All Forum Posts by: Christopher Hill

Rob, thanks for the reply. No I hadn't considered any of those but could you elaborate more on what I can do with tax liens or preservation? I'm not above cleaning but I worry this may be somewhat saturated in my market. 

I'm trying to find an avenue to start a little business for myself and came across a video about 3d cameras and how it's fairly easy to create a 3D tour for homes. I would be curious to know if this is something that's gaining popularity or if anyone sees signs in favor/ not in favor of this as a growing trend. I understand pairing this with other services, regular professional photography, etc may be a more comprehensive business plan. It just seems like a fairly low barrier to entry option for someone who wants to get involved with RE. 

I'm also open to any other ideas for RE related services as a business. I'm recently unemployed and have had to put my plans to get into fixing/flipping on hold but I'm strongly drawn towards having my own business and if I could pair it with real estate and grow it into something more that would be ideal.

Thanks in advance.

 I'm not an experienced investor by any stretch but when we bought our house the previous owner had a mold company come validate that mold was not present. The house was flooded and remediated previously. My inspector also had a mold license and informed us those mold tests can actually be very simple and somewhat flawed as they come in with a handheld machine that senses moisture or whatever. Point being, you may be able to find a company to do the test only and produce that piece of paper if you really want to look like you covered all the bases. But otherwise I don't think there are any hard/defined rules that prevent someone from buying a remediated house if they want it (I could be wrong). 

 Sorry but this just isn't true. Literally all the flooded houses along the bayou have been remodeled into even higher-end luxury housing and are selling with no trouble at all. Maybe you are referring to some of the neighborhoods built on the back of the reservoir that weren't particularly nice or desirable to begin with. 

Hello all- I'm beginning to analyze fix and flip deals. I've have located a few listings very close to my own home. I am familiar with the area as I have analyzed it, and lived in it, for the past 6+ years so I am confident in my (conservative) ARV. However I need some help making sure I'm considering all the costs and have enough for a worthwhile profit or if these are not good enough deals to consider.
 

House 1: Harvey Flooded Foreclosure Single Family (Patio) Home 3 BR/2.5 Bath, 2350 Sq Ft

• Listed Price: $170k (would like to offer less)
• ARV : $300k (~$130sq ft based on comps)
• Margin at Listed Price : $130k 
• Estimated Rehab : $60-70k (house has been gutted post-flood, appears to have had about 1 ft water. Will need sheet rock, trims, flooring, cabinets, toilets, fixtures, interior doors, appliances. Plumbing, electrical, foundation, HVAC and roof remain unknown at this time but the optimist in me thinks most of this was likely operational pre-flood having first hand experience with others who repaired post Harvey. Obviously this is still significant and I'd love to hear if anyone knows of expensive nuances around repairing and selling a flood house in Houston.
• Closing Costs - $6k 
• Financing Costs - HML quote I received was 2 points, $500 admin fee and 1%/month. = $4800 points + $500+ $14,400 interest for 6 months = $19,700 - Is this math correct? This is hideously expensive.
• Closing Costs to Sell - ($300k * 3%) + flat fee listing $4500 = $13.5k
  
• Net Profit  - $ 20k 

House 2 : Single Family Home 4BR / 2.5 bath, 2900 Sq Ft 

• Listed Price: $275k (would like to offer $260k)
• ARV : $420k (~$145sq ft based on comps)
• Closing Costs - $6k minus 1.5% kickback from buying realtor = total $2.1k
  
• Financing- Assume I could use a conventional loan - 5% interest / 6 months= $6.2k (open to suggestions on financing)
• HOA - $300
• Taxes - $600 * 6 months = $3.6k
• Remodel Costs - $90k - The home has very dated finishings, definitely an elderly persons home. Expect to entirely repaint and re-floor, cabinets, bathrooms, fixtures, appliances, outdoor trim and paint. Electrical (70's house), plumbing, and HVAC are all unknowns currently.  
• Closing Costs to Sell ($420k * 3%) + flat fee listing $4500 = $17.1k
  
  Profit : $40k

Thanks in advance for the help. I understand this is somewhat rough and I welcome all constructive criticisms to my logic here. I do have a contractor who does great work at a great price, but may need to outsource to a turn key GC for this size of project if I can. The financing is my other huge hurdle simply because of how much of my margin it diminishes.