From the monthly archives:
A web video blog about lifestyle design, passive income, real estate, vending machines, used cars, and eustress challenges.
Grant and Alan take you on a mini-tour of Cincinnati in search of the perfect house to buy and flip for profit. Many stops are on the map but find out which don’t make the cut right away and which are worth a walk through.
Runtime: 16:21
A quick rundown of the episode:
• Welcome to Episode 34
• Finding the right house.
• WE NEED MORE BOOBs!
Ex·trap·o·latecoined 1872 from extra + (inter)polation ; original sense was “insert intermediate terms in a mathematical series.” Transferred sense of “drawing a conclusion about the future based on present tendencies” is from 1889.
1. To infer (an unknown) from something that is known; conjecture.
2. Statistics - to estimate (the value of a variable) outside the tabulated or observed range.
3. Mathematics - to estimate (a function that is known over a range of values of its independent variable) to values outside the known range.
Still, what the hell are we talking about? Many Ren-Menions have asked us about why we haven’t flipped a house before now. Extrapolation is the answer. When we purchase a home to renovate and hold onto, no money comes from our pockets (usually). As long as the house is cash-flowing on a monthly basis, after 20 years we will own the house free and clear. Basically, we need to take care of a home for 20 years and we will ‘earn’ a free house. How many Ren-Menions would take care of home for 20 years in order to own it free and clear with no out-of-pocket expense?
The more houses we can purchase with the buy-and-hold model, the more ‘free homes’ we will own after 20 years, thus extrapolation. In dealing with the ‘flipping a house’ model, it is far less passive but we will receive what we call more ’shots in the arm’. Since we are selling a home, we must find a realtor (someone who will list the house) and a buyer.
The money we make from a flip will be nice and will help with our monthly cash-flow, but we must continually finds homes to flip and must continually find customers to buy our homes.We have only flipped one house and we are much more comfortable with the buy-and-hold model…but we are always willing to get uncomfortable.
Shoot us your thoughts, you know we love to hear them…
Here is a little video from our weekend at Grant’s cottage, please enjoy the Third Annual Friends & Family Fall Fun Fest Video.
We plan on bringing the Ren-Menions along with us on this ‘flipping’ ride. Here is our first possible home (we have another 14 in the can, but this is ranked #1 on our list). Our first step is to ‘look’ at the house. This lovely home is located in Cincinnati. It is a 3 bedroom tri-level (which we tend to stay away from for our rentals), 1.5 bath, located in a great neighborhood. We will be getting the renovation costs from our contractor shortly.
This is all the information you guys get for now…What would the Ren-Menions be willing to pay for this home?
**UPDATE**
Ren-Menions, here are some more clues. The renovations numbers came back from our contractor at $25,000. His remarks were ’small house, but a great neighborhood.’
Need a Notary? The Ren Men are here to help. No not really. We, along with nearly everyone else in our office, are becoming notaries in order to sign titles for the Ren Auto Group.
Why?
We have one notary in our office, and that is just not enough. Our two salesmen are both becoming notaries. It will make our entire operation run much more smoothly and efficiently.
The Ren Men don’t intend to sell cars, but there will be a time, when no one else is in the office and we’ll end up selling a car and the title will need to be notarized. We figure, since we are making our salesmen do it we had better do it too.
We had to complete an application and will have to take a test on Tuesday. This is a Sunday post and none of the four of us have studied one bit. Good luck to us, we’ll let you know how we do.
**UPDATE**
We did take the test and will not be taking the test. This is not by our chosing, the law does not allow for a notary to have any interest in a car that is being sold. We being owners of the RAG, have interest (money) in every car on our lot, thus we can never notarize any titles from cars that we have sold from our lot.