All Forum Posts by: Kedian Jimenez

Investment Info:

Single-family residence fix & flip investment in Middletown.

Purchase price: $55,000
Cash invested: $70,000
Sale price: $173,000

This was a medium rehab where the roof needed to be partially repaired, extra 1/2 bathroom added, cosmetics, & flooring was done. The rehab took an easy 2 months. We had a buyer line up from February. The project took several months to close because of FHA compliance and financing.
Buy: $55k
Rehab: $70k
Sold: $173k
DOM: Off Market

Find more info on the the deals in the following link:
http://kdnestate.com/#rehabs

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

We had another major project going on twice the size of this one and we felt we can finish it in parallel.

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

We got this through our Realtor.

How did you finance this deal?

Hard & Private Lenders

How did you add value to the deal?

We rehabbed the home into a livable place.

What was the outcome?

The outcome was a very pleasant home for some first-time home owners as well as some profits for the business.

Lessons learned? Challenges?

Withold more capital from the fundraising/profits to accommodate unforeseen issues like extra work, buyer's finance and taxes.

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

Yes we worked with AnnaMaria O'Brien

Investment Info:

Single-family residence fix & flip investment in Middletown.

Purchase price: $55,000
Cash invested: $70,000
Sale price: $173,000

This was a medium rehab where the roof needed to be partially repaired, extra 1/2 bathroom added, cosmetics, & flooring was done. The rehab took an easy 2 months. We had a buyer line up from February. The project took several months to close because of FHA compliance and financing. The deal was profitable enough that the extra time taken was built into the deal's P&L.

Buy: $55k
Rehab: $70k
Sold: $173k
DOM: Off Market

Find more info on the the deals in the following link:
http://kdnestate.com/#rehabs

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

We had another major project going on twice the size of this one and we felt we can finish it in parallel.

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

We got this through our Realtor.

How did you finance this deal?

Hard & Private Lenders

How did you add value to the deal?

We rehabbed the home into a livable place.

What was the outcome?

The outcome was a very pleasant home for some first-time home owners as well as some profits for the business.

Lessons learned? Challenges?

Withold more capital from the fundraising/profits to accommodate unforeseen issues like extra work, buyer's finance and taxes.

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

Yes we worked with AnnaMaria O'Brien

Hey everyone!

I got a scenario and decision to make. I’m asking for feedback here!

I got a property upstate that we are flipping. The value is estimated around $310k but my business partner wants to sell low at $230k to get out of it. Which will still mean we owe money.

I want to refinance it and short term rent it (Airbnb).

Long story short, The flip took longer than expected and now we had a buyer that backed out last minute. Finances have been tied up into this property and My biz partner wants to sell at a loss. The hard money Loan is due and we owe some people.

The potential for the property is about $4k/mo low and $8k/mo high in short term. What we don’t have is cash to handle the oncoming issues and furnishing since it’s all tied up. Now this is based on the market but it’s the first property I manage outside of the city.

What would you do in this situation:

1. Sell low and start with a clean slate?

2. refi and turn the asset into income producing?

Area link: https://www.airbnb.com/s/634-Eatontown-Road--Port-Jervis--NY--USA/homes?refinement_paths%5B%5D=%2Fhomes&query=634%20Eatontown%20Road%2C%20Port%20Jervis%2C%20NY%2C%20USA&place_id=ChIJY7rQFXI2w4kRw6xdUVJly9Y&adults=5&room_types%5B%5D=Entire%20home%2Fapt&min_bathrooms=2&min_beds=4&allow_override%5B%5D=&s_tag=HA4-PoWn

Hey there bigger pockets!

Hope all is well! Just want to come on here and air out some of the challenges my team is facing and wondering what everyone else did when they ran into something like this. We currently have an FHA buyer in place for our second deal however it entails having to possible extend a storage room thats not livable currently. What makes a home FHA compliant and would we really need to extend? (Details below).

In order for us to start the rehab work on this second home we have to finish up a current property which still requires another $15k work to finish off but we keep running into problems with the contractor deposit and  since they originally wanted $3k down and $8k on completion but now they keep coming back that they want the $3k down and then another $3k the next week when this wasn't apart of the original deal. We specifically have it as the rest is due on completion because of our reimbursement schedule with the hard money lender. They reimburse us the money with the money in escrow that covers the rehab. Do I get another contractor in or what would you do?

