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First Time investor - Fix and Flip/Vacant Home
Hey, I am looking into buying my first investment property. My goal is to fix and flip my first property. I am looking at a home that has been abandoned for awhile and is pretty run down atleast from the outside (who knows what the inside looks like). I found the owners information and am planning on reaching out. Any advice on whats the best way to reach out and any risks or tips to consider before investing in a property that needs a lot of work.
Finding a good script or preparing one will likely help you with this endeavor. If you need one, let me know. Highly recommend calling them as any other message is likely to be ignored.
One thing to think about is the age of the home. If it was built before, say, 1960 there may be a slew of electrical work you'll need to do to stay in regulations with current times and, of course, for the safety of a future buyer.
We had a project which has hit several bumps in the road due to contractor reliability or rather lack thereof. Be sure to check their licenses and if they have reviews. Go ahead and be willing to put in the money toward a good contractor if you're not doing the work yourself. We made the mistake of thinking the person who charged less was the better option, however in the long run we spent more. Learn from our mistake.
Make a good connection at your home improvement store/outlet whatever it may be. They may have ways of offering great discounts. We have saved a ton with our connection.
Expect various delays and try to account for them as much as you can. It could be permits or some issue with the contractors which could all add to your holding costs. I'd overestimate what it will cost and the amount of time I think the project will be by at least a month to give yourself some cushioning and an idea of the margin of error you have in order to earn money.
I'm guessing you also have checked for the ARV and what houses in the area are selling for to help determine if it's worthwhile.
These are off the top of the head, so if I come up with more I'll respond again. I hope this helps and others will add more.
Quote from @Ryan McCombs:
Finding a good script or preparing one will likely help you with this endeavor. If you need one, let me know. Highly recommend calling them as any other message is likely to be ignored.
One thing to think about is the age of the home. If it was built before, say, 1960 there may be a slew of electrical work you'll need to do to stay in regulations with current times and, of course, for the safety of a future buyer.
We had a project which has hit several bumps in the road due to contractor reliability or rather lack thereof. Be sure to check their licenses and if they have reviews. Go ahead and be willing to put in the money toward a good contractor if you're not doing the work yourself. We made the mistake of thinking the person who charged less was the better option, however in the long run we spent more. Learn from our mistake.
Make a good connection at your home improvement store/outlet whatever it may be. They may have ways of offering great discounts. We have saved a ton with our connection.
Expect various delays and try to account for them as much as you can. It could be permits or some issue with the contractors which could all add to your holding costs. I'd overestimate what it will cost and the amount of time I think the project will be by at least a month to give yourself some cushioning and an idea of the margin of error you have in order to earn money.
I'm guessing you also have checked for the ARV and what houses in the area are selling for to help determine if it's worthwhile.
These are off the top of the head, so if I come up with more I'll respond again. I hope this helps and others will add more.
Hey Ryan,
Thank you for sharing, I appreciate you taking the time to respond to my post. I will definitely consider those things as I run my calculations.
Hi Landon, hope everything is well. It sounds like the property will need a lot of work, if you need any help with the project i can help. I am a Painting contractor and can help with any of your needs.
Quote from @Jesse Lopez:
Hi Landon, hope everything is well. It sounds like the property will need a lot of work, if you need any help with the project i can help. I am a Painting contractor and can help with any of your needs.
Sent you a message!
