All Forum Posts by: Emily L. Wiersema

Depending on the quality of the unit and number of beds and baths...I'm not sure you could cash flow in Tosa or Shorewood at that purchase price.  I would use rentometer to determine what market rents are...it may be difficult to cash flow once you don't live in the property.  There are luxury apartments renting downtown for $1800 per month...if you bought a property for $400k...roughly using the 1% rule do you feel confident you could rent each unit for 2k per month?  As previously mentioned you do not need to spend that much money on duplex and there are lower priced options.

I also have to say the rent expectations seem ambitious for the size of the house and location...

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $78,000
Cash invested: $115,000
Sale price: $250,000

1890 farmhouse with 3 bedrooms and 1 1/2 baths turned into a 3 bed 2 full bath. Renovations included complete exterior: roof, gutters, soffit, fascia and siding. Inside included basement work (sump pump and drain tiles), new kitchen flooring, cabinets, fixtures and countertops, new bathroom fixtures and flooring, new windows, paint, doors and so much more!

What made you interested in investing in this type of deal?

I’ve always been interested in real estate investing and flipping. The purchase price made this large project too good to pass up and provided a lot of areas of renovation to learn.

How did you find this deal and how did you negotiate it?

I found this deal on the MLS, I offered full asking, and was able to negotiate 2k off during the inspection.

How did you finance this deal?

I financed this deal with a renovation loan

How did you add value to the deal?

I added value by a complete exterior renovation, cosmetic upgrades, bringing the basement up to safety levels as well as turning a half bath into a full.

What was the outcome?

The house sold the first day on the market and I profited approximately $15k after all expenses and reimbursements were made.

Lessons learned? Challenges?

I learned a lot about project management and using multiple contractors. I’d likely stick with just a GC in the future and let them a age any subs that are not doing a good job. I also learned about how to account for carrying costs better…I did not originally have utilities accounted for and they added up over 6 months…also mortgage payments while your buyers offer is processing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My agent, lender and some contractors were excellent. Caitlin Nankee at Shorewest Realtors, Loan Depot and Abacus Construction.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $78,000
Cash invested: $115,000
Sale price: $250,000

I bought this 1890 home in September and it needed SO much work. I replaced the entire exterior including roof, soffit, fascia, gutters and siding and some windows. On the inside I completely gutted the bathrooms, turning a half bath into a master retreat. Additionally, I refinished the hardword floors, added new flooring in the kitchen, new carpet, refinished the kitchen cabinets, made over the pantry, new light fixtures, new countertops and kitchen fixtures and appliances. The basement also needed a lot of work with a new sump pump and drain tile. It was such a labor of love and I'm really proud how it turned out!

What made you interested in investing in this type of deal?

I’ve always been interested in real estate investing and flipping. The purchase price made this large project too good to pass up and provided a lot of areas of renovation to learn.

How did you find this deal and how did you negotiate it?

I found this deal on the MLS, I offered full asking, and was able to negotiate 2k off during the inspection.

How did you finance this deal?

I financed this deal with a renovation loan

How did you add value to the deal?

I added value by a complete exterior renovation, cosmetic upgrades, bringing the basement up to safety levels as well as turning a half bath into a full.

What was the outcome?

The house sold the first day on the market and I profited approximately $15k after all expenses and reimbursements were made.

Lessons learned? Challenges?

I learned a lot about project management and using multiple contractors. I’d likely stick with just a GC in the future and let them a age any subs that are not doing a good job. I also learned about how to account for carrying costs better…I did not originally have utilities accounted for and they added up over 6 months…also mortgage payments while your buyers offer is processing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My agent, lender and some contractors were excellent. Caitlin Nankee at Shorewest Realtors, Loan Depot and Abacus Construction.

Thanks everyone!  @Jason Bott if you are willing, I'd love some more info!

Hi everyone!  I wanted to see if anyone had advice on home owners insurance when flipping properties.  I've flipped one so far and just got regular home owners insurance, bundled it with my car and then cancelled.  It was a lot of paperwork and I'm not sure it makes sense to do consistently, also they want you to "live" in the home which I'm not planning on doing going forward.  Any recommendations around insurance for properties while flipping?

@Dmitriy Fomichenko thank you!!

@Ryan Husser

Thank you!

Yes this property required significantly more work, it was not treated well throughout its lifetime and had tenants also treated it pretty rough! The work that was needed due to the age were not glarmorous and mostly basement work, sealing the brick foundation, drain tiles and sump pump, new siding and roof and windows. The furnace was pretty old but I let that one slide, didnt' upgrade and A/C. But the low purchases price somewhat accounted for the work that was needed. Also, some old lead plumbing.  I'd recommend just having a realllly meticulous inspector to catch all these concerns. As a seller they are annoying but as a buyer they are your best friend!

I originally intended to BRRRR and ended up flipping because of the extra rehab costs and lower rent in the area. I definitely heeded the advice of always have a back up plan when I purchased it knowing I could flip it if I couldn't BRRRR it. I would make sure you have options even if you purchases with the intent to BRRRR.

I walked through the property with three general contactors, two roofing companies and one basement repair specialist.  Many GC's will charge a consultant fee, 2/3 did so that cost about $400, but it helped me understand pricing and get a feel for GC's as it was my first time working with them and well worth the cost. I ended up going with my GC for most work, a roofing company and the basement specialist.  In the future it was a lot to manage 3 and I will likely go with a single GC going forward and have him subcontract everything out...especially since we formed a very good relationship and I now have that level of trust. I'd recommend looking for a team of people that want you to succeed just as much, and my realtor and GC became great teachers in the process...it felt like a real partnership.  But I also earned their trust by being responsive, and flexible and realistic and not emotional so it goes both ways!

