All Forum Posts by: Kevin Olson

Bigger Pockets,

I will get right into it. I have found a nice 3/2 in Ocala Fl that is being listed for $135 a sq ft. The property is 1855 sq ft and is currently being sold AS IS. I have gotten an estimate on the cost of repairs which will be close to 15,000. I am working with a local agent but she is not 100% sure where the ARV will be. I have done my research looking at Comps, area, layout, etc. but I am still not sure if this will work. My goal is to remodel the house and list it for roughly $170 - $175 sq ft. I have taken a look at the Comps in the area and 2 weeks ago a similar house sold for $189 sq ft. When I say similar I mean, layout, Sq ft, etc. Of course, this house is much nicer than the one I am purchasing but once I am done with the remodel it will be very close to the same quality. Can you think of anything else I can look into to help me decide if I should purchase the property? The lot size is also comparable. We pulled a few comps with fewer sq ft that have sold in the last 90 days and the average is still between 170 - 189. But when I ask my realtor where she thinks she can sell this house for, she does not give me an answer. She says the market is starting to go down. This community has helped me in the past and I hope you can again. Any advice or counsel would be much appreciated. I look forward to your reply.

 Hold the property. I earn over 200,000 from my primary Job. One of the main reasons I am looking into short and long term rentals is the deprecation. I hate paying taxes and I am looking to reduce my taxable income. 

 I would not be interested in flipping it. It's a short term rental with 75,000 a year in income. I don't see how flipping makes any sense. Thank you for your reply though. 

 60,000 - 65,000

I am looking for a qualified hard-money lender in the Orlando, Ocala, Gainesville, and Jacksonville areas. I was told by the listing agent of an Airbnb I am interested in I should consider using a hard money loan for the entire purchase price. And then 12 months later refinance the loan. This is a two-part question. Does anyone know of a reputable hard-money lender in the area and is it a good idea to use a hard money loan for the purchase price of 525,000? The reason is I do not have enough down payment for the 25% down and my credit score is only a 700 so I don't meet the minimum requirements. The property I am considering is an investment and i will not be living in it. Any advice or thoughts on this would be much appreciated. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $243,000
Cash invested: $20,000
Sale price: $349,999

I purchased this house in 2021 with the plans to remodel and sell for a profit. I did all the work my self which lead me to holding the property longer than I anticipated. I spent around 20,000 over the year to remodel the kitchen, bathrooms, all new flooring, landscaping, etc. We close on 7/6 and my profit is 76,000. I will be using the profits to purchase a short term investment property, most likely an Airbnb.

My goal is within 5 years to have 50 doors and retire from my main job.

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

To acquire a significant amount of cash that I can use to purchase a long/short term rental

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

I worked with a local Agent who I became friends with when I helped her and her family purchase a vehicle. I negotiated the closing costs, and the sale price, but the house was listed at the price.

How did you finance this deal?

A 30 year fixed rate with 3.5 % down.

How did you add value to the deal?

I spent close to 20,000 on this property and I saved even more doing all the work myself. From the remodeled Kitchen, to the bathrooms, to the 1985 Sq Ft of Luxury Vinyl Floors, and New paint this completely transformed the property.

What was the outcome?

I had to hold onto the property longer than I wanted to but I made close to 80,000 on this flip. I negotiated during the sale that the buyer pay for my closing costs.

Lessons learned? Challenges?

I would have hired contractors to do some of the work to speed up the remodel time.

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

I worked with a local agent who has become a close friend. She sees and understands my vision for the future and what I hope to achieve. I believe in building a team around you to help you succeed.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $243,000
Cash invested: $20,000
Sale price: $349,999

I purchased this house in 2021 with the plans to remodel and sell for a profit. I did all the work my self which lead me to holding the property longer than I anticipated. I spent around 20,000 over the year to remodel the kitchen, bathrooms, all new flooring, landscaping, etc. We close on 7/6 and my profit is 76,000. I will be using the profits to purchase a short term investment property, most likely an Airbnb.

My goal is within 5 years to have 50 doors with a mix of short and long term rentals. I believe in networking and I look forward to building relationships along the way.

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

To acquire a significant amount of cash that I can use to purchase a long/short term rental

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

I worked with a local Agent who I became friends with when I helped her and her family purchase a vehicle. I negotiated the closing costs, and the sale price, but the house was listed at the price.

How did you finance this deal?

A 30 year fixed rate with 3.5 % down.

How did you add value to the deal?

I spent close to 20,000 on this property and I saved even more doing all the work myself. From the remodeled Kitchen, to the bathrooms, to the 1985 Sq Ft of Luxury Vinyl Floors, and New paint this completely transformed the property.

What was the outcome?

I had to hold onto the property longer than I wanted to but I made close to 80,000 on this flip. I negotiated during the sale that the buyer pay for my closing costs.

Lessons learned? Challenges?

I would have hired contractors to do some of the work to speed up the remodel time.

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

I worked with a local agent who has become a close friend. She sees and understands my vision for the future and what I hope to achieve. I believe in building a team around you to help you succeed.

 Can I contact you about the 15% down option you mentioned?

 I’m not an experienced investor I’ve done 1 real estate deal which was a remodel that I made a very good profit on. I earn 200,000 a year from my primary job and have a credit score 690-700.