All Forum Posts by: Scott Steffek

Ashourrina, 

PM me and I'll give you a name of an excellent contractor. 

17603 Burnham Avenue – Lansing, Illinois 60438

Don't pass this one up. It will NOT last! 

This is an outstanding flip or a good rental.   Please contact me for the ROI worksheet.

Property Specs & Details:

All Brick 2 story - 3 bedrooms – We’re adding a master bedroom - 1 Bath - 2 car detached garage

*837 square feet – *House is listed as 837, but it is actually about 1200 square feet. The 1200 includes 2nd story.

Full Basement with nice storage cabinets -  Corner lot - Cape Cod - Taxes: $2076.00

Purchase Price: $68,000.00

Rehab Costs = $20,000.00

Total Price = $88,000.00

After Repair Value: $125,000.00

ROI% = 29.87%*

• The ROI percent INCLUDES your realtor costs to flip after rehab is completed and holding costs that include: insurance, electric, gas, water, closing costs and taxes. Closing costs based on closing with our title company.

Rehab Cost = $20,000.00

As always, our crew will rehab the home for you, if you need those services. We're ready to begin the rehab. You’re also welcome to bring in your own contractor.

Here’s what we’ll be adding when we rehab it: 

• All new carpeting throughout the home
• New appliances
• New kitchen cabinets
• New counter top
• New bathroom vanity and medicine cabinet
• New back door and screen door
• New bedroom doors
• New “upper end” light fixtures throughout the house
• Entire house will be painted
• Take down awnings
• New Landscaping in front of house.
• New high end kitchen faucet
• New back splash in kitchen
• New bathroom faucet and bathtub shower head and fixtures
• Other small “miscellaneous” items like: New electrical outlet plates, new smoke detectors and new light switches.

Pictures:  https://www.dropbox.com/sh/c32djmhk2tjdbhd/AAC-PvM...

Terms of sale:

The highest Cash Offer will take this deal. Please do your own due diligence before contacting us. Send in Proof of Funds along with your offer. Please, no lenders on this deal.

We have equitable interest in the property.

• The info listed above is to the best of our knowledge.
• Buyer pays 100% of closing costs which include: title company fees and your attorney fees
• Buyer will receive taxes prorated to 100 percent and free and clear title
• Please do all your inspections and due diligence up front before contacting
• The first investor with a signed contract and $1500.00 earnest money gets the deal
• This is an IRA Qualified investment

CONTACT DETAILS:

Scott Steffek

Invest in Rehabs, LLC.

Phone: 219-308-0162

Email: [email protected]

Nicky,

I wholesale and don't have a license. However, I have 2 realtors who are more than willing to look up sold comps for me, because of the business I give them. But sometimes it gets frustrating, because I have to wait to get the comps. I can definitely see the advantage of getting a license. I might be missing the boat on this one. But there's restrictions put on realtors and that's the main reason I've stayed away from it.  Keep in mind that realtors might be hesitant to work with you, if all you do is ask for sold comps and they you don't throw any business their way. Let's face it, we're all in this to make money. I don't know anyone who works for free! Best of luck to you. 

Joe,

Ratios are nice to look at and that's about it.  They can be a "guide" for you to determine what's going on in a particular area. But what's important is the area you're investing in. Like you said in your post, the ratio is high,  but the city is run down. Is it worth it to you, to get a high ratio in a dumpy city? You might want to look at cash on cash return. You'll need to know how to calculate it, but it's not that difficult. I believe BP has a calculator for it. I would stay at 10% or above on the C.C.R. PM me, if you have any questions. Best of luck to you. 

Danny G,

You have my sympathies. What a mess! Just so you know next time, I've never heard of a $25k rehab job taking 90 days. My contractor does them in less than 30 days, unless there is some major work, that will take a lot of time. But when I saw 90 days, that raised a huge red flag to me. I hope things work out for you and I'm sorry to hear about your misfortune.

Chuck,

I ran the numbers you put out and one of us is doing something terribly wrong! I come up with a cash on cash return of 11.82%. I took a purchase price of $157k, then I added in monthly expenses of $2778 and rents of $4400. That calculates to 11.82% CCR. Just thought I'd let you know.

John Warren,

As far as hitting the 2%, my answer would have to be yes and no. We're hitting it on some multi units, but rarely on SFR's. In my opinion, the 2% rule is misleading new investors. It's very difficult to achieve and isn't happening in most areas of the country. But there are always exceptions to the rules. Believe it or not, we're always hitting the 2% in one city in Illinois. It's not the "ghetto" and for some reason, properties can be had for a low cost and the rents are high. Butt all of that is rapidly changing, as more investors are finding about it and are buying up the properties quickly. But I would say that that's the exception.

It looks like people covered just about everything. The only thing I have to add is, take inspections with a grain of salt. I had some clown that had 18 years experience doing inspections, look at a property for one of my investors. His report was 23 pages long! He pointed out ridiculous things like a small crack in the sidewalk, a hole no bigger than a pea in the siding,  the screen door closed with too fast, said the garage door opener came down with too much force and it should be replaced ( I tested it and it was fine), and on and on and on. I laughed when I saw the report. So some of these guys will put anything down on the reports. They think that you'll feel like you got your moneys worth, if they put down every little thing they see. Remember, the house you're buying is used. Keep that in mind when looking at inspection reports! 

John,

The rents vary, depending on the city. For a 1 bed, they go anywhere from $500 to $700. Two beds go anywhere from $600 to $900. Each city is different.  It's a very diverse area. Sorry I couldn't be more precise! PM me if you'd like more specific information.

Tushar,

I think you might have a problem renting a 3 bed in Blue Island for $1500 a month. I don't do a lot of business out there but I'm very familiar with the area. I would go to Trulia and check the crime stats for the area. Blue Island can be a decent rental city but you have to be careful where you buy. Best of luck.