All Forum Posts by: Amy Prosser

So it sounds like the consensus is that it was the lack of a master bath?  That's our take too, and we will be prepared in the future.  Many houses here are 3/1.5 in this price range.  Most of our competition had few to any renovations, most homes in this range don't.  We did new kitchen and baths, even cabinets, new flooring & refinished the hardwoods, new HVAC, granite kitchen counter, etc.

We flipped our second house (did several manufactured homes first), and hopefully closing next month. Not going to make much, and trying to figure out why. The house went on market 7/1/17. So the HML payments really gnawed at profit. Started at $155k, selling for $134k, and glad to escape!

The feedback we got from buyers centered around two categories:  Price (too high), and Layout (didn't like).  I don't get why the price was considered too high, as it was in line with similar houses on the market.  We actually had a full price offer within days, but it fell through.  Buyers had an offer on a different property that came back on market.  Ours was a 3/2, the one they bought was a 2/1.  Not updated, $30k less, smaller, same neighborhood.  It seems buyers here don't place any premium on renovations.  We are thinking for our next flip we will do less reno, less cost.  

The layout seemed to be the biggest problem. It has two baths, but not a true master bath.  Otherwise, it had a kitchen open to family room, so somewhat of an open layout.  Is a master bath that important to buyers?  How do i find out exactly what the problem is when the feed back is so non-specific?  

Marian, I wish, lol.  Not legal here, unfortunately.  Weird you should say that though, my realtor sometimes brings her husband along, and he's an ex-sheriff's deputy.  We actually talked about that while waiting on an inspector, lol.  He said most people get caught because of the excessive utility bill.  Told us about one grow room he found under a chicken farm, you had to walk through the nasty smelling chicken room to get to the hatch in the floor that led to the grow room.  I guess it covered up any weed smell though!

@Aaron McGinnis Man Cave - great, didn't think of that!  Unfortunately, it's more like a Man Cell, not too big, lol

@wendy 

@Wendy Vaidic How did I miss Zombie Apocalypse?  My Granddaughters always talk about one, lol

The house we are buying has an honest-to-God 1950s backyard bomb shelter! Trying to figure out how to advertise this special feature when we go to sell. I don't want to promote TEOTWAWKI (the end of the world as we know it) Chic! Although with our current president, could be a real asset (mwah ha ha!).

I could emphasize the vintage aspect with a bistro table, martini glasses and an "I like Ike" poster. I guess "storm shelter" - we do get tornadoes here, and the house has no basement. Or possibly "Urban Prepper Paradise" lol. Any thoughts?

Thanks, will check these out!

My lender is requiring full vandalism coverage for my flip, and REI Guard only insures to $30,000. Does anyone know of any company that offers full vandalism coverage?

That makes sense, thanks!

I am definitely going to meet with a CPA, but I want to understand on my own as well. We did our first HML this year, and I am confused about how I treat this for accounting purposes. I am using Wave Accounting. I don't quite understand how the Rehab Draw should be recorded. The Rehab Fund of $20k is part of the mortgage loan, so it's a liability. But as I spent each amount to purchase flip items, it also is automatically coming out of the bank account. If I classify each purchase as COGS, then it's showing up twice (as COGS and as part of the loan). Any help would be appreciated!

Thank you so much for your responses, Andrew and Curtis! I guess I just need to look into a meeting in my area!