Overall I'd say just manage your expectations going into it and treat like a learning process, and then anything you might profit is extra :). I had to tell myself many times even if I break even I will learn a lot and the only thing I will lose is time. And always have the plan B!

Good luck!!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $78,000
Cash invested: $115,000
Sale price: $250,000

I bought this 1890 single family 3 bed 1 1/2 bath 1500 sq. ft. house in September and it needed it SO much work. I wanted to maintain much of the character while offering modern fixtures with a contemporary/farmhouse aesthetic. It received a completely new exterior as well as two gutted bathrooms and MANY interior cosmetic updates.

What made you interested in investing in this type of deal?

The purchase price was too good to pass up! I had been looking for a while and the market was competitive so I decided to just take the plunge! The neighborhood is great and I knew the market was strong.

How did you find this deal and how did you negotiate it?

I found it on the MLs and moved fast. I viewed the property and submitted an offer within 2 days. I had been working with an agent and had already put it offers on several properties and was outbid. There were plenty of solid offers for the seller however I was willing to give them a 60 day close and allow them to give time to the tenant to move out. Other investors wanted to close fast and I was able to give the seller what they needed.

How did you finance this deal?

Since it was my first flip I financed this deal with a rehab loan from a large lender. It covered the purchase price and rehab costs to the property. I had money saved for a small down payment and contingency budget for additional work. I spent all of it, but will make it back on the sale.

How did you add value to the deal?

It was a 3 bed 1 1/2 bath home when I purchased it and I turned it into a 3/2. There was large unused square footage in a den off the master bedroom and we turned it into a master retreat with master bath, and walk in closet. Additionally I completely refinished the exterior including new roof and siding and windows. I also upgraded many of the features on the interior including two gutted bathrooms and many cosmetic updates.

What was the outcome?

Given the market today it was great! I sold the property in less than 24 hours on the market and over the asking price! I will turn a nice profit however I have a few expenses to pay myself back for which I didn't totally factor in in the beginning like the interest lost on paying the mortgage and other carrying costs. I'm glad there was such a cushion to be able to account them!

Lessons learned? Challenges?

I learned soooo much! I always told myself even if break even on my first property the only thing I'll have lost is time. Rehab loans are paperwork intensive make sure you contractors can handle it. Run the numbers a million times and then run them a few more just to be safe. When picking contractors you have three options: quality, price and service/communication. You'll only get two...which are most important to you.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My real estate agent Caitlin Nankee with Shorewest Realtors was amazing! She was patient, knowledgeable and talked through all my worries. She is super responsive and organized. I also worked with an amazing general contractor Jek with Abacus Construction. When I mentioned you only get 2/3 with contractors...they are the rare exceptions. Great communication, price and quality of work. They both saw me as a partner and wanted to ensure my success. I will work with both on my next project!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $78,000
Cash invested: $115,000
Sale price: $250,000

I bought this 1890 home in September and it needed SO much work. I replaced the entire exterior including roof, gutters and siding and some windows. On the inside I completely gutted the bathrooms, turning a half bath into a master retreat. Additionally, I refinished the hardword floors, added new flooring in the kitchen, new carpet, refinished the kitchen cabinets, made over the pantry, new light fixtures, new countertops and kitchen fixtures and appliances. The basement also needed a lot of work with a new sump pump and drain tile. It was such a labor of love and I'm really proud how it turned out!

What made you interested in investing in this type of deal?

The purchase price was too good to pass up! I had been looking for a while and the market was competitive so I decided to just take the plunge! The neighborhood is great and I knew the market was strong.

How did you find this deal and how did you negotiate it?

I found it on the MLs and moved fast. I viewed the property and submitted an offer within 2 days. I had been working with an agent and had already put it offers on several properties and was outbid. There were plenty of solid offers for the seller however I was willing to give them a 60 day close and allow them to give time to the tenant to move out. Other investors wanted to close fast and I was able to give the seller what they needed.

How did you finance this deal?

Since it was my first flip I financed this deal with a rehab loan from a large lender. It covered the purchase price and rehab costs to the property. I had money saved for a small down payment and contingency budget for additional work. I spent all of it, but will make it back on the sale.

How did you add value to the deal?

It was a 3 bed 1 1/2 bath home when I purchased it and I turned it into a 3/2. There was large unused square footage in a den off the master bedroom and we turned it into a master retreat with master bath, and walk in closet. Additionally I completely refinished the exterior including new roof and siding and windows. I also upgraded many of the features on the interior including two gutted bathrooms and many cosmetic updates.

What was the outcome?

Given the market today it was great! I sold the property in less than 24 hours on the market and over the asking price! I will turn a nice profit however I have a few expenses to pay myself back for which I didn't totally factor in in the beginning like the interest lost on paying the mortgage and other carrying costs. I'm glad there was such a cushion to be able to account them!

Lessons learned? Challenges?

I learned soooo much! I always told myself even if break even on my first property the only thing I'll have lost is time. Rehab loans are paperwork intensive make sure you contractors can handle it. Run the numbers a million times and then run them a few more just to be safe. When picking contractors you have three options: quality, price and service/communication. You'll only get two...which are most important to you.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My real estate agent Caitlin Nankee with Shorewest Realtors was amazing! She was patient, knowledgeable and talked through all my worries. She is super responsive and organized. I also worked with an amazing general contractor Jek with Abacus Construction. When I mentioned you only get 2/3 with contractors...they are the rare exceptions. Great communication, price and quality of work. They both saw me as a partner and wanted to ensure my success. I will work with both on my next project!