All Forum Posts by: Bryce Till

Darren,

I believe all signs in Utah must have a permit and are limited to time periods.

"No sign shall be erected, raised, installed, moved, placed, replaced, reconstructed, remodeled, extended, enlarged or altered unless a sign permit is first obtained from the Community Development Department."


I would take down the signs and try something different. If you've listed your personal phone number, Code Enforcement could track you down. Might look bad considering your day to day profession.

Bryce

@Jaime Penix Thanks for your comment. I originally offered 160 and the bank rejected it.

The rehab estimate I have comes from someone who flipped a condo with the same exact layout. They did the same thing I would have to do, take out a wall, new kitchen and two new baths. They did use a interior design decorate which might have added to the costs.

@Elizabeth Colegrove I believe 40k rehab a 245 list price is the "gone wrong" scenario. I live in the same building and with it being a condo I would hope to avoid any big surprises.

I need to really dial in my rehab costs which will be my next project.

With the below comps don't you think I'd get more than 245 for it? I have to think the unit that sold for 339,000 was completely redone.

2002 - $245,000

1902 - $245,000

1702 - $339,000

1102 - $299,999

302 - $245,000

Besides bringing in a half dozen GCs have any tips to estimate a rehab cost?

Bryce

Last week I placed an offer on my first fix-in-flip on a condo. I would like to get everyone's opinion on this deal and whether they would be interested. This will be my first flip. I would appreciate any guidance or tips.

Background: Last July I bought a condo for 245,000 in a downtown highrise. My unit was updated and had a open concept layout. The offer I have placed is for a unit with the exact original layout as the unit I own. My unit number is 502 the unit number Im trying to buy is 1102. Both units are 1300 sq ft, two bed/two bath. The flip unit will need a complete rehab. I asked my previous owners how much the rehab of my unit was and they said between 30 to 40k

The Deal:

Offer $180,000

Rehab costs $40,000

HOA $450

comp price $245,000 (lowest end)

5% to agent/closing $12,250

HOA Expenes $2000

Low End Profit $10,750

Rehab details: Complete gut and rehab.

1300 sq ft of new flooring

Taking down two kitchen walls for open concept layout

Complete new kitchen

2x Complete new baths

Here are the recent comps for the same exact "02" units in the building.

Unit # Price

2002 - $245,000

1902 - $245,000

1702 - $339,000

1102 - $299,999

302 - $245,000

Considering the above comps I think the place might even go for $260k. These condos do tend to have a long listing life which is my main concern. Some units go for outrages prices (1702 went for $340) and others seem to sit on the listing for a while. I believe the open concept layout has the most influence on moving the property.

To the experienced flipper what do you think of this deal?

What is everyone's favorite resource to estimate rehab costs?

Thanks,

Bryce

@Jeff S. say you were set on buying a place at 100k and found out about the leaky roof? What kind of discount are you looking for? How would you proceed with that scenario knowing the flipper needs to move the property?

BP,

I have a potential deal on a SFH 3B 1B house built in 1900.

Listed Price $114K

The house has recently been rehabbed by a flipper but after a strong rain storm yesterday the house has a leak with water dripping into the bathroom and hallway. Two walls, carpet need to be replaced from the flood in addition to fixing the leaky roof.

I am interested in the house to buy/hold and rent it out. Before the rain storm the deal would have met the 1% rule which in my area is very hard to find.

Details about the house:

Exterior: Outside looks okay, roof looks new and the place has all new windows. I did not notice any cracking of foundation. However, I know very little about that.

Interior. The 3 bedrooms have new carpet and new doors. The bathroom is also completely redone. Whats interesting about the bathroom is every square inch of the bath room is tile, even the walls. Is this strange?

The Kitchen also has tile and new cheap cabinets and counter tops.

This would be my second real estate purchase and my first investment deal.

So,

• Do experienced buy/holders avoid old houses like this?
• What can I do to try and prevent buying the place and later finding a 20k issue with the house?
• Considering this is my first buy/hold should I move on and find a house house built more recently?
• Do you try to leverage the known leak to my advantage considering the flipper needs to move this property quickly?

Thanks,

Bryce

Id say i was in a similar situation. I went corporate and it has been great. A great menor of mine said put in at least 5 years of corporate jobs and then look to get entrepreneurial. You'll learn a lot of valuable skills, have people to look up to and make some money. All good things.

Good luck.

@Kathleen Leary Thanks for your idea and look what I found!

The Granary District (“GD”) Project Area comprises approximately ten city blocks of older industrial and commercial development, with
isolated residential uses. According to the RDA, the Project Area contains 95.8 acres of land area. The Project Area was created in 1999 and will terminate in 2023.

My house falls in these 10 blocks.

So this morning I put in an offer at 90k and the seller said he would counter. Im thinking maybe 100k and we settle on 95k. Cash flowing around $350 at those prices close to the 50% rule. I'd do it.

Days goes on and it rains hard, really hard. This afternoon I go to see the property for the first time and the rehab the seller has done looks great. However the roof is leaking and there is sitting water in the bathroom from the rain early in the day. Hallway carpet is soaked. The bathroom and hallway ceilings are sagging with dripping water and two walls are visibly wet.

Thank you God for the rain!

I drive around the neighbor a little more and continue to see encouraging things. Two lots on a street two blocks away have signs from the city for subsidized developments. Really like the area.

Does anyone have any advice for the bad roof, the water damage and maybe any ideas on how I can leverage that to make this a really great deal?

Also, my agent is almost sure the pipes are galvanized. How much of a headache is that?

Thanks,

Bryce

@Elizabeth Colegrove To be honest, I haven't thought that far ahead. I would look to buy/hold it, well, forever. In my state, I can't imagine a Strip Club staying in business so close to down town for that long. There are some other houses on the street, a Mexican restaurant and a hotel near by too.


The house was built in 1900 which always concerns me a little.