All Forum Posts by: Christine Krizenesky

@Matthew Paul

I get this as well, but it does make me think about asking to adjust the contract to put down less of an amount. Is it unheard of for someone to rewrite a contractors contract and change terms or meet in the middle, especially if you have a reputable one?

@Jim K.

This did make me rethink having him itemize everything. I don’t if contractors think this is a pain, but at least then I know apples to apples what everyone is charging for what. Thank you, very helpful also!

@Jim Goebel

Thank you, that’s helpful.

We recently bought our first flip and began to get estimates. One of the subs needed is a chimney repairman/tech. He recently gave an estimate for $6500 and wants $2500 down and the balance upon completion. Is it usual to require this much down, up front?

@J Scott

Thank you so much!!! I appreciate that!

@Jaron Walling

That is what holds me back from selling now. We just went through an overpriced flip this week. It had an offer but it fell through because of financing so now it has been sitting for a total of over a year. The agent told us that it was not marketed properly to begin with but so that is why it took so long. Our property is in a good neighborhood but again with winter approaching that’s my hesitation with putting it out on the market now. So solid advice with waiting for numbers, thank you to all for the input. This helps a lot!

Recently we bought our first house flip from auction.com at a great price for the neighborhood it was in for $62500. It is an older home built in 1942 with tons of character. Right now as is I could sell it for at least 100 per our real estate agent. (I don’t have all of the numbers in yet from the subcontractors to know an exact price for the rehab) The major projects would entail a roof, the garage some concrete work on the outside. The inside is all cosmetic - sanding floors and painting, updating the kitchen and bathrooms. (Some of the work we will be able to do ourselves but a lot of the bigger projects we won’t because of time and jobs) The comps are showing that I could sell it for as high as $149,000 or as low as 105,000. The contractors that I have talked to are all busy until winter time so it looks like this would not be done until spring. Am I better off to just put it back out on the market or should I rehab it and try to maximize my return? It just seems like either way I do it, I’m going to wind up with the same amount after flipping so why would I want to rehab it? Thoughts???

@Steve Hall

Thanks for the reply, makes sense. I’m just not a fan of debt and I’m learning quickly how real estate debt is whole different world!

@Tim Herman

Thank you, it makes sense. Question about flipping then. If I buy and flip, how much time do I have before I have to pay capital gains if the money is not reinvested into another property? And if I buy another property with that flip money and turn it into a rental instead of a flip, I don’t have to pay gains taxes on this either correct?

We recently bought a rental and have a mortgage on it, I want to pay it off quick and thought about doing flips and using that money to pay for it. I realize I will have to pay gains on it if I don’t do a 1031 exchange in so much time, but I thought if I do flips, we have to always churn the money anyway so why not pay the gains and pay down debt quickly? Thoughts???