We are currently working on two projects in Orange county, NY (Middletown and Port Jervis/greenville). We have the following numbers on the deals:

Property #1

ARV: $320k - $340k

Purchase price: $130k

Repair: $85k

Hard money lender loan: $178,750 - 13.5% interest 4 points

Although this project is a great deal, the problem we ran into was not having enough capital to get the rehab done in order and also having to hire and fire contractors along with letting a family contractor take over the job but putting too much into an extension of a home. This project has been delayed more than once which has cost us a lot of holding costs and an extension on current loan for an additional 9 months. We have tapped out in term of finance to finish off the rest of whats left but we need the time to build up capital from our own income which still costs more.

Property # 2

ARV: $160k-179,900

Purchase price: $55k

Repair: $55k

Hard money lender loan: $72k - 13% interest 2 points

We have a buyer lined up to buy at $175k with an FHA loan. They want an extra room by extending the crossover into a livable bedroom space. This alone will cost $20k and yet we dont know i FHA regulation will be fine with the room as is since the doorway is actually much higher than the storage space entry (crossover). We mentioned that we have to think about the plans for the situation, to the buyer. What would you guys do with an FHA buyer and how would you handle the extra rehab for and extended room when the current loan isn't covering that?

Yes you have some of he oldest homes and the highest taxes in Jersey. Be wary. But it can be worthwhile if done right. Jersey city received a tax cut so new businesses will definitely move in and it's across the water from NY.

Good for HANDY home owner that wants a good deal and also Good investment for flip opportunity or Buy and Hold.

Repair: 25k

ARV/CMA: $179,900k

Asking: 95K

Avg Rents in Area: 1600

Ask for more details and pictures

Desc:

It is a great Corner property next to a police precinct. Property sits on somewhat of a hill elevated above street level which allows for quick drain and wonderful steps that lead into the home.

Repairs:

Home needs some cosmetic work and landscaping of the front, driveway, and fence.The floors and walls would need a redo. Structure and bones of the property are in great condition.

Pictures (before clean out. updated pictures soon):

https://www.dropbox.com/sh/icnkgv8hq6cf1f7/AABkZ8v...

CASH BUYERS Cash offer takes priority on offers and then everything else. Just contact us via phone number.

We do NOT want a bidding war so first to produce a written signed contract gets the home.

Please no brokers we are only looking for solid offers for AS-IS

Hey all, It's exciting to say I'm closing on the first property that I'll be renovating, come next week! Typically we do wholesales but for the insight and experience we chose to move on this property ourselves and it's a monster deal. Got it at about 50% ARV. Just keep hustling. I'm shopping around for some insurance in Port Jervis New York and I want to get the best rates. Thus, for a 4br 2ba home with 2200 sqft I'm getting flood and hazard around $300/mo so I would like to know if you guys know any other really good companies and can refer me to them so I can shop some quotes. If you guys want any more info on the deal to maybe give you ideas for your own investing or to come in and help, I'd be happy to provide some of that :-D . Cheers!

Hey all, It's exciting to say I'm closing on the first property that I'll be renovating, come next week! Typically we do wholesales but for the insight and experience we chose to move on this property ourselves and it's a monster deal. Got it at about 50% ARV. Just keep hustling. I'm shopping around for some insurance and I want to get the best rates. Thus for for a 4br 2ba home with 2200 sqft I'm getting flood and hazard around $300/mo so I would like to know if you guys know any other really good companies and can refer me to them so I can shop some quotes. If you guys want any more info on the deal to maybe give you ideas for your own investing or to come in and help, I'd be happy to provide some of that :-D . Cheers!

@Natae Marrow meet @Ceasar Rosas . Join us at the next REI

Gvnr Cuomo actually signed it in and actually contrary to what is said here it seems, lots of people wanted AirBnB in place. Most people especially millennial's (I know many Y,z and baby boomers that thought the same) endorse and support AirBnB. I would say its mostly used to help pay rent. This is in my experience. Now Cuomo has forced their hand and those people are left in the cold having to forfeit the home anyways because of the loss of ability to do short term rentals.

Cuomos argument against airbnb actually contradicts what happened. He said it's to stop the illegal hostel/hotel activities of local NYC apartments and to stabilize the rents (prevent them from rising). Yet those very same people he was trying to save are already out-priced by the market without the extra income and illegal activity is a minority compared to the hosts who were just using it as a supplementary income. so now they are moving out anyways and higher market value is sold to the next, effectively putting up the value. So an outright ban did more bad than good, and what sucks is that now that AirBnB is focused on going public, they dropped all suits agains the major cities. Yup I think this was an extreme example and one thats going to bite back harder than before. Manipulation by Government can be a tricky thing.