All Forum Posts by: Nik S.

Hi all! I have been flipping for a few years now and have embarked on a larger flip w/ an in ground pool. The home requires EVERYTHING. New roof, siding, soffit, gutters/downspouts, 2 furnaces, 2 HWT, 2 A/C, full kitchen, bathrooms, flooring AND septic etc. The list goes on and on..and on :-). Home sits on 3 acre lot and will be quite stunning once finished. This home comes with a pool that I was unable to fully examine as its winter here in Ohio. Home was built in 1987 so I am assuming the pool foundation SHOULD be okay. There are no pool mechanics so that will need replaced as well as the liner. I have an estimated budget of $9-10k for getting the pool up to par. 

My main concern is if I should refurbish the pool or not. In NE Ohio, pools are less desired as our weather doesn't permit full usage of such amenity. IF I filled in the pool, I potentially think that the home will attract more buyers as more don't desire a pool. However this home sits on 3 acres, has privacy and has a great fenced in backyard that encompasses the pool (and a pool shed that's getting redone as well). The pool furbishing is in my budget however I am looking for the SALE factor.  

Any suggestions fellow BP'ers?

@Marco John

Keep in mind, depending on your market 15% is minimum (for me) Average range is 10-20%+ however the higher returns are getting harder to obtain due to higher purchase prices / low inventory. As another BP member stated, watch your holding costs and you have to see how long it will take you. Call the utility dept (water gas etc) to see if any unpaid balances are owed on the property. Check your area comps. List goes on :-)

Marco John Generally you try and strive for 15% of ARV (after repair value). So $175k x .15 = $26k (minimal profit expectation). Your cost of $115k + $20k = $135k total cost. $175k sale price - 8% (commissions/prorations/fees) = $161k - $135k cost = $26k aka 15% of ARV. It’s a winner in my books assuming all costs / numbers are relevant.

Todd Keith I have double that many units in Akron and I can tell you that it’s over priced. Overall expenses will be much higher considering management fee (6-10% of gross income), your insurance is way to low ($2k annual isn’t real, perhaps he has an ACV policy to save money, HIGE RISK) and laundry income is crazy high. Also assuming you will be hands off, the maintenance work that gets subbed / supplies eats up a TON of cash flow😩 I had a 12 Unit catch on fire this year in Akron and luckily I had an A+ RC Insurance policy and they took care of everything without any hassle, total claim was $500k. Your policy should be around $4-5k. Just assume higher for all the numbers and run numbers conservatively. My annual taxes went up $8000 in one year due to the school board ATTY who is ruthless. Purchase price dictates new valuation and taxes WILL go up if the current valuation is lower than purchase price.

With everything in life, a healthy balance is key. I find myself getting bored when I don’t have enough projects or things in action. Then sometimes slightly overwhelmed when things are super busy, it’s a catch 22. Stay focused on your personal goals and remember that life is too short to pass up on family, friends and fun opportunities. I would like to say that I am a follower of maintaining a healthy balance but I’m guilty that I dedicate ALL my spare time to finding more deals every day. Hopefully soon I’ll take action in “relaxing” and start enjoying the simple things in life !

The average millionaire has several streams of income. To me, money creates FREEDOM. Other than that, it’s quite evil as some of us may know. The more success you gain, the more you desire (at least for me). The desire to strive for more should make a sophisticated investor/entrepreneur make some “sacrifices”. The sacrifices which may include spending less even though there is more $ and simply tucking that cash away for more / larger investments. Money attracts money and it certainly takes money to make money in a majority of cases. Self building to me is the most passionate way to grow on paper as well as inside. Sunday Scaries? Not me, Monday is one day closer to keep turning dollars and keep the progression rolling. Life is all about finding about what your passionate about and taking action upon that passion. All of us on here are all in to RE and or getting their feet wet. Once you get a taste of it, you will want more. RE creates freedom, maybe not 100% but close enough for most ! No ER room for me :-)

Rodney Marcantel nicely done, looks great! What paint color did you use for the walls?

@Wayne Brooks 

I just called my agent and they do offer it so I will explore their options. Thanks for the knowledge, truly appreciate it. 

@Wayne Brooks

Ok I will research that. For the past 2 years I have been getting 6 month policies for flips and paying pretty high premiums. Didn't have a choice apparently. Im on the hunt now for builders risk insurance but do you know if most insurance companies offer that or are they speciality insurance companies I should seek? Thanks!

Hi everyone! I am in the market for a new insurance agency that insures "vacant homes" for flips. Should I be telling them they are vacant or "rental units"?  Any suggestions / ideas / references?