Off the deep end South of Austin TX in Wimberley with our first flip!

[Darin M.]

Greetings Everyone,

My name is Darin, and I am shaking my head these days.  I have been studying, reading, scanning and contemplating this path for the past several years, and always said, I should try and turn several houses for a profit and see if we can make a go at this...  But the kids need to get to school, crap the dog has fleas again, I already have a solid job. it can wait.  Oh boy, corporate downsizing......   No job anymore.  Damn.  And for my next career move, "Honey, lets go find some houses to flip!!!!"

This is the first true plunge into flipping homes that I have taken.  This past Sunday, I landed our first contract on a 3/2 single family residence of 1800 sqft here in the hill country.   

we arrived at the following numbers

90,000 For the property (did he really just agree to this?)

45,000 for repairs (estimated high because who likes to run out of money)

11,500 First closing costs (Yes sir may I please have another, gulp)

7,600 holding costs ( so that is what 13% interest a month looks like)

9,700 Second closing costs (time to make my better half REALLY happy)

195,000 potential ARV based on comps in the area

$30,000 plus in profit. (if I line everything up correctly and a meteor does not strike the house)

Okay here is the plan that I am going to try to stick with this project.  I will document it.  The good (did they really just agree to this price).  The rotten (has plenty).  The leaky ( Roof tar is not the right way to fix things.  Duct tape is).  The triumphs (Yes, I did just score a closeout deal on product that actually matches the design and adds $800 to the bottom line) and the Marketing and selling (which is where the fun really begins).

Okay so here is your part in this.  Let me know when I SCREW UP.   If you see something PLEASE let me know.  BP, you are my GURU.  There I said it.  if you think I need help I probably do!  Speak up!

Up next my to do list before closing.

Cheers,

Darin

[Darin M.]

@Raj and everyone who thought I had dropped off the edge of the planet.....  Still here and chewing on this elephant.  One bite at a time, but we are getting closer.

Okay, for starters. this has been a comedy of errors, trials and a few "oh what have a gotten my self into's"

Errors:

• Thinking I could work faster than my skill set - nope did not happen
• Thinking I could demo a house in a week... by myself
• Thinking that only two spots of termites in the inspection report would not be that bad.
• understanding how to get me, myself and I to work as a team

Trials

• The realization that this was actually a to the studs remodel.
• Getting the professionals on schedule (mine that is) from the dumpster being delivered 7 days after purchase date, the roof being off schedule by 3 weeks (time vs Price). to my plumber and electrician becoming very ill and dropping out for three weeks and not having the $10,000 plus dollars in the extra budget to hire this work done it was going to take (I would rather just pay an extra note payment).  
• Having to remove an entire master bath addition that had rotted to the point it was no longer safe to be inside of the structure.
• Learning how to frame the new addition from a Deranged Framer who believed the aliens were coming for us and that he wanted a bonus when I sold the house since "that was customary"
• Firing said framer for no calling /  no showing for the second time on a Friday and even his mother could not find him....  May be the Aliens did get him......  Naah, it was more than likely the drugs he ingested the night before at the party that he went to that several people spoke about.  But the real reason was he called me before 8 am on Saturday morning before my first cup of coffee and gave me 6 excuses why he missed work.  I am just not nice to anyone before my first cup of coffee.
• Watching 7 different leaks in the ceilings as we got a 2" downpour in a single hour and did not have the new roof on yet.
• Not having a fully draw out plan for the renovation so we are not changing plans mid stream.
• Praying that one of the non grounded duct tape joined wiring circuits would catch fire and burn it to the ground.
• Managing family life filled with four children

"What have I gotten Myself into"

• Oh I do not think this budget is large enough..... 
  • Finding termite chewed walls - 
  • 50' plus feet of rotted base plates which all had to be replaced
  • window guys who wanted $500 in labor per window - I ended up at $40 a window installed
  • Roofers who want an additional $1000 dollars for work that I did not authorize
  • completely blowing the labor budget
  • Completely blowing the Demolition budget by 3 times the cost
  • Off of the Drywall budget by $2300

Basically, this has been a crazy lunatic filled adventure into renovation that has me learning as if I was drinking from a fire hose.  But.... there is good here.

People have been stopping by asking questions.

Realtors are leaving their cards for me to call them when it is close to ready.  They have clients wanting a 3/2 modern farmhouse styled home with a little bit of land where they can just move in and enjoy.

I was off on the comps per foot for this area.....  I was low.  which will make all of this a success in the end.

I will try to be better in posting these final weeks but I can not promise anything.  I have some critical things to attend to.  My four year baby girl just asked me to dance.

Cheers,

Darin