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Cat Litter House: Flip # 653 and it could be the worst one yet. Look at the pics and you decide.
Some flips are easy...paint, carpet, clean, and list. Then there are the hard ones.
I've never posted a diary of a flip before. With over 600 flips under my belt I sometimes think that I've seen it all. Then I see something I haven't seen before. This time, It's so outrageous that I couldn't resist sharing. I'll share the visuals, but fortunately for you I can't share the smells. This is kind of a diary and kind of not...I bought it in January so you don't get the day-by-day play-by-play, but it's not done yet so this isn't old news either.
I came across this deal from a wholesaler who I met on BP (thanks yet again BP for making me money). He hadn't seen the house in person but he had heard it was in bad shape.
I sent my acquisitions guy down there to look at the house. When he came back he said, "that's the worst house I've ever seen." At first I thought "Come on, really? You've looked at over a thousand houses for me!" Ultimately, I took his word for it. We threw a number at the rehab and ARV and made an offer. It was accepted.
Here are the numbers:
ARV $400,000 (probably a little more, I hope)
Rehab $175,000 (probably a little less, I hope)
Since there were some unknowns I had to make a conservative offer. It would take a while to fix this place up, so I had to add some margin to cover the carrying costs.
My offer: $125,000.
Closing was about a month later. The seller agreed to move out and leave the key at the title company. On move-out day, I went down to the house to see it for myself for the first time. When I opened the front door, this is what I saw.
Ok, so now I knew that my acquisitions guy was right! We were in for it!
Have you ever seen anything like it? Wait, it gets worse. More to follow!
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Thank goodness for outsourcing
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Originally posted by @Brian Burke:What do you all think I should do, paint, carpet, and sell? Not to be on this one, by this point the smell is so bad that you can smell the cat pee from two houses away. The cats got in the attic, between the first floor ceiling and second floor subfloor, and even in the void space around the curvature of the inside of the bathtub (between the wall and tub).
I'm thinking a match or bulldozer may have be the easiest and cheapest approach ...
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Wow. That's all I can say. Great work so far!
Just stumbled upon this thread! @Brian Burke you are a truly a VISIONARY and COURAGEOUS investor to not have gone running and screaming down the street when you opened the door to this house. I am a newbie working toward my first property purchase and I have to say that I am glad that this wasn't the first thread I found when I join BP - Wow! Great work so far! I can't wait to see the "after" photos.
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UPDATE
Ran comps today. ARV at time of purchase was estimated at $400K. I knew that was conservative, but there weren't many comps. It was a bit of a shot in the dark. The market in December was a little questionable, too, and I was a little nervous about market direction after prices fell in the third quarter. My number seemed safe however.
Since closing, there have been several sales. It now appears that the market is on solid footing, as the comps are fairly consistent and range from $510K to $550K!! I saw a couple of the comps come on the market and remember thinking that there was no way they would close that high, but they did.
So I've settled on a list price: $525K. Goal is to be on market by the weekend.
@Brian Burke Thanks for the update. I'm still confident with my $539K assessment, so I'm putting good thoughts towards you getting several offers over asking and a confirming appraisal! Looking forward to seeing the listing.
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@Account Closed I think you are right, and thanks for the good thoughts!
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@Brian Burke WOW!! What a treat to have a swing like that in the neighborhood since acquisition. You've certainly earned the payday.
I'm looking forward to the final pics!
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Well done sir!
I would love to see the reaction of your future buyers going through this thread when it is all said and done.
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Any updated pictures or a link to the listing?
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@Chris Vail yes!! Pictures coming later today. Here is a teaser:
Front Before:
Front During:
Front After:
That house is depressing...how could anyone live in a house that has huge spider webs all other the place?
@Brian Burke I took a sneak peak at the listing. Looks great! There are other nearby props for sale in that price range but yours is really brand spanking newly rehabbed and very tasteful. I love white kitchens. I predict you get lots of interest and some offers at asking or above. Looking forward to the numbers. And the back story on your purchase, if you care to share. Congrats!
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Here they are, y'all...the long awaited before and after pictures! What would you have done differently?
Walking in the front door:
Living Room, enter the front door and look left:
Dining room as seen from the foyer:
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Kitchens and baths sell houses. I would have had a hard time convincing a buyer of that in the former condition, but I think this kitchen will sell this house now.
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I would hardly describe this master bedroom as "cozy" until we came in and cleaned it up a little bit.
I think the master bathroom looks a little better now, too. Why did the stager put towels on the counter??? Those have got to go.
Previously, this upstairs hall bath was the only functioning bathroom in the house. The word "functioning" is being used very loosely here.
We didn't even realize this was a bathroom until it was cleared out and we discovered that there was a vanity and toilet under all of that stuff.
The family room looks a little better now, too. Come on, you know you miss the cobwebs!
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Finally, the back yard looks a little better too. I think the deck had some dry rot. Anyone think it could have been saved?
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Great Pictures! If you are willing to share your numbers I would love to know! It looks amazing.
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Now that you've seen the transformation, the only thing left is to see if it makes any money. It went on the market Friday, will there be a stack of offers on Monday? Time will tell. List price is $525,000. The final tally on rehab isn't in yet, I'll report that with the final numbers after COE.
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What a transformation! ! ! Hope it is worth the effort. Can't wait to see the numbers on this deal, hopefully I could learn something for my next deal.
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It is amazing how people can live like that. I just cant even wrap my head around it!
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Wow. Thanks for sharing.
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Amazing. I hope to be like you when I grow up.
I don't know your market well (and only on paper) but you'll have offers tomorrow for sure.
Rehab and profit numbers after close of escrow? Unless you get a cash buyer, you won't be back with numbers until Labor Day. Such a tease.