All Forum Posts by: Andy Sabisch

While the cost will be somewhat area dependent, any work under a slab is going to be expensive.  We had a flip on a slab that we wanted to move the washer location and was quoted $7,500 for that alone.  Recently, a friend of ours had to have cast iron pipe replaced here in PA outside of the house and received quotes ranging from $2,550 to $12,000.  As far as your quote, I would get at least 1 or 2 more quotes and see what you find locally as it may be your area or the company you called with the high estimate.  Either way, digging under a slab is not going to be a cheap repair.

We have run into the same issue on a flip or two and barring the seller bringing more money to cover the difference or starting over, you are stuck with the appraisal that the lender received.  We had one that went the same way and the appraiser said it was a flip which drove his number and when we asked about an appeal, we were told it would have to go back to the original appraiser which told us we would lose again (and have to pay for it).  Are you sure that the appraisal is too low?  Was your ARV too high when you started?  This is why the saying "You make money when you buy not when you sell" holds true.  If your ARV was too high or your reno budget too low, you needed to pay less initially.   But as far as where you are now, yuo are pretty much stuck with the appraisal unless the buyer fell in love and will be willing to bring more to the table . . . or you decline the contract and start over (and hope you get a better appraisal)

We had been doing flips but had the opportunity to buy a MF.  Found others and have a portfolio of MF properties plus doing SFR flips

If you are doing this remote which your message seems to indicate you will be, hopefully you have a GC or PM overseeing the project.  If so, then you should use what they use rather than getting creative and creating more work for your on-the-ground team.  Let them get what they need from where they are used to getting it rather than going to places that they are new to and hope that what you wanted is what actually is delivered.  Remote flips are not the easiest without a known team in place . . . . best of luck but listen to your GC / PM and use their local knowledge.

I know that in many cases the word WHOLESALER strikes fear and annoyance into the hearts of many investors but there are some that can find you deals.  There is one that we are connected to in the Wilkes-Barre region that sends deals that are deals that are scoped accurately on a weekly basis.  I am sure that there are wholesalers in your target area that can help you find properties that are off-market.  If you reach out to some and let them know what you are looking for, let them be your team finding properties . . . . see some bandit signs, call them and let them know what you want.  Reach out to wholesalers that you find on Facebook or Craigslist and see what they bring you.  Hope this helps

Have you checked the calculators here on BP?  There are also a lot of free apps for your smart phone that do what you are looking at doing.  I find that having it on the phone is a plus as I can check deals quickly without pulling out a laptop or tablet.

As interest rates remain high, those that want to invest are looking for higher returns.  CDs are offering in the 5%+ range.  I would offer something in the range of 8% to 12% compounded annually and paid monthly.  Do not under estimate the timeline as you do not want to burn those investing in your project

Jack, You have posted this request several times and received several good suggestions to gain experience.  Have you contacted your local REIGs and attended a meeting or two?  Have you reached out to wholesalers in your area?  Have you defined what aspect of flipping you are bringing something to the table with . . . funds, experience, skills, etc.?  Helping a local investor find a deal and work through it to gain experience is what we have suggested . . . . starting with a passion is a plus, but you need to define what you are chasing and what you are bringing

LVP especially with the quality of what you can get anymore.  Durable, looks good, waterproof in most cases and the cost is reasonable.

If floors are hardwood and can be refinished we have done that on a few but it has to be worth doing as the cost is on par with LVP in many areas.

We used to do tile in bathrooms and even kitchens but feedback from realtors and other flippers is that this is no longer a must-do and not worth the effort

As you found out, any part of the equation being off can make things look totally different.  If the reno costs are more than expected or the ARV is less than expected, you can wind up barely breaking even or worse.

ARV - (Purchase Price + Reno Costs + Holding Costs +  Sales Costs) = Profit

Keep it simple and do not try to force numbers to make a deal look better than it should.  We tried that initially and found that the profit went the way of the dodo bird so to speak.  The calculators here are great to see where you are and if you are honest, you will be able to discount supposed deals and let someone else learn the lesson.  We have seen properties that on the surface look good but either the reno costs were too high or the ARV too low to make sense and passed.  Twice we have seen the property go up for sale partially rehabbed and the seller taking a loss just to get out of the deal . . . you do not want to be that person . . of course, you might be able to get a deal from one that found themselves drowning