All Forum Posts by: Nick S.

hi, if you're still looking for a general contractor, let me know. my dad is a gc servicing the nw suburbs specifically based out of algonquin, so if requesting chicago proper, then probably will not work. send me a pm, thanks!

hi, if you're still looking for a general contractor, let me know. my dad is a gc servicing the nw suburbs specifically based out of algonquin. send me a pm, thanks!

i'm really hungry to buy my 1st property (live and flip) by feb 2020 as a goal. i was on a roll earlier this year, but just got burned out checking dozens of houses in person every weekend. would love to know if i'm reaching here based on the details of the deal. it misses all the guidelines (aka 1% rule, 70% purchase) so just trying to have people keep me honest.

goal is to live and flip. back up exit is to rent it out. this would be my 1st property so huge learning step for me

listed price: 225k

purchase price: 207k

no major updates except some minor fixing/upgrading that would cost about 10k (dad's the general contractor)

based on recent comps (provided by agent): arv around 235k maybe 240-245k

rent for similar: $1800-1900 (pushing it)

i'd live here for at least a year, put down 10%

the really big positive (i think) is that the property is in a desirable school district

i can try to provide as much details as possible.

thanks.

@Jonathan Holmes thanks for the reply. when i look at comps through redfin and download the comps with excel, i tend to look at the last year, but there's a way to look at the comps for the last 6 months.

@Mike Stohler thanks for the reply! i'm getting my arv based on similar finished properties based on comps i found on zillow and redfin. figured with the repairs/upgrades, the arv would be $270k. current listed price is $235k and overestimating on $35k in repairs, which will be made over the course of the year while i live there.

the real estate agent gave me some comps to compare, but it was similar to the comps i pulled from redfin.

having a difficult time using both the brrrr and fix and flip calculator because i intend to live in the property for 1 year so not a rehab. these calculators seem to assume i won't live in the property. based on the factors below, i'm hoping someone can poke holes.

arv=270k

repair=my father who is a general contractor is overestimating at 35k (it's definitely livable, but there's opportunity to upgrade/update such as the roof, floors, cabinets). i'd live there for a year and plan to either flip or rent after the year.

annual expected property tax=$7.5k

listed price is around $235k ($/sq ft is below comp average)

comps within the past year for similar properties around $260-$280k

preferred profit (not too sure about this) but $20k is a target...i guess.

estimated rental based on recent is $1.8-1.85k/month

i was thinking about offering $210k max, but the calculators recommended an estimated purchase offer between $160-$175k, which seems extremely low given the livable condition.
what am i calculating wrong here? 

would appreciate any feedback. thanks.

@Patrick Daniel thanks for the encouragement. i think the competition is increasing because as we approach the summer time, it'll be difficult for me to be competitive. i think i'll be more aggressive come sept-oct. that said, i know i can't use the traditional 70% rule since i'm not going full rehab and rather going the route of livable+small rehab.

after hearing a few podcast episodes of bigger podcast, the double close made more sense and jotted some notes. the wholesaler/buyer's list route will require more research on my end especially as it relates to those with a conventional loan. great point to bring it up!

@Kuba F. good stuff, took me awhile to compare to your screenshots because redfin made it slightly more difficult to do that, but after a few clicks and digging, i found it. thanks!

edit: vote for you!

@Patrick Daniel i actually did get one of those market analysis and it was quite impressive but honestly found it useless. not enough to warrant my time to go through. basically i found a property i liked, received the market analysis of comps in the same area with identical features and all that stuff and basically was 50+ pages. i already knew going in where i had to be at, but it was interesting to see that comprehensive report.

....not familiar with a buyer's list but will do some research on that. i think with me being new and having specific criteria (e.g., no complete rehab), thought mls was the best route. interesting. 1 out of every 95-100 offers...interesting stat. 2 rejected offers on the same property, so a long way to go haha. it's very tiring to look at so many properties only to find maybe 1 that falls in your criteria and then only to get rejected. the waterfall of looking at properties to getting an offer accepted is demotivating when i take a step back and look at that conversion rate (i'm a digital marketer full time so i look at it from that perspective). thanks for the responses!

@Kuba F. correct, i copy and paste the property into zillow, scroll down to the "neighborhood" drop down, and zoom in to see the zestimates of the surrounding houses. i love this feature. i don't see the same in redfin.  i do notice though that redfin has identical if not the exact same info as the mls listing, which zillow doesn't seem to have. great info, but do lmk about how to find similar prices on redfin like i do on zillow. thanks