All Forum Posts by: Caleb Brown

I just put in an offer on a house that I plan to live in and flip over 2 years. However, the house was in the middle of a "rehab" when the owner lost his job...and so parts of the house are torn apart. 

If I win on this offer, then I am going to have several design decisions to make. I want them to be flip worthy. 

2 of the decisions...

the downstairs bathroom has been totally gutted...down to the studs. So the entire thing will have to be built. 

Also, a load bearing wall was taken out between the living room and kitchen. The way it currently is, is awkward and so I am going to have to get creative to make it look good. 

Where does everyone go to when they need help on things like this?

WOW! I just went through this whole thread. 
I am on the brink of putting in an offer on a house that is a total wreck and I plan to use a 203k loan. However this is making me take a careful look. @Arthur Banks, what would suggest to someone looking to do a 203k so that they avoid the problems that you ran into?

Andy,

I am pretty much looking to do that same thing here in Richmond, VA. I was originally looking for a lender that would let me do repairs on the house before close using an escrow, so the house had to have just enough wrong with it to not pass and scare people away...but not too work much because the escrow was going to be limited to an amount of $3,333. On top of all that the #s still had to work in the end for the flip to be worth it. It was very difficult to find a deal that fit all of this criteria. The problem is the only one I found was the second house I looked at 2 months ago and I just wasn't ready to buy yet. (and the equity available after repair was likely lower than my goal)

However, now I have been approved for a 203k rehab loan and my options have opened up big time. With the rehab loan available to me I could buy a really run down home, have contractors make all the major repairs (for which the cost will be rolled into the mortgage), and then live in the home for a year or two while doing the rest of the work. I plan to rent out a room during that time as well. Rehab loans are more costly upfront, but if you can make it work that may be the way to go. Now I just need to find the right deal.

Caleb

Just talked with a pest control friend and he said carpenter bees without hesitation. I hope he and you all are right. The thought of termites scared me. Such a relief!!!

Hey everyone. Any idea what these holes are in the trim board of this house I am looking at? It's in several places on all sides. I am looking at buying this home. Offers due on Sunday.

House is in Chesterfield, VA / Richmond, VA / Chester, VA area.

So to update things...I still have the same goal but I have now been approved for rehab financing. It's been tough finding the right property to accomplish what I want to do, but now with rehab as an option I can look at homes that are needing a ton of work. As long as the numbers still work it might be better anyways to have contractors do a lot of the major work right off the bat and I just do small things over a couple of years instead of having a home needing major work for an extended period of time. Really can't wait to get my first deal going.

@James Stevens. The cheat sheet looks like a great tool. Do you use contractors to do all of your work or do those numbers come from doing your own work?

Hello! I am looking at a house for my first "live-in" 2 year flip that is in need of repair for several pieces of hardboard siding. Does anyone look at this and have any suggestions on what a repair like this may cost?

I know it may be hard to tell with just pictures...but this is my first house so even just decent estimates would be a huge help to me. The house is in the Chesterfield, VA / Midlothian, VA area. Thanks!

@Elizabeth O. That is great, congrats!

I am curious about that process of getting work done before the loan is approved. Did you have a contractor come out and give you quotes on any of the work before you made an offer?

Wow thank you everyone for the responses. Awesome to see the enthusiasm for investing in real estate on these boards. I am in agreement that there seems to be a shortage of deals out there currently. I have been looking since January without seeing but so many options that fit my criteria. I am finally about to put in my first bid this week...but if this one doesn't work out then at this rate it could be some more time before I find the right deal. 

Anyways, @Adrian Stamer you mentioned making sure I take advantage of being a first time home buyer...I hope to but I am not totally sure I understand all options that are out there. Any resource you can point me to?

Also, this bid that I am putting in is for a house that is going to need some serious siding work in order to pass inspection for the loan. The inside of the house doesn't look too bad. Anyone have any recommendations for contractors good and cheap with hardboard siding repairs?