tripping over dollars, trying to chase a dime.

[Account Closed]

Hello BP community, this is my first post. I'm a Realtor and new investor outside of Portland, Oregon. Writing this post in a bit of a peeved mood and figured some of you seasoned guys could throw in some advice/laugh at me. First off, I never really imagined I would a flip a house. Partly because I have never really swung a hammer or have been too handy. Most detailed conversations with contractors go right over my head. However, I have always had a passion for homes and RE. Seeing a home in its worst state, and then watching someone renovate and practically make a whole street better is just captivating to me. At the end, it truly is about making a buck though. I caught a glimpse at where that line is. 

Like I said, never really thought I would flip a house until I got the luckiest floor call at my RE office. The conversation was basically: "I need to sell my house. Not making this months payment and I do not care If I sell for what I owe." Me in Realtor mode thought "sweet, quick 6% in 2 weeks and a list back after 1 or 2 phone calls to some local builders". After the listing appointment and signing the papers I sat in my truck and thought to myself, all this needs is a little lipstick, why can't I do it? Long story shirt, I got back out, knocked on his door and filled out an earnest money agreement and made an offer for what he owed. Secured some OPM at 10% and then got to work on the light demo myself (ripping out carpet and trim and doors, awesome stress relief to some Zeppelin)

Once it was a shell and got some bids from some great local contractors, my mind started turning. I went from how clean and great it will be for the neighborhood, to how many pennies can I pinch. My reno strategy was literally I can get this at lowes and have a handyman do this and handyman do that I can paint this and I can paint that.... 2 months later at 2 interest payments later and a fat bill from my not-so handy handyman... I'm paying those trusted contractors to come back and fix lousy work... What hurts the most is the darn thing could be done and probably be in escrow or be listed during the sweet spot. Luckily, I will still make really good money. But I have learned so much about scheduling, my personal limits, and that good work aint cheap and cheap work aint good. That line between being passionate about your end product, and saving some dough.