVID had hit so there wasnt a lot of competition.

$45k was the list price and was a price i was comfortable paying.

How did you finance this deal?

$50k was borrowed as a small business loan from LendingTree (not a mortgage). I would not recommend this as i paid 7 points (yes you read that correctly) and 9% interest. I wasn't familiar with hard money and just wanted to do a deal. 7 points only came out to $3500 because of how inexpensive this deal was but definitely could have been costly if used on other deals.

The rehab funds were pulled from a HELOC.

How did you add value to the deal?

Complete rehab. Replaced all lathe/plaster with drywall, removed 2 walls to open up the floorplan.

What was the outcome?

$120k appraised value with about $72k invested.

Took out a mortgage of $90k which paid everything back and left me a little cash in pocket.

PITI is $495/month and this rents for $995 (will probably get $1100 when re-rented later this year)

Lessons learned? Challenges?

The biggest lesson learned throughout this deal was gaining a better understanding of the construction of these old Cincinnati homes. Before this I had never dealt with lathe/plaster or knob and tube wiring. Overall though it couldnt have been a smoother first deal and i'm glad it was because as i've dove into more deals since I could see where a lack of motivation could come into play if you run into major issues on deal #1.

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

Varun Varma is the real estate agent who helped me find the deal. He is an extremely savvy investor himself and taught me some things along the way. He was the agent who encouraged me to get into the industry full-time as a licensed agent and how to build a pool of investor clients. Being an investor yourself before being an agent makes this much easier.

Bethany Ritchey at Fairway mortgage for all things residential mortgages. She is an absolute closer.

Investment Info:

Single-family residence buy & hold investment in Cincinnati.

Purchase price: $45,000
Cash invested: $26,772

I purchased this property as my first BRRRR using all cash for the project.

Purchase Price: $45k (may 2020)
Rehab Costs: $27k (did most of the work myself to learn and keep costs down)

Appraised Value: $120k (november 2020)
Refinance Loan: $90k
Cash Invested: ($18,000)

This property is now completely fixed up and should yield very low maintenance expenses for the first couple of years. This property rents for $995 and PITI is $495. After accounting for property management ($50/mo is what i pay) and reserves ($100/mo) i estimate this to cashflow about $350/mo.

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

As a young professional with limited capital i knew value-add and refinance was the best way for me to continue do to deals without having to constantly save for capital. The snowball effect could not be more evident to me as I reflect on this deal just 18 months ago. I was hoping at the time to be able to do 2 or 3 deals every year and already I am on pace to do 6 this year with goals of double digit investment deals in 2022.

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

This deal was on the MLS (those were the days) and was right when COVID had hit so there wasnt a lot of competition.

$45k was the list price and was a price i was comfortable paying.

How did you finance this deal?

$50k was borrowed as a small business loan from LendingTree (not a mortgage). I would not recommend this as i paid 7 points (yes you read that correctly) and 9% interest. I wasn't familiar with hard money and just wanted to do a deal. 7 points only came out to $3500 because of how inexpensive this deal was but definitely could have been costly if used on other deals.

The rehab funds were pulled from a HELOC.

How did you add value to the deal?

Complete rehab. Replaced all lathe/plaster with drywall, removed 2 walls to open up the floorplan.

What was the outcome?

$120k appraised value with about $72k invested.

Took out a mortgage of $90k which paid everything back and left me a little cash in pocket.

PITI is $495/month and this rents for $995 (will probably get $1100 when re-rented later this year)

Lessons learned? Challenges?

The biggest lesson learned throughout this deal was gaining a better understanding of the construction of these old Cincinnati homes. Before this I had never dealt with lathe/plaster or knob and tube wiring. Overall though it couldnt have been a smoother first deal and i'm glad it was because as i've dove into more deals since I could see where a lack of motivation could come into play if you run into major issues on deal #1.

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

Varun Varma is the real estate agent who helped me find the deal. He is an extremely savvy investor himself and taught me some things along the way. He was the agent who encouraged me to get into the industry full-time as a licensed agent and how to build a pool of investor clients. Being an investor yourself before being an agent makes this much easier.

Bethany Ritchey at Fairway mortgage for all things residential mortgages. She is an absolute closer.

@Wes Johnson thank you sir. I accounted for 10% total for vacancy, capex and maintenance. I am going to bump this up to 20% and assess my offer value. Luckily I have some insider knowledge that this off market deal they are going to try and close by the end of the year due to tax reasons of their sales planned for 2020. Gonna try and leverage that and reassess.

Also, with this being an opportunity to reduce my living expense from $1200/month to a free living with small cashflow and taking my commute from 40 min down to 9 min. I guess I should’ve included some of these aspects in my original as this deal is very specific to my situation.