Hendersonville, NC - SFR - Jay C

[Jay Chekansky]

OK BP - it's about time I did this.  I'm in the middle of my first rehab that doesn't involve me living in it...unless I'm at the house working after 10pm.

I've completed and documented some vintage motorcycle builds on other sites in the same way that this is going down.  Documenting progress online adds motivation, honesty, accountability, and most importantly...vulnerability.  It is necessary to be honest with yourself and the online community to make progress, share lessons learned, and move forward together.  So here is my first flip (non-hobby flip) in the raw.

I had completed a live in flip in central NY when I was living there - it was a hobby.  After spending all day chained to a desk in the corporate world, I felt the need to medicate myself after hours with hands-on, value added activities.  So I gave my old place the best of the best, created and installed all myself with no cognizance of cost, and off we went.  

This time is different. I picked up this 2/1 SFR built in 1950 in Hendersonville, NC from a wholesaler that I had developed a relationship with.

Initial Numbers:

Price: $67k - $27k out of pocket with a seller note carry for $40k/balloon payment at 0% for 12 months

Rehab Cost Estimate - $13k

Rehab Items - New roof, landscaping, fix deck, flooring, paint, bedroom carpet, update fixutres, update kitchen/bath.  Some things to note- the plumbing and electric have all been update recently.  The wallpaper had not been updated.

Timeframe - Early November start to mid-January finiah.  I plan to do roughly 75-80% of the work myself.

Numbers - Purchase for $67k. Legal Fees for Purchase $1,300. Rehab $12.7k. ARV - Conservative $95k-100k. This won't be a homerun, but I knew that. Holding costs - $47/mo plus utilities.

[Jay Chekansky]

Some things I learned in the first few weeks:

1. Get your rehab team together ASAP.  I run a landscape business full time and treated this flip as a hobby/project initially.  If you want to run 2 business, you better plan on not slacking off.

2. The day after closing is not the day to start making phone calls to roofers, contractors, inspectors, etc. See #1.

3. Get a home inspector there during the diligence period.  Just because you did a successful flip 800 miles away 5 years ago does not make you an expert in a new part of the country.

4. During the inspection process, don't walk around and say "$1500 for the kitchen, $300 in paint, $600 for the bathroom" - document everything that is going to be needed - Every fixture, switch, baseboard, shower curtain - Everything. Then price it out or estimate after the face.

5. Talk to neighbors/mailmen/etc. I was blown away with how nice and informative everyone was.  Visit at a few times during the day and drive the neighborhood.

6. A great opportunity for systems - having a VA take care of changing over gas/elec/propane/water/sewer/etc.

7. You cant have 2 full time jobs at once.  I'm lucky that my holding costs are so low.