All Forum Posts by: Tim G.

there are a couple banks in Cincy that offer loans to cover the purchase price and rehab costs.  Union Savings and Spring Valley 

Congrats on the quick sale and profit.  A good friend of mine just sold his house on Bailey Rd in 1 day for full asking price. Seems like C Falls is hot right now!

Where is the property located at in Cincy?  Maybe you can find a local buyer on here?

if you go to the Pro Desk at HD, they will give you pricing.  I don't know if you can buy directly from the factory. 

There are better areas in Cincy to pursue.  Westwood is a declining neighborhood IMO. 

They say gray is the new beige!

I agree with Daniel, you should base your offer on the current rent numbers.

With that being said.....

How long have the current tenants been in place?  If for a long time, you should have a conversation with them about raising the rent.  They most likely know they are getting a good deal, so you can ask them what they think is a reasonable rent increase.  If they are involved in the rent increase conversation, they may not feel "alienated" by the new landlord.  You can also talk about a scheduled rent increase.  1st year is $25/mo.  2nd year is another $25/mo and 3rd year is $25/mo.  Or do $37/mo 1st year and $37/mo 2nd year.  Now you're up to market rents and they don't feel like you hammered them with a big rent increase right away.

I also think you should have a reason to justify the rent increase to the tenant.  Ask them what issues they are having with the property.  Then tell the tenant "I'm going to increase the rent $25/mo (or $50/mo) but i'm going to improve that part of the property for you.  Does that sound fair to you?".  Makes the tenant feel like they are at least getting something for the rent increase.

My coworker bought a duplex in St. Bernard a few months ago with well below market rents and this is how he went about it.  Worked very well for him.

Also @J Scott, I listened to the podcast you did with @Joe Fairless yesterday.  You provided some great information and things to think about!

Thank you @J Scott.  I obviously over complicated it.  I have everything on a spreadsheet currently.  Need to start looking at something a little more advanced though.

Here's what I came up with.  This is all the money that went out and all the money that came back.

So this seems like a very noob question but I am having a serious brain fart here.  Almost embarrassed to ask this!

I just sold my second flip and i'm trying to calculate the exact profit amount.  I've crunched the numbers several different ways (including the BP flip calculator) and always get a different number.  They are all within about $2000 which is a pretty big swing I think.

I have 2 HUD's (buy and sell), rehab costs and holding costs. Is there anything else I need to factor in?

I think my confusion is in the taxes and closing costs in the HUD's. Some of the rehab cost was also buried in the loan and some was paid by me.

I'd be happy to share the HUD's and numbers with someone who can help me!