My log: First 'live-in flip', marketing, and house-hacking

[Dave Hurt]

Hi BP Community!

So after purchasing our primary residence a little over a year ago, my wife and I have decided to sell it and purchase a multifamily to 'house-hack' and kick-start our rental portfolio.  But first, in order to sell our primary, there are some renovations that will need to be made, so I've decided to document the process as this will be our first 'live-in flip' as well (and hopefully some other beginners can learn something - or at least you all can be entertained!).

I am also putting together my first direct mail campaign with a partner- but more on that in a later post.  

First, the details on our 'flip':

The house is a 4 bed/2.5 bath 1968 split-level home on 0.5 acres, at the end of a cul de sac, with a privacy-fenced wooded lot, in-ground pool, spa, hardwoods throughout much of the house, and some updates including stainless appliances, in an A neighborhood in South Charlotte.  That's the good.  Here's the bad: the kitchen is hideous! Dated tile counter tops, black and white checkered tile floors, dated upstairs bathrooms - all told the house has SEVEN different types of flooring.  Outside of those things, the rest is minor - fresh paint and updating fixtures, etc.  

A home identical to ours (same builder, same year, identical floor plan, one street over) on 0.25 acres, not at the end of a cul de sac, no pool/spa, and no privacy-fenced wooded lot recently sold (3 months ago) for 270k with an updated kitchen - and our market has only gotten hotter in this neighborhood since.  We purchased ours for 210k off market from my wife's coworker in May 2014.

We are doing interior painting ourselves and knocked out about 50% over the holiday weekend, other improvements that I'm currently getting bids for include:

1. New granite counter tops in kitchen, tile backsplash, new fixtures.

2. New tile flooring in entry/foyer, kitchen, upstairs bathrooms, all to match.

3. Replacement interior trim in a few areas.

4. New vanity counter top in one bathroom (keeping the base, sink, fixtures)

After consulting a Realtor friend (AND investor) whom I trust, conservatively the ARV should be 280k-300k based on other neighborhood comps of 4/2.5's (but no recent comps at the end of a cul de sac with quite as much land).

We would be comfortable putting up to 20k into renovations, but do not anticipate needing that much - I will update once I finish bidding out the work.

I will post some before pics in the next day or so!

Thanks for reading!!