Fix and flip, out of state...

[Sylvia Hanna]

Six months went by and I still didn't buy my first rehab project.   I'm looking to purchase in the Orlando area in Florida.  There are homes for 30-60K I see online and the resale could be 85K on the lower end in some neighborhoods.  I know this from the research I've done.  

When speaking with a local agent, he insisted that I shouldn't purchase without seeing the property.  While this is a very reasonable statement, I don't see why this is a must.  I know the property is already in shambles.   Seeing it doesn't give me anymore information than I know now.  I am not at the phase where I can look at a home and say, it will cost x dollars to fix.  So what's the difference if I see it or not.  I did my research regarding the neighborhood.  I can see the streets using google earth.   Am I missing something?!  

I have to hire a handy man/ contractor  to go see what the fixing cost will be.   While I realize this cuts into my cost, this is my first one and I expect to "pay".  The style there seems to be tile floors.  How much do tile floors cost in a 1000-1200 sq ft. home cost? what else can be bad?  Plumbing, roof?  I already know a roof can cost between 5-7k.  How much can plumbing cost?   Wiring/electric?  What else can be bad in the home?  

More concerns....

I've spoken with a general contractor and during our conversation he mentioned that he only works about 4 hours a day and that was perfectly normal.  FOUR HOURS A DAY??!  I never heard of such a thing.  I expect the rehab to be finished within a month tops.  It wouldn't be possible to finish it in a month if you're working only 4 hours a day/weekend off.  I haven't dealt with contractors in the past.  Is this the general mentality?  I am not very understanding of clock puncher mentality.   If the work could actually be finished within the time period then I don't care if someone works 2/3 hours a day. It's about getting it done to my specifications and within a specific amount of time.  During the fixing up time-I would be present.  

What else should I consider?  Thanks for reading!

Sylvia

[Curtis Yoder]

The problem with this price point of properties in Orlando, FL is that they are going to typically be in high crime neighborhoods. If that is acceptable to you then move forward. I would definitely come spend some time driving the neighborhoods you are considering prior to purchase. I would also lean heavily on a local realtor that understands the investor and his/her needs. 

I would hate to see you buy something in the wrong spot here in Central Florida. It could take years to recover from a bad purchase. Just because the numbers seem like they are good a high crime or drug infested neighborhood could ruin you. Remember, an investor makes their money the day they buy something. 

As far as the General Contractor you spoke to, lose his number. No real GC works four hours a day. Maybe a pickup truck type guy but you don't want to go there. There are plenty of qualified and respectable GC's to choose from in nearly any city.

Good luck to you!