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All Forum Posts by: Darin M.

Darin M. has started 8 posts and replied 117 times.

Post: Off the deep end South of Austin TX in Wimberley with our first flip!

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44

Recently I'd been told that cast iron waste pipes tend to crack when they are not used for quite a while, so don't be surprised if the camera inspection shows that to be the case.

The good thing in regards to this (which having cast iron "dry out" makes sense) is that someone has been living here the entire time so hopefully cracked pipes will not be the case.  Will find out today since the plumber is scheduled for about 1 pm.  This is the only time I have ever found my self actually hoping to find giant hair balls in the pipes (because my wife and three daughters all have LONG thick hair and they get to deal with it on a regular basis since I have none).  I am going to talk with a good friend who is a master plumber about the cast iron "drying out" and see what he says. I will report back.

Cheers,

Darin

Post: Off the deep end South of Austin TX in Wimberley with our first flip!

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44
Originally posted by @Tiffany Plovie:

@Darin M. Ask for a longer inspection window to make sure you are not missing anything. I am concerned about the termites. They often do more damage than expected, and will not know until those walls are opened up.

   If there is one thing I do know about flips, it is that they always cost more and take more time than you think they will. I would use the framing issues and inspection reports to drive the seller's price down. Frankly, you need about 10 to 15K more profit to allow for a larger margin of error to make this deal worth your time.

 Thanks Tiffany for the extra info!  An 

Yes the seller has already agreed to an extension on the option period so I have another 10 business days to work with. Also the inspection report came back. All 53 pages if it. If anyone ever needs a solid inspector call Aaron at DBL check inspections. He sent over a great report which I will comb through tonight in great detail. Okay this phone is too small for my fat thumbs so I will finish this update when I get back to the house

Post: I have a meeting with a bombed out cabin.

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44

greetings,

I have a potential purchase of a property that I am meeting with the owner next week here in the hill country of TX that is a 2/1 if you do not take the caved in roof into consideration.

On .2 acres

In subdivision

On city water 

On septic

Roof is severely buckled

Several broken windows

Property is trashed from what I can tell

And of course the owner when I talked with them said it was in great shape.  " have you seen the property recently?"  " well I guess it has been awhile"....

Taxed amount is $70,000 plus

Taxes last year were just over $1200

Unknown build date. Thinking 1950's buy the style since it matches my late grandfathers place.

My first thought is that I need an engineer to come visit to see if the building is salvageable.

Lots are going from 18,000 to 32,000 in this neighborhood

Comps for is area come back at the following

Sqft $95.50

Average selling price $62,500

This is the UGLIEST cabin in the area.

Here is the kicker

Most of the houses near by are actually about 1800 plus sqft and comp for $210,000

It will need the following:

  • complete gut and remodel ($45,000)
  • At least two dumpsters ($1000)
  • The garage structure may not be stable?
  • Several days of tree work or one big crew with a chipper ($3000)
  • New septic system $20,000 (I think this area is solid rock)
  • Hard money plus holding cost. 15,000

My thoughts on this property are as follows:

  • offer $5000 as the cabin is a tear down with a Maximum offer of $7500
  • Leave one wall in place and call it a remodel and bring this place ack to life as a small rental for grad students / retirees who are building their dream house and need a place to live
  • Get the deal set and wholesale it off to one of the many builders in the area
My questions are: How do I price this thing?  It is a completely bombed out train wreck and I have never seen a house in this bad of shape. How would you handle this one? Am I missing any exit strategies?

Thanks in advance,

Darin

Post: Off the deep end South of Austin TX in Wimberley with our first flip!

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44
Originally posted by @Jaclyn B.:

Cast iron plumbing is a pain in the you know what. I lived in a house that had cast iron plumbing and when those pipes go.... boy do they go. We had sewage backing up into toilets, tubs, and sinks in two bathrooms. Get rid of it as quick as you can!

 Having rotor rooter coming out today while my last ac contractor is out there to Do a camera inspection of the pipes...  

On another note I do not know if it is a good sign or not but my home inspector comment of this is the worst house he had inspected since he was in east austin 6 months ago...  I will have to let the numbers guide this sale.

I also sent off the extension amendment to the owner last night for another 10 business days so we will see if he is willing to budge on this.  I do not think it will be much of an issue since he just wants this thing gone and has not lived in the house for the past 4 years.  We will see.

Post: San Antonio, TX REIA

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44
Originally posted by @Chris Marroquin:

Hey guys, also wanted to point out that there are a number of meetups out there for free to attend along with these clubs. PM me and I'll send a few that I know of.

 Just sent you a quick message.

Cheers,

Darin

Post: Off the deep end South of Austin TX in Wimberley with our first flip!

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44

Tuesday Afternoon Update:

Okay here is where we stand on this property as of this point:

$1346.60 in House , septic and Wood destroying insects inspections and Septic tank pumping.

The good

  • the house is still standing
  • the house is still standing.
  • the Foundation is good.
  • I get to use a bobcat in the back yard to fix drainage issues

The Opportunities

  • the roof has to be replaced - joy
  • the Master bathroom may need to be completely re-framed due to wood rot by water
  • Complete new HVAC system
  • there are cast iron pipes installed in this house and are 10 years past their life span maybe...
  • Oh yeah, there are termites.  potentially. joy.
  • Septic Tank alarm system is melted.  I hate fire ants.  and bad electrical work.
  • got a good bid on a new garage door.

to sum it up, we are still in the running but the margins just got much thinner with the framing issue so new to do list includes:

  • Talk with owner about issues and send over inspection reports so they can see the issues from a third party.
  • get an extension on option period for extra bid work
  • wait on the appraisal order to secure financing so I am not just wasting more money.
  • Get a lower price on this contract.

Okay time to go cook for the herd.

Thanks for all of the questions and Luck, I will take all of it.

Cheers,

Darin

Post: Off the deep end South of Austin TX in Wimberley with our first flip!

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44
Originally posted by @Dmitriy Fomichenko:

Welcome to BP community @Darin M.  It is a great place to meet new friends and learn about various aspects of real estate and more. 

Wishing you the best!   

 Thanks Dmitriy, I am going to need it!  

Post: Off the deep end South of Austin TX in Wimberley with our first flip!

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44
Originally posted by @Jaclyn B.:

@Darin M. Are you doing any of the repairs yourself or are you contracting everything out?

 I am doing the easy things myself while subbing out the more technical items:

  • electrical main panel and raising the mast to code
  • roof
  • HVAC
  • And last but not least we may be ahving to raise the roof of the master bath and replacing the sill plate due to moisture penetration (I will assist in this since I am good following directions...well most of the time really)
  • Drywall cause who really likes that anyways?  Besides time is money!

My task list

  • everything else.

Pretty simple huh?  yeah right.

Post: Off the deep end South of Austin TX in Wimberley with our first flip!

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44
Originally posted by @Dave Visaya:

Hey @Darin M.  welcome to the site! I'm looking forward to the success of that flip. See you around!

 Thanks Dave it is getting interesting as of today which I will describe here shortly.

Post: Off the deep end South of Austin TX in Wimberley with our first flip!

Darin M.Posted
  • Investor
  • Knoxville, TN
  • Posts 124
  • Votes 44
Originally posted by @James Tobin:

@Darin M. congrats on getting started!  I'm where you were before taking the plunge and have just been reading everything I can, so I'm watching to see how it goes.  Best of luck with the flip!

 Thanks James, Just keep going!  your first will show up here soon.