All Forum Posts by: Jay V.

I've sort of backed into the properties here before they hit the MLS so I got them below market. One was a 3 BR foreclosure by the HOA that was 28K but I probably put another 15-20K in rehabbing. It had sat empty for a couple of years and needed almost everything mechanical, new paint, new flooring, all that stuff. I don't have definitive numbers for that unit, but I moved in, so it's my residence.

I moved out of my 35K two bedroom townhouse and I'm in the process of rehabbing it because it's amazing how worn everything looks after a few years of being lived in...but I'm not putting a whole lot of money into the remodel, more of a "freshening up" of the place. I'm planning on renting it for ~$750 for a ROI of 13.93% if I hold the remodel to under 5K...

Number 3 was a three bedroom townhouse I bought from a FSBO who was under the gun to get it sold and leave the country. The numbers probably will be comparable to my old condo. But I can't really tell you because my daughter is staying there while they fix up their home in Broken Arrow. Doh! It's not a problem, really, and it's nice having the grandkids here for the summer. :)

Number 4 was bought from an estate for a good 25K price. I heard about it from a neighbor who noticed the family clearing the place out. The deal I made was they didn't have to clean anything, move anything, or nothing like that. They could take what they wanted and leave the rest. My daughter and her husband finished cleaning up the place. It wasn't in bad shape, the owner was a non-smoker with no animals and had help come in to clean. So all I did for it was buy a nice used refrigerator and range, clean the carpets and ta da! I've got a good tenant in there for under market rent of $600.00. That makes it an ROI of 15.16%.

I'm just getting started with REI, and up to now, it's been easy peasy using cash. But I'm running out of handy cash so I suppose my next step will be to line up a line of credit, or something like that. But I guess my point is, I wouldn't dream of moving in on someone else's deal if you need a scout of sorts here in Tulsa I'd be happy to offer my (probably worthless) advice.

James, I just moved to Tulsa and am looking at getting in to real estate. I'm a little concerned about the economy and energy prices and what that'll do to housing prices in Tulsa, but I'm always on the lookout for a good deal. I'm in no rush, but have some $ I'd like to get invested. It might be worth us having a chat at some point.

0 Votes

Tulsa, Oklahoma

Erin,

Did you buy the rental? I live in Lockport and know the area very well. I'd be curious to know what you got.

Unfortunately, I don;t have first hand experience since I haven't bought my first rental yet, but I'm happy to help if I can. I do have several connections in local real estate.

Jason

0 Votes

btw - how'd you get a duplex in La Grange for $140k? Seems like a pretty good deal to me

0 Votes

A lot depends on your situation. Do you need to live in a single family home? will you be able to afford 20% on that home?

If it's feasible for you I'd consider a small multi-unit and live in 1 unit (either the one you already own or a new one). You can definitely get a 2-3 bedroom this way. You could also 1031 to it from your current 2 unit.

If you decide to sell send me a message. I like La Grange (and properties that cash flow).

0 Votes

Welcome!

I was just in GR 2 weeks ago for the first time. It really exceeded my expectations I was naïve and just expected a small town, but it's really a nice little city.

I'll be heading up there a few times a year for work - I started to consider if it makes sense for me to invest there since the housing is more affordable than my current area.

0 Votes

Originally posted by @Manch Hon:

I am surprised to see Chicago has such a strong showing. What are those neighborhoods like? Are they higher priced areas? How do they appreciate compared to other Chicago areas?

I'm not surprised at all. Chicago is basically the perfect mix for this type of study because it's highly desirable areas, densely populated and reasonably affordable (although definitely not cheap).

For instance, I would expect New York to be #1 in millennial renters, but prices are just too high for millenials to buy. Chicago is an amazing city with great jobs (probably #2 behind New York for that) and much more affordable.

Most of the rest of the country isn't densely populated enough with young professionals to register based on the criteria here. Chicago has neighborhoods full of condos where very few people (if any) over 40 live.

The "popular" places in Chicago are excellent for young professionals until they have kids, then it becomes tougher to justify staying there and most move to the suburbs or a quitter area of the city/

0 Votes

Originally posted by @Ravi Patel:

Scott,

Thanks a lot. This does help a lot. I know about the transfer fee, but wasn't sure on the tax part. Will have to look into it. We were thinking on getting first property under our names then transfer after 2/3 months to LLC so we can keep that 30 yr conventional loan option.

Going to see the difference in terms and interest in both options. If it's a half percent or something, it may be better to be protected under the LLC especially since we are renting it out.

Appreciate everyone's response!

This is a hot topic on here....

Just know that if you take out the loan in your personal names and deed it to the LLC the bank COULD call your loan. I don't know if they will or not, but they can.

Also, having a personal guarantee on a property in the LLC MIGHT pierce the corporate veil, rendering the LLC nearly useless. Again, that is a might because I don't know exactly what will happen or if it's worth it for the accuser if you ever get sued.

Bottom line, if this is really important to you, I'd get a lawyer's opinion.

0 Votes

Originally posted by @Wendell De Guzman:

Thanks @Patrick Britton !

@Jay V. , sorry for not responding sooner. The property appraised for $300K and that's how my buyer got a loan. It was the lender's appraiser - not mine nor the buyer so it's a third party appraiser doing the analysis.

That's great.....it's a very favorable appraisal. If that house is worth $300k, then I'd be VERY happy at what that appraiser would put the value of my home at.

@Wendell De Guzman I just re-read my post. It came off a little bad. I still don't think that house will sell for $300k, but I apologize for the tone.

Keep the posts coming, us newbies learn a lot from your posts and who knows, I may buy one of your properties soon :)

0 Votes

@John Hamilton

I'm actually looking a little south of the area that you mentioned. I'm mostly interested in Naperville to Lockport. From a buy and hold standpoint I think Lockport, Lisle, Woodridge and maybe Crest Hill are my top focus areas.

I actually haven't done any deals. Just deciding to get in the game because my bank account earning .001% isn't doing much for me these days and I have some $ I'd like to see grow.

0 Votes

My thoughts:

Your financing costs feel low

Are there other holding costs - taxes, insurance, utilities

Permit costs? (probably included in the construction budget)

Any realtor fees?

Closing costs?

Overall no one can really give a strong opinion without knowing the market and if your ARV and construction estimates are accurate. If I assume everything you state is accurate, it seems like a very good deal. Given the size of the deal anything you may be missing that I pointed out above is pretty small in comparison, but I'd still be as accurate as possible.

1 Vote

All Forum Posts by: Jay V.

Jay V. has started 2 posts and replied 30 times.

Post: Tulsa job market, and areas to stay out of

Post: Property management

Post: Newbie from Oak Brook, IL

Post: Newbie from Oak Brook, IL

Post: Hello from Grand Rapids, Michigan (profile pic coming!)

Post: Where Do College-Educated Millennials Live?

Post: Buy my first property on LLC or Personal ? Loan issues?

Post: Real Life of a Real Estate Investor

Post: New investor from Chicago

Post: High End SF Bay Area Flip - Risk-Return Opinions