All Forum Posts by: Mario Mormile
Mario Mormile has started 33 posts and replied 165 times.
Post: Noob from Cleveland, OH
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
@ Joseph Taylor, welcome to BP!
Post: Looking for a single-family or multi family property for sale in Geauga County
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
Greetings!
I am looking to purchase a single-family home or a multi family (duplex or triplex) in Geauga County, Ohio. I would prefer something distressed but turnkey is okay. I am looking in the price range of $20,000-$50,000. Thank you!
Post: Meet-up in Lima, OH. Ben Leybovich & Brandon Turner in Attendance
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
@Ben Leybovich,
I will be traveling down from semi-rural Burton Township! My girlfriend will be joining me as well. We both are excited about it! Looking forward to a great time with you all!
Mario
Post: Success through BP: 3,000th Post: 4 years, a Summit, $1MM+ in RE, 1 wholesale probate deal, 8 rehabs, 1 master lease, 50 Airbnb guests, & 100 tenant headaches later..
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
@J.Martin, what an inspiring testimony! Getting active: it is mentioned in every podcast and you're right- it is essential! Thank you for sharing and I wish you continued success!
Post: Bathroom, Circa 1964 - Poop Brown - suggestions?
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
I would keep it as is. What do other rentals in the area look like?
Post: how to clean very dirty grout
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
I have to do a bathroom this upcoming week and the grout is pretty gross. I believe the product is "Custom Building Products Polyblend #11 Snow White 8 oz. Grout Renew Colorant" a $12 Home Depot fix. Good luck!
Post: New Guy On The Block from Tacoma, Washington
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
Welcome! The webinars are another powerful and indispensable tool you can utilize. That's great that you're getting back into REI! Enjoy!
Post: Why does this deal work/ not work?
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
Originally posted by @Brent Coombs:
Originally posted by @Jason Allen Taylor:
Your numbers do not account for the cost of money. You have $82500 allocated in cost of purchase and repairs, but no accounting of how much that money will cost you In points, interest, etc.
Could you be a bit more specific regarding your private funding?
Agreed! Mario, how can you come up with a cash-on-cash return if you are borrowing the lot!? If you are just going to wholesale or flip it, your deal-analysis needs to make sense to your end buyer (so should include what the numbers look like for them, INCLUDING say, 70% borrowings - THEN whatever cash-on-cash numbers result, should make sense)! Cheers...
Thanks for the advice Brent. I have to make the necessary adjustments on the analysis calc. I wasn't quite sure how to plug all the numbers in because some of the cash was mine. But I get it now. I appreciate the response!
Post: Why does this deal work/ not work?
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
Originally posted by @Lee L.:
@Mario
How do you arrive at ARV? Projected rents? Comps? What are the current rents? Are you spending the $30K on fixing up the unit to rent so you can rent it for $1350? Or on deferred maintenance, or a bit of both?
It sounds like you are projecting that $30K in repairs will basically double the value of the home from $65K -> $125K. I'm a little worried you might be underestimating the repair bill especially if it's a really old home, and it's a hoarder house. You can spend $30K on one unit, easy.
Hi Lee Liu-
Thanks for your feedback. The rents in that area generally go for : 650-800 one bed one bath; 900-1200 three bed one bath. I have used extremely conservative numbers that are "pre-rehab" units. Once the 30k is spent, the combined revenue from both units will be between 1800-1950.
The home was originally listed at 85, dropped on Monday to 75. Duplexes go for around 135- 150 ( not always renovated) in this area and comps are a bit higher than my figures. The ARV is a bit conservative. But I compared it with what the comps in the area sold for.
You're right- the cost of cleaning out a hoarder house can be steep! Fortunately, I know a few contractors who work at a fair rate. I will be participating hands-on in that work and the rehab as well.
Post: Why does this deal work/ not work?
- Investor/ Real Estate Agent
- Burton, OH
- Posts 167
- Votes 53
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