All Forum Posts by: Brad Klock

So I am excited and a little nervous. I just purchased a new property from Fannie Mae off of Homepath. I purchased the house for $9,200 and after closing am in for around $9,800. I plan on flipping this property and after a walk thru with my contractor it appears that it will need approximately 18-20K worth of work. The ARV is conservatively 50-55K. The home directly behind this one sold last year for 80K, but it is a little bigger. I purchased the house in cash and will be paying for the rehab with my own funds. I spoke with my bank manager and she said to call when it's completed and they will allow me to refinance for 80% LTV with no seasoning period. This way I can pull all my money back out of the deal. I am starting the rehab on Wednesday and since it is a bad time to sell houses with winter approaching quickly, I plan on putting this on the market in the spring. Let the games begin!

So after a week of negotiations I finally got my first homepath home! I close on November 13th! This will be my first flip as I have only purchased a duplex prior to this. I am excited, nervous, and down right scared all at the same time! So the purchase price is $9,200 cash. The house needs roughly 15 to 18K and the ARP is roughly 50-55K. I just pray I didn't miss anything when me and my contractor walked through it. Any suggestions/thoughts?

Trying to find another one. Numbers haven't been right on a few I looked at. It was funny though cause my wife was disgusted by it but I just laughed and started putting in the new windows I bought. I am running all new flooring anyhow so that takes care of the sticky flooring issue. Haha

So I bought a duplex last September and have had both sides rented. My one tenant moved out last week and I figured while it was open I would just renovate it all so both sides are completely renovated. Needless to say the place is disgusting. You literally stick to the kitchen floor as you walk and it has a serious odor of stale beer and body odor. I also found a used condom on the basement floor. All his really didn't bother me though when I thought about the 4K worth of equity he has paid for for me along with the 1500 I have in the bank from it. Plus I can charge more rent after its all remodeled which should be done in about 3 weeks. I love being a landlord just wish I could find another property as good as this one

So I bought a duplex last September and have had both sides rented. My one tenant moved out last week and I figured while it was open I would just renovate it all so both sides are completely renovated. Needless to say the place is disgusting. You literally stick to the kitchen floor as you walk and it has a serious odor of stale beer and body odor. I also found a used condom on the basement floor. All his really didn't bother me though when I thought about the 4K worth of equity he has paid for for me along with the 1500 I have in the bank from it. Plus I can charge more rent after its all remodeled which should be done in about 3 weeks. I love being a landlord just wish I could find another property as good as this one

Thanks @Elizabeth Colegrove I am hoping that it gets easier.  My biggest problem is contractors.  My cousin is an amazing carpenter, however my projects get put on the back burner (but I get a nice savings) which slows my projects down.  I do alot of the work myself which as I grow this business, I hope to find some reasonable priced contractors to take some of the stress off me.  I spent almost every night after work at my rental for the past month which was taking away time from my family.  Although, my wife and daughters did come help me paint and clean up so at least we got to spend some time together.  I am finishing up the bathroom this week and should have the other side rented by the end of the month.  Then on to the next one!  It can only get easier from here right?  lol  I totally agree that the hardest part is jumping into it, took me a year to close my first deal but that's because another one fell through.  Thanks for posting!

I am usually always around my property.  Right now I am rehabbing the vacant side and my grandparents live directly across the street and babysit my children, so I am always around.  I don't bother the tenant though, just glance over at it and make sure everything is alright.  

So I told you guys that I would try to keep you updated, so here we go.... I put on here before that the one side was rented, which it still is and the tenant just signed another 12 month lease with me yesterday.  I didn't raise his rent though and left it at $350/mth.  I have been working my butt off on the other side (put in 8 new windows, new carpet, paint, and general cleaning).  The vacant side is about 90% ready to rent.  I decided to do a full remodel of the bathroom since they are very small, so that is what the hold up is.  I redid all the plumbing in the bathroom and put in a new shower (there was no shower before) and reconfigured the layout to give it more space.  I should have it completed within a week or so and I already have a renter lined up for that side.  The rent for that side will be $375/mth, so I will be bringing in $725/mth. in rent.  Since I got the zero interest loan for 6 years, I think this makes it a great deal.  One thing that I underestimated was the cost of rehab which I would presume that alot of newbies do.  I put aside 2 grand for the windows/paint/new rear door/general maintenance.  I did go over this budget but not by too much.  After this bathroom is completed, I am expecting to have spent about $2,500-$2,700.  So my total all in cost is around $7,500 with the $5,000 down payment.  Sounds pretty good to me.  Good luck to everyone!

@Micheal Rieves Thank you!  I got the keys and am ready to get started!  I'll try to keep everyone posted on how the progress goes!

@Scott Nipp @John Cimino Best of luck to the both of you!  My only advice (and I am new to this) is to just be patient!  I had another duplex lined up across the street and have been working that deal since September of 2013.  It fell through not too long ago due to the seller backing out and not wanting to sell and I was bummed out.  That same night I was talking to my grandfather and he said that his friend was thinking of selling his duplex and I walked down to his house and we started negotiating.  So it's true that when one door closes another one opens!