Sold! FLIP $42,000 Profit 19.4% ROI - A house no one wanted...Seattle/Tacoma

[Tarl Yarber]

Hey Bigger Pockets!

Its getting busy here in Seattle for me and I would like to post more than I do.  In the mean time, I thought I'd write up this property that we just sold because of the challenges involved and describe the missed opportunities of others, my hopes are for you to learn more so that you can seize a great deal that everyone else is passing on and have the confidence to act on it.

1908 year built, 3/1.5 1373 sqft home.  After rehab 3/1.75 (made half bath into .75 bath).

Before Pics:

After Pictures:

(We had a heat wave here at this time...poor plants died...but it still SOLD in 2 days!)

I purchased this property March 27th 2015 and officially closed Escrow for the resale just now.  SO approximate acquisition to disposition was about 130 days, give or take, not too bad considering the initial issues involved. 

This house was brought to me via the MLS of all places, been on market for a while, no one wanted it, REASON? The House was SLANTED throughout and most people thought the price would cost too much to fix in order to make a profit.  Depending on where you are from, you may have a slab foundation or you may have a stem wall on the perimeter for the house with beams and posts running throughout the center holding up the house (creating a crawl space). 

This house had only ONE (1) Beam running down the center of the house, and it was beginning to look like a U as well.  Consider the problems there.  You cannot tell by the pics at all, but that house was sinking between 2inces to 5 inches in the center and throughout prior to us working on it.

Believe it or not, MOST investors wont go into a crawl space to check out whats in there.  I am 50/50 on that...well more like 20/80. Ill always stick my head in, but almost never crawl around (that's what other people are for).  HOWEVER, this house was pretty easy to see the problems in if you crawled in about 3 feet, I did this, and with the help of my carpenter, we figured out that the solution would set us back about $3500.  DONE!

We kept the old beam in place, replaced all the pier blocks and supported all the posts, jacked the center of the house up with multiple 3ton jacks, ADDED a brand new 2nd beam to help support the span of the Joists, AND get this, had to strap down one side of the old U beam and crank it down to help keep it from staying a U shape. Finished!

What most saw as a serious problem had a pretty simple solution if you have the right team and people in place.  Keep in mind, I do ZERO of the hands on work for all my properties, I network with GOOD honest people who give fair prices and when I find the right people I keep them BUSY and loyal and I PAY ON TIME ALL THE TIME.

Property NUMBERS:

Purchase: $158,000 (CASH)

Rehab: $52,000 ish (planned on 47,000 but added more to finishes later and had some electrical we were not planning on, welcome to rehabs)

Closing/holding/listing fees/misc: $29,000

Concessions to new buyer: $5000

SOLD: $280,000 (when purchased we planned on $260,000. Stay conservative)

SOLD IN 2 DAYS!! Their original offer was $270k, and they asked for us to cancel the open house we had planned, we countered at 275k and would cancel open house, they agreed if we gave 5k in concessions and increased sale to $280k.  SOLD! Appraisal was a worry of mine, but no issue there surprisingly.

TOTAL PROFIT 130 days: $41,958

Remember to do your research on properties fast and effectively, know your stuff OR do what I do, make strong relationships with people who know their stuff. A while back I use to stay away from all slanted and sloped houses here in WA (there are a lot of 100plus year old homes here), but then I started asking more questions on how to fix them, met the right people, and now I have complete confidence on what these things take. Hope this information helps you in your business!

[Vivian D.]

great after pics! Congrats on the flip! I like the flooring in the bathroom. Looks like vinyl to me, or is it a type of tile? Do you remember the brand name, and where you'd get it? Many thanks!

[Account Closed]

So true, thanks for sharing.

[Tarl Yarber]

Originally posted by @Vivian D.:

great after pics! Congrats on the flip! I like the flooring in the bathroom. Looks like vinyl to me, or is it a type of tile? Do you remember the brand name, and where you'd get it? Many thanks!

 Its Vinyl. Ill have to get the brand and type for you and follow up later. That was the first time we used that kind and i cant remember what its called.

[Jacob Vincent]

Tarl, 

Congrats on the deal!

Thanks for sharing, and thanks for providing that quick tip at the end.  A knowledgeable person in the region can help 'short-cut' the entire process when you're in a flip where time is your enemy. 

-Jacob

[Lynn Harrison]

Wow. You have an amazing team. Great job! The carpenter who did the foundation work for you is worth his weight in gold.

I really like the colors and details. Where did you get the metal banister posts on the staircase? Those really add so much!

[Steve Buchanan]

@Tarl Yarber Great job on the flip and very impressive turnaround time from start to finish. What type of siding is on the house and did you replace the existing siding or paint it? Did you ever consider powerwashing or do you always like to paint/replace?

[Tarl Yarber]

Originally posted by @Steve Buchanan:

@Tarl Yarber Great job on the flip and very impressive turnaround time from start to finish. What type of siding is on the house and did you replace the existing siding or paint it? Did you ever consider powerwashing or do you always like to paint/replace?

 Hey Steve! Great question. Its Vinyl siding and we painted it. Before anyone freaks, you must us Vinyl safe paint Always on vinyl siding. Sherwin williams has a great vinyl safe brand. If you do not use vinyl safe paint and put a darker color on it, when the sun heats the paint up, it will shrink the paint and then permanently warp all of your siding thus destroying it....very bad. As for pressure washing, only time id recommend only doing that is if the house has new looking paint. I always paint though because the curb appeal of a fresh new paint job with a color that compliments the interior goes miles when reselling the house.

[Tarl Yarber]

Originally posted by @Lynn Harrison:

Wow. You have an amazing team. Great job! The carpenter who did the foundation work for you is worth his weight in gold.

I really like the colors and details. Where did you get the metal banister posts on the staircase? Those really add so much!

 We ordered them from Lowe's. You can probably get at home depot too

[Lynn Harrison]

Thanks Tarl

[Deshawn Lewis]

great read..congrats on the profit

[Bill Tyler]

Very nice rehab and profit.  Thanks for sharing!

[Karen Musselman]

Beautiful!!!!!!!!!!