All Forum Posts by: Rick Turman

@Brandon Hall, Thanks for your input!  How can I find out the Neighborhood is C/D class?  I checked the County Auditor and found the Grade to be C+ and Condition to be A.  Is this what you are referring to?  And what does this mean?  I absolutely agree with you as to why I cannot get 525 for rent on each of these units.  Perhaps even more once each are renovated.  

Is there a way to get those units on a separate meter for everything for utilities? 

@Aaron Montague, I did not ask about trash.  I agree with those high ticket amounts needing to be fixed.  If 80K should be acquisition cost currently, I may be able to squeeze by with a 70-75K offer and Mortgage to include for all of these expenditures.  Almost a Flip/Rehab/Rental while tenants are in place.  I do not see there being an issue in cost of rent if the tenants are getting upgrades.

The area is near down town in our city which Marathon Corporate Headquarters is here in the city.  Everyone works at Marathon an it is a very Blue Collar city.  

I just me stick with this one for a little while longer after I get all my details.  I will look into Schedule E, trash, and account for vacancies.  What will sweeten the deal is if the owner is willing to come down to about 70 or start negotiations from there to accommodate for rehab costs.

Thanks everyone for your responses, and looking forward to discussing this more!

-Rick

@Ashley St. Gelais, You can find these Here: https://www.biggerpockets.com/real-estate-investing as it is a free PDF provided by BP. 

I was recently notified of a 4 Plex from my agent and the asking price is 105K. It is a 1/1 with full occupancy.  3/4 units are month to month as they are out of contract where another new tenant just signed on for a 12 month lease.  Owner pays for Gas, Electric and Water.

Monthly Income: $1,630
Expenses: ?
Utilities:  ?
Mortgage: around $430 for a 15 year or 219 for 30 year
Property Tax: $226
Repairs Exterior/Interior:  Not sure but needs it
Insurance: ? Part of LLC so Owner doesn't know

Owner is willing to deal as they are moving out of the state and want to slow down and pass off the property to someone else after 25 years.  Just by assessing what has been provided, I do not believe this will bring a positive amount of cash flow.  I applied the 2% rule to obtain a valid rent amount.  Most rent in this area of 1/1 is going as low as 330-500. 1 tenant is currently paying 525 the rest are in the 300's.  50% rule shows Cash Flow to be at ~$150, however that is just a guess as I  cannot speak for those that are in question above.  

I believe it is time to move onto the next property to evaluate.  Thoughts?  Thanks everyone!

All the best,

-Rick

Good Morning,

I am looking into pulling the trigger on my first deal for a flip in my area and needed to clear up a few things.

1.) How many of you walk the property with your contractor prior to making the deal?
-For those of you who don't, do you make an offer contingent to the inspection?

2.) Since we do not own or rent, we are being provided a HELOC through a family member to offer a cash purchase, however Are we able to have the owner of the HELOC transfer the full amount to us in a check? Or would they be the owner of the property? Could I co-sign on the HELOC and work the deal that way?

Thanks guys, and have a great day!

All the best,

Rick

Is it a bad thing to be addicted to this site? Over the past few days, I have done nothing but Post, Read, Research, Compile, And listen to a ton of podcasts. I am just about finished with "The Ultimate Beginners Guide to REI," and once completed, I may knock out one more podcast before starting J. Scott's books.

I need to go over a few key terms and reference links in TUBG2REI and compile a cheat sheet to toss in my binder as well.  Also I need to learn the lingo so I can speak intelligently with other investors, agents, and lenders.  

I have also reached out to a few more flippers in my area.  I keep checking my email thinking they may have responded as I have never been this excited before in my life other than learning how to ride a bike, and my first born child!  Oh ya, my Wedding of course! Love ya hun!  Thanks BP Family, and have a great weekend ahead!  More to come!

-Rick

Thanks for the warm welcoming @Rachelle Rodavia, @James Wise, @Nicholas Varner, and @Sterling White!  

Actually, a lot has happened within the last 24 hours.  Ok more like 32 hours.  Here's what I have done:

1.) Listened to 5 episodes of the BP Podcasts (Got my feet wet on what was relevant)
2.) Obtained both of J. Scott;s books
3.) Printed out all pertinent documents from J. Scott and bound them into a 3-ringed binder (will use this as a guide for me (Very particular and need to stay organized)
4.) Obtained The Ultimate Beginners Guide to REI
5.) Reached out to an agent in my area who's clients are also flipping
6.) Added myself to the MPLS notifications on when my criteria for homes are met
7.) Contacted a few local contractors I've worked with to develop my team (Search continues)
8.) Reached out to a fellow Flipper in the area who is currently having success at it

To do tomorrow and through the weekend:

1.) Research Joining REIN in Toledo, OH
2.) Visit Lowe's at 6-7AM and scope out more contractors (early risers are running circles around others)
3.) More reading of the 3 books mentioned above and research more.
4.) Read/Live/Learn the documents provided by J. Scott in my binder

If anyone can think of any others to add to any of these lists, please feel free as I am a sponge soaking up the treasure trove of information this site has to offer.  Thanks everyone, and if I do not hear from you, have a wonderful weekend ahead!

-Rick

Hey guys. This is a shot in the dark however, it never hurts to ask. I am currently a children's book author, a 9 to 5 er, and would love to get into Real Estate Investing. There is something about Flipping homes and Rehab that makes me itch for more. It's R&R for me and I am looking for some guided help.

I wanted to reach out to the BP family as you may already know what steps to take to get started. I'd like to know if you would be willing to help me get started? I am looking for any information you may have like books or websites, or maybe even seminars you'd recommend? How did you get started? Or did you just start? I'd hate to re-invent the wheel if someone as yourself has already been involved and know what works and what doesn't. If you have a moment, please let me know if you would be willing to share the knowledge so that I could also start a new chapter in Real Estate Investment. Thanks BP family, and hope to hear from you soon. 

P.S. I am working with an agent at Keller Williams to help me locate an agent out near me in Ohio that is up to speed with flipping and is in it to help, not for the money.  Has anyone else used this group to seek agents?  If so, how was the experience?  Thanks!

All the best,

-Rick