All Forum Posts by: Anna Smith

My husband and I are nearly finished with our flip.  We are thinking of listing it for sale by owner as we finish the last details.  We plan to use  a real estate agent once we are finished.  The interior is finished, we just need to add some landscaping, and power wash the driveway.  Can you see any negative to listing it on Zillow ourselves before we list with an agent?

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $87,500
Cash invested: $39,000

Contributors:
Daniel Foster

My husband and I bought a single family house in a quiet neighborhood of Memphis. It has an addition built in the 70's that makes it larger than most in the area. My husband has done most of the work including new kitchen and bath. We added a new roof and updated plumbing, electrical and HVAC with qualified professionals. We hope to make $30,000,

What made you interested in investing in this type of deal?

We have three buy and hold, but want to have some cash free for our next personal home. So, we looked at other strategies. We decided to try a flip. Our first in 13 years.

How did you find this deal and how did you negotiate it?

We had a friend and real estate agent point out the neighborhood and house to us. The house was well overpriced and smelled like cat pee. We offered what we thought we could and still make a profit. We were very worried about the what the ARV would be as this is not out normal neighborhood. The sellers were initially asking $129,000. We offered $85,000 and settled at $87,500.

How did you finance this deal?

We paid cash.

How did you add value to the deal?

We left nothing in the interior untouched. We added new kitchen, baths, walls, paint, flooring, roof, HVAC, electrical update, plumbing... and modern pretty touches. We did not do an industry flip, but made it a place we would live.

What was the outcome?

We are putting it on the market soon. We expect it to sell between $160,000 and $180,000.

Lessons learned? Challenges?

It took A LOT more time than we planned and we aren't rookies. We should have hired out more work, but we were worried about making a profit.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Amy Foster is a great real estate agent for finding deals.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $87,500
Cash invested: $39,000

Contributors:
Daniel Foster

My husband and I bought a single family house in a quiet neighborhood of Memphis. It has an addition built in the 70's that makes it larger than most in the area. My husband has done most of the work including new kitchen and bath. We added a new roof and updated plumbing, electrical and HVAC with qualified professionals. We hope to make $30,000,

What made you interested in investing in this type of deal?

We have three buy and hold, but want to have some cash free for our next personal home. So, we looked at other strategies. We decided to try a flip. Our first in 13 years.

How did you find this deal and how did you negotiate it?

We had a friend and real estate agent point out the neighborhood and house to us. The house was well overpriced and smelled like cat pee. We offered what we thought we could and still make a profit. We were very worried about the what the ARV would be as this is not out normal neighborhood. The sellers were initially asking $129,000. We offered $85,000 and settled at $87,500.

How did you finance this deal?

We paid cash.

How did you add value to the deal?

We left nothing in the interior untouched. We added new kitchen, baths, walls, paint, flooring, roof, HVAC, electrical update, plumbing... and modern pretty touches. We did not do an industry flip, but made it a place we would live.

What was the outcome?

We are putting it on the market soon. We expect it to sell between $160,000 and $180,000.

Lessons learned? Challenges?

It took A LOT more time than we planned and we aren't rookies. We should have hired out more work, but we were worried about making a profit.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Amy Foster is a great real estate agent for finding deals.

@Mark Krupa Thanks Mark. If you don’t mind sharing: what price did you buy the unit, what is your renting price? Do you have a lot of vacancy? Where is your unit? Thanks!

@Eric Delcol. I should have specified, a coastal vacation property... beach type. But am open to location. I would just like to see if people that own vacation rentals are able to buy and rent out for a profit...

I own three investment properties and am working on a flip. I’m on vacation and have been thinking about the numbers of a vacation rental. Does anyone own vacation rentals? How do they work? What do your numbers look like? What is your purchase price vs your weekly rental price in high and low time?

@Mike Shayi think he’s referring to the rule of thumb: monthly rent being 3% of the price of the house. House costs $30,000 Monthly rent $900 I would do it!

We bank and have insurance with USAA. Their services are great. However, they will not insure our flip because it is vacant. They want to farm us out to a an affiliate company. So, who do you use?

@Leon Li Look further into WHY their credit is so bad. We have two tenants with bad credit. One is a single woman who got cancer and couldn’t work for a while. She’s paid back her debt, is back to work, and healthy. She has been great. The other is a young couple with two kids. They don’t like debt and pay cash for most things, so they have low credit scores. They have also Ben great tenants.

I have called a few roofers in Memphis, but am looking for a recommendation for our flip.  Obviously, we want a quality roof, but we would love a competitive price!