All Forum Posts by: Brian Beck

@Joe Hollis

I'd second the numbers that @Scott E. put out there.   As a general contractor who works in Woodbridge/Manassas frequently, the rehab cost of $100K is about right assuming a electrical/plumbing/hvac replacement a full cosmetic interior rehab, depending on the style/condition of the exterior that could push you closer to $120K for rehab costs.   If you'd like more detailed info at a neighborhood level feel free to message me.

@Chase Hoover Congrats on the purchase.  Interested in seeing it after it goes live!  

@Joshua Merchant

Message me when you have a minute, I attend one in Fxbg that still meets up in person, good group of people with all areas of REI pretty well represented.

Thanks @Russell Brazil !I definitely learned my lesson on the DCRA permitting, it was at least double the time it would've taken me to get the same permit/scope approved in Virginia. The extra $50K spread would have been nice on this one. That in mind, definitely learned a lot from this one, looking forward to doing more in both NoVa and DC! I appreciate your information on the spreads you look for, I was looking for $225K in DC and $175K in NoVa but it wasn't seeming to leave much wiggle room, I was thinking about increasing my target spread but want sure if that was too large a spread, knowing that you look for that range helps tremendously in that I know I'm not crazy looking at those numbers haha. Now it's just a matter of finding them!

By the way, I appreciate the local focus you and Kevin provide, it's nice having a DC- centric perspective every now and again.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $265,000
Cash invested: $140,000
Sale price: $500,000

This was our second flip purchased (3rd sale), by far our least profitable but the one from which we probably learned the most.

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

The scale of the project was greater than anything we'd worked on previously, at least in terms of an investment, we were also wanting to keep the momentum from our first flip going.

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

MLS thru an agent who's partnered with us before.

How did you finance this deal?

Cash and Hard Money Loan

How did you add value to the deal?

We went up a level to add a true master suite, additional bedrooms/bathrooms.

What was the outcome?

A very long and drawn out permitting process and closing process. bea

Lessons learned? Challenges?

A lot of lessons learned in terms of time/holding costs on projects of this size. A lot about DCRA permitting processes relative to the ease in most of the Virginia jurisdictions, didn't forecast the length of time it would take to sell given the price point/neighborhood (not nearly as quickly as our $400K home last year), definitely something we'll consider before another project of this scale, lastly, we learned a ton about the DC Downpayment Assistance Program and time/bureaucracy involved.

Thanks @Dmitriy Fomichenko !

@Katie Newman Yes, I used a local hard money lender, PM me and I can get you his contact info. I live down in Stafford and would love to find one or two down that way. If anything comes to you that you're not interested in at the time, keep me in mind!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $320,000
Cash invested: $25,954
Sale price: $505,000

3rd Fix & Flip (Purchased, 2nd to Sell) in Manassas, Virginia. 4/2.5/2,104SF contemporary on a half acre. Rehab came in at roughly $80K . After closing costs, financing costs, commissions and holding costs it left us with a pretty good profit for a relatively low-risk and quick (3 Months, 3 Days) project. Definitely excited about this one, looking forward to doing more in Northern Virginia.

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

Location is an easy one to sell in and very convenient for my tradesman which made it easier to work the rehab. Mostly a cosmetic rehab. I was able to be much more active in the project management of this one and given the location, able to utilize a large number of my own crews with whom I've worked for the past 7-9 years in my W2 which I enjoyed.

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

Realtor friend who I've known for a while found it for me after the original buyer backed out.

How did you finance this deal?

We were able to get it utilizing a hard money loan and private money to finance the rehab leaving us with only about $25K invested in it.

How did you add value to the deal?

Mostly cosmetic rehab, created a true master suite in steady of two hall bathrooms.

What was the outcome?

Profitable rehab, excellent cash on cash return.

Lessons learned? Challenges?

Really was able to see the value of OPM in that it allowed me to get the deal for starters, it also amplified my returns as I was able to invest in other places alongside this one. Some of my rehab costing was Covid related (decided to take higher priced materials that were readily available as opposed to risk a longer hold period by saving some money on the materials) but I think it could've been kept a little closer to my target of $75K.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $320,000
Cash invested: $25,954
Sale price: $505,000

3rd Fix & Flip (Purchased, 2nd to Sell) in Manassas, Virginia. 4/2.5/2,104SF contemporary on a half acre. Realtor friend who I've known for a while found it for me after the original buyer backed out, we were able to get it utilizing a hard money loan and private money to finance the rehab leaving us with only about $25K invested in it. Rehab came in at roughly $80K . After closing costs, financing costs, commissions and holding costs it left us with a pretty good profit for a relatively low-risk and quick (3 Months, 3 Days) project. Mostly a cosmetic rehab. I was much more active in the project management of this one and given the location able to utilize a large number of my own crews with whom I've worked for the past 7-9 years in my W2. Definitely excited about this one, looking forward to doing more in Northern Virginia.

Hi @Manriki Gagnon

I grew up in the Woodbridge area and still live nearby in Fredericksburg, but have lots of friends/family there, if you have any questions about any specific neighborhoods I'd be more than happy to help. I am not aware of any duplex/triplex style houses in Woodbridge, they are kind or a rarity in NoVa in general. At your price point you'll likely be looking in the Dale City (22193) or Rt 1 (22191) areas. These will generally have a few options at about the $300K mark, every now and again their is a neighborhood in Lake Ridge (22192) that will have a a sub-$300K option (expensive HOA though). Best of luck!!