All Forum Posts by: Donna Welschmeyer

Thank you all for your input! The experience any of you had with the ROI was what I was looking for as well as input about how much easier it might be to sell with a garage. I appreciate everyone's advice.

Can anyone share some thoughts on whether or not to add a detached garage (and if so, what size) to our newest flip project? This is a small home in an older neighborhood in the incredibly hot Denver metro area market. Most similar homes on this street have a carport, though some do have a single-car garage. Some of the homes appear to have converted attached single-car garages to living space. 

It seems that anything that hits the market here will sell--and fast! How does a detached garage impact appraised value? How important is a garage to buyers? Is the fact that ample room exists for the addition of a garage if the buyer chooses enough to make up for not having an existing garage at the time of purchase? 

Thanks for any feedback.

I am fascinated by these tiny homes and love looking at the ways builders are incorporating the "essentials" into them. I have a file of space-saving techniques that I have seen in these, not that I intend to build or live in a tiny home, but that could be incorporated into larger dwellings to improve the use of space there. 

As far as in-filling and backyard dwellings, I agree with what many have said regarding zoning and code restrictions. Particularly as back-yard dwellings, these will likely inspire some heated discussions at city council meetings! Maybe municipalities could take a look at what Grand Junction's requirements are; it sounds like they have put some thought into it.

Good points, Bill and Brad. Those of us (three of the four participants) who might be doing some of the work are experienced contractors in our areas of expertise, but I see how that could get sticky. Thanks for your insights!

Travis, our partner in this deal is a realtor who specializes in short sales and foreclosures, and he has worked this deal with the seller (with all appropriate disclosures made, etc). 

We have successfully flipped six properties in the Denver metro area in the last few years. This has been a part-time deal for us as we both work full time and have done most of our own work. Of course, that means that we hold the properties for several months, making our holding costs too high. Our new goal is to work more with contractors so we can turn properties more quickly. We'll see how hard it is for us to let go of the reins!

A colleague has offered to split a deal with us on the purchase of a SF property at below market value ($130,000). ARV is $235,000 - $240,000. Rehab costs will be around $40,000, so the profit margin is there. Here is how we are currently talking about structuring the deal:

Partners (colleague and his wife) put up $85,000 (interest free) toward initial purchase. (This is half of the rehabbed cost.)

We put up the remainder of the initial purchase ($45,000) and front the rehab costs.

Any work done by any one of the four of us will be calculated/paid at the going rate for that job, although most of the work will be performed by contractors. We will locate/furnish some of the contractors and the partner will do the same (based on what we already know about their quality of work as well as bids they submit). 

The property will be held in our LLC name and we will execute a promissory note to the partner for the cash he put up as well as an agreement to split the profit 50/50 on sale.

What else should we be thinking about before we sign on the dotted line? Thanks!