Flipping houses for anyone who cares

[CMNILS87]

Looks good. I also flip houses but it doesn't really get the ladies "wet" when I mention it.. Some women tell me that I have their dream job. Thats it. Work on your game my friend. bishes dont care if you flip ****.

When women say flip houses.... what they really mean is to design it and pick out and the pretty **** to put back in there. What they don’t want to do is rip **** apart and get dirty. It takes a very particular girl who grew up doing it to do that stuff.

I won’t even go into the chip and Joanna gains crap.

 

[RichardTheFrog]

When women say flip houses.... what they really mean is to design it and pick out and the pretty **** to put back in there. What they don’t want to do is rip **** apart and get dirty. It takes a very particular girl who grew up doing it to do that stuff.

I won’t even go into the chip and Joanna gains crap.

Agreed 100%. I've never even watched those shows.

This all goes back to my theory about how females are worthless but they've tricked the world into thinking their body parts are golden.

 

[RichardTheFrog]

.I make 20% to 40% annual returns on my units in the under 50K per unit (sometimes WAY under 50K)

Can you give me an example with numbers? Using $50k as the purchase price, what is your profit per month?

And wouldn't the ROI be negative for the first couple years, then go positive when you've netted $50k+ in profit since the purchase? From there, the ROI would grow until it basically reaches a "limit?" If you give me a number for profit per month or year, I can tell you what I'm talking about in a graph.

Either way, 40% doesn't come close to what I WILL make in flipping.

 

[R.U.G.]

Depends on the costs assoc. with the house. There maintainence, PM, insurance, taxes, water, trash. Here's an example of a house I just bought.

Cost 94k
Rent: 1700 per month or 20400 per year.
Insurance: 900
Water: 300
Trash: 156
PM: 1632
Taxes: 4396

Total expenses: 7072
NET: 13328
Annual depreciation credit: 3418

Payback: Approx: 7 years (not counting depreciation). Approx. 5 years with depreciation.

 

[RichardTheFrog]

Depends on the costs assoc. with the house. There maintainence, PM, insurance, taxes, water, trash. Here's an example of a house I just bought.

Cost 94k
Rent: 1700 per month or 20400 per year.
Insurance: 900
Water: 300
Trash: 156
PM: 1632
Taxes: 4396

Total expenses: 7072
NET: 13328
Annual depreciation credit: 3418

Payback: Approx: 7 years (not counting depreciation). Approx. 5 years with depreciation.

I think you're proving my point.

If you would have put $94k in flipping and made 110%, then after just 1 year, you would have $197,400.

 

[guru1000]

I think you're proving my point.

If you would have put $94k in flipping and made 110%, then after just 1 year, you would have $197,400.

Depends. IF for example, his property were in the Bronx, which would market at a 7% cap (for 5 family+), then the property value would be valued at $190,400 ($13,328 net profit / .07 net cap)= $190,400.

He could then take the $190,400 at 80% LTV cash out and pull out $152,420, and still keep the property with a $771 monthly mortgage earning $338 net per month or $4,075 per year for 30 years (until the mortgage is paid), followed by $13,328 per year thereafter (plus adjustments for the increased rent) and an asset value that has at least doubled over 30 years.

And this is assuming it were a commercial (5 unit+) property. If it were a 2-4 family in the Bronx, property would be comp'ed a great deal higher than $190,400 and thus a huge cash pull out.

 

[R.U.G.]

Be careful Frogger. Start slow and low and then grow as you learn. You can lose your shirt in picking the bad house. Not bad neighborhood, bad house. Mold, asbestos, roaches, bad building inspector, etc. I used a real world example. If you add a mortgage on 94k, your income drops a lot. Hence, I do not like mortgages and only have them on the few complexes that I still own. They are great for cashflow and appreciation. However, just like Kushner, they often lose money while holding with a lien. It also gets a bit boring, so you need to always keep on moving and shaking new buildings and selling ones that appreciate like a m0therfvcker.

 

[RichardTheFrog]

Be careful Frogger. Start slow and low and then grow as you learn. You can lose your shirt in picking the bad house. Not bad neighborhood, bad house. Mold, asbestos, roaches, bad building inspector, etc. I used a real world example. If you add a mortgage on 94k, your income drops a lot. Hence, I do not like mortgages and only have them on the few complexes that I still own. They are great for cashflow and appreciation. However, just like Kushner, they often lose money while holding with a lien. It also gets a bit boring, so you need to always keep on moving and shaking new buildings and selling ones that appreciate like a m0therfvcker.

That would all be found in the inspection.

Plus, it's possible that those would be good deals. I've gotten rid of massive roach infestations at my trailer park. Spray the whole place, and put boric acid in the walls.

Mold could be as easy as just replacing the drywall.

But it would all be factored in ahead of time.

The house I'm doing now had "surprise" asbestos under the vinyl floor. Nothing I couldn't handle.

 

[RichardTheFrog]

Who pays for a home inspection for cash purchases? I would understand if there was financing involved, but "as is" purchases = mold, asbestos, lead pipes etc.... even include squatters

I pay. It's only ~$300.

Most of the stuff, I can see with my own eyes, anyway.

 

[R.U.G.]

That would all be found in the inspection.

Plus, it's possible that those would be good deals. I've gotten rid of massive roach infestations at my trailer park. Spray the whole place, and put boric acid in the walls.

Mold could be as easy as just replacing the drywall.

But it would all be factored in ahead of time.

The house I'm doing now had "surprise" asbestos under the vinyl floor. Nothing I couldn't handle.

Sadly, as I've been through it, not everything such as mold in the walls and asbestos is easy to remediate. We're doing a job in the BX on a 4 story that has asbestos. Costs - 34k. We're dealing with air monitoring, HAZMAT, NYC inspectors, NYS inspectors, Fed inspectors, etc. It's not done right and monitored, the feds, NYC or NYS will condemn the building. I am sure the mold issue is worse in FL. It's not as easy as you think. Inspectors often miss things and do not go into the dry wall. Team R.U.G. bought a 15 unit in Newark. Passed inspection. A week later major pipe exploded and was 10k in damages plus all the tenants sh!t was destroyed.

You really do know know the what if situations that play out during the running of a rental business. I am speaking from real world experience here.

 

[R.U.G.]

Hijacking this thread again, has anybody installed hotel type smoke detectors in their units? I am looking for something to prevent tenants from smoking inside the apartment.

You can get a few from Home Depot or Lowes which will send you notifications. I believe they are around 150. Check eBay too. I stole them for 50 bucks a piece a few months ago. It's Nest Protect. I love em.

 

[R.U.G.]

Who pays for a home inspection for cash purchases? I would understand if there was financing involved, but "as is" purchases = mold, asbestos, lead pipes etc.... even include squatters

Buyer pays for the inspection and the remediations are negotiable. Usually, we get three bids and give them the highest which then comes in as a credit. We then rebid it later on and pay about a quarter of that. I had a few squatters in Bridgeport. I sent a few of my guys from the BX up there. No more squatters.