All Forum Posts by: Shawn McGarity

There is a pretty big meet up on the last Tuesday of each month.  They will have a posting in the Events tab within a week or so.  

@Joe Prillaman MLS?! Wow! Have most of them been low ball offers or pretty close to asking price?

@Joe Prillaman Talk about motivating and inspiring.  Thank you for sharing with us.  That many deals and refinances in 12 months is more than impressive!  As and new investor I am going to definitely have to research and educate myself on delayed financing.  I'm sure you will dive more into this if you do a deal deep dive, but where are you finding your deals and this many of them?

@Bill Goodland I appreciate the comment! And your absolutely right I have to be sure to factor in the carrying cost. On my excel sheet I have all that on there. My biggest concern is my rehab cost (that is my next skill to sharpen) and my ARV estimate.

I didn't dig too deep into ARV since this was just a preliminary analysis but I did see a property that was same size and bedrooms sell for $175k in September just down the road. But if rehab did jump up to 45k+ then margins would definitely be getting thin. This whole deal is dependent on making the property a 3 bedroom instead of a 2 bedroom.

Hello BP Community,

  I have been going through Realtor.com/Zillow and just picking properties to practice analyzing deals.  I want to make sure that I am on the right track because there is a property that seems like it would make sense.  I want to present it to you all with the numbers I have ran just to make sure it seems correct.  And who knows, it may be a deal for someone out there who reads this post (I'm not squared away with all my logistics right now to pull the trigger quick enough).  Also, I have not done any detailed research nor visited the property to verify the condition.  I have just ran the numbers as practice and hypotheticals.  But here are the numbers:

Address (You can look up the specs on Realtor.com): 6871 Station Rd, West Chester, OH 45069

Price: $79,900

2bed/2bath with 1544 sq ft.    ----     Due to good size square footage, would rehab the home to a 3 bedroom

Rehab Cost: $30,000 (Assuming half of that money would be going towards the addition of a bedroom)

ARV (Assuming it can become a 3 bedroom): $145k-$165k

Potential Rent Amount: $1300-$1400/month

If purchased with Cash: Total cash needed - $109,900

      If flipped - Profit of roughly $35k-$55k minus closing cost

If rented - Cash flow of $600+ (7% Cash on Cash ROI) or could be BRRRRed for potentially an infinite % return

I know these numbers are hypothetical right now and would have to evaluate the property in person, but for just a preliminary analysis, this property seems like it has a lot of potential in being a good investment.  If I am way off I would love the constructive criticism on my analysis.  Thank you all and I hope I am correct in my analysis and turns into big profits for someone here!!!

@Ben Sears That is some great advice Ben!  I am getting closer and closer to pulling the trigger on my first investment property and hiring contractors is definitely at the top of my list as biggest worries.  As with anything, there is a learning curve...just not trying to be one fo the horror stories haha.

@Nick Vehr    Hey like @Brandon Turner and @David Greene always say...sometimes the value you get out of a project isn't always capital but knowledge, and that can be more valuable! 

I'm sure the foundation definitely hurt the project and the rehab cost!  And that is pretty cool that one of your mailers got this guys attention.  I wonder if making mailers specifying this type of deal would get more or less call backs?....hmm food for thought!

@David Flores Thats very creative!  And thats a good point you make about it having to be land due to the emotional connection a home would have.  I may have to look into this option.  

And heck, it could possibly be a great opportunity for me to finally get my own land for recreational purposes.  Thank you for sharing your experience and how you landed this deal!

@David Flores That's a great deal!! I initially started my REI research in tax liens at auction. I got scared off from other parties being on the lien (another family member, rehab company, etc.) and reclaiming the property after I would have thrown down the money. I suppose a very thorough due diligence process could reveal that. If you don't mind me asking, what was your due diligence process like?

My personal favorites (so far...)

"How to Win Friends and Influence People"

"Extreme Ownership"

and the one I am currently reading that has really got me motivated..."The Success Principles"