All Forum Posts by: Ling Tong

$1200 per year is pretty nice! My condo is 1077 sqft. My property tax was $1784 last year. That's about $150/mo. Plus the HOA is $280/mo.

Yes, from what i see, the property taxes are a lot higher on newer house built in 2010 and after.  The tax rate is often 2.5%-3% of the appraised value. For a typical 250k investment property, that's 6-7k property taxes per year. 

 I bought the property in 2022 March! Back at that time it was already a hot market, I was able to get this property with a full cash offer. Right now the estimated value is $150k, an 27% value increase in 2 years!

Investment Info:

Condo buy & hold investment.

Purchase price: $118,000
Cash invested: $118,000

This is the first property I bought. I have lived in this condo as a primary residence. When I move out of Wisconsin, I chose to rent it to a tenant, instead of selling the property. The condo is currently rented for $1200 a month. Cash flow is $720, and Cap Rate is 6.2%, and the home value is still growing.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $163,400
Cash invested: $25,000
Sale price: $240,000

A buy&flip project on a Single Family House

10K - Flooring, Trims and baseboards

8K - Interior Painting

3k - Updated water heater, and gas permit

2k - Other minor fix, ceiling fan, windows, light bulb, new fridge, and more

2k - Holding cost, HOA, and other related utility fees

Total cost of repair - $25k

I think you may add a bit 30%-50% more on the cost of Estimated Repairs. I checked the comparable near this property. My feeling is you may need more than 30k project budget to reach an 175k ARV.

For anyone interested, here is a 3D model I shoot when the remodeling is in progress:

https://my.matterport.com/show/?m=o9gNXGV7VZN

2505 11th St, Galena Park, TX 77547

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $106,000
Cash invested: $43,000

Fix & Flip, Sell and cash out

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

Over 60k profit Margin

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

Wholesaler - FCFS and placed offer at day 1 of listing

How did you finance this deal?

Backflip, Short Term Loan, 83% LTV. about $35k down

How did you add value to the deal?

Big Remodeling

What was the outcome?

The remodels is estimated to complete in 8 months. It was a medium-level remodeling. However in the middle of the project, we find major flaws in the A/C so we have to re-do the entire A/C Duct replacement. This extra scope of work make it over budget and start eating profits.

Lessons learned? Challenges?

1. Manage a big remodeling jobs is not an easy task, however you need persistance.
2. Don't underestimate the delay in a flip project. some accidents and events (e.g. Houston's Hurricane, Flooding) will stop a project for a long time.

3. Always try to double the project budget & time to prepare for the worst.

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

Backflip LLC is an awesome company, they provided a lot of helps in this remodeling.