All Forum Posts by: Matt Stewart

 Yes, that's been my experience in Ohio.  I'm not sure if different states and counties may do it differently, but any title company can run a title search and issue a policy.  

 Yes, usually the title company from auction.com will reach out and ask if you want to purchase a policy, or title insurance.

It depends on the type of sale.  If it's a foreclosure sale then most liens are wiped out or paid by the proceeds of the sale.  I've purchased several properties through auction.com and never had a problem.  But it is a good idea to have your title company run a quick search for you to avoid any surprises.  And always buy an owner's policy.

I'm not a fan of any "rehab estimator" or book that was written years ago.  The cost of materials is continuously fluctuating, and can vary quite a bit by market, so any tool or estimator won't be up to date or accurate.  You may get a very general idea, but I wouldn't be making business decisions on the information that it gives you.

The cost of materials is relatively easy to estimate with just a little internet research.  The cost of labor will be your bigger expense, and can be more difficult to estimate on your own without first talking to contractors.  Start talking to other flippers.  Find out who they're using for what, and start getting estimates.  The more contractors you talk to, the better you'll begin to understand not only the cost of materials and labor, but the expected timeline as well.   

First flips are not easy.  Feel free to reach out if you're looking for more specific info.

Aside from the numbers I look closely at the area and the neighboring properties.  I don't buy flips on busy streets, or adjacent to a highway.  I don't buy if the property backs up to commercial property/retail.  I don't like seeing an apartment complex nearby.  I look closely at the neighboring properties.  If a neighbor doesn't maintain their property or has trash everywhere that's a red flag for me.

You should look at the property as if you were the end buyer.  If you wouldn't want to live there, then your buyers may not want to either.

Personally I would leave them exactly as they are for now.  You can always revisit it if you start to get feedback that it's a real problem.  

I stay in a lot of airbnb's.  I don't spend a lot of time in the kitchen cabinets.  And even if they were high enough that I noticed, it wouldn't be something that would affect my satisfaction with a short term stay.

@Ben M. I rarely take a draw for that very reason. If you have the means to pay for the rehab and not need to take a draw then why pay for a draw inspection. The HML I've been using lately just returns the full amount of the rehab when I sell the property.

Always always always look at the neighboring properties before you buy a place.  But you're in it now, and you have very limited options.  Try talking to them and explain your situation.  Maybe if a lot of what they have on the porch and yard is just junk, you could offer to rent them a dumpster or get it hauled away for them.  Figure out a way to get what you want while they get something out of it also.

If that doesn't work, talk to the city to see if they are in violation of any city codes.  Let the city code enforcement office be the bad guy, not you.

In this market it's smart to really evaluate what a property needs in order to sell and bring the most profit.  Most of the flips I've sold over the past several years have received multiple offers.  Buyers are buying houses "as is" with no inspection, in an effort to be competitive.  As such, I haven't had a remedy request in a long time.

So you need to evaluate what your house really needs.  Is the roof leaking, or have missing shingles?  Or is it just old?  If it's not leaking or visually unappealing then maybe don't replace it.  That's a big ticket repair.  Same with the windows.  Unless they're metal pane, single frame windows with cracked glass, you may be able to leave them.  Another big ticket item.

If you don't have to spend money on the roof and windows, you can put more money into making the interior of the house pop.  Do the bathrooms and flooring.  If a buyer falls in love with the interior of the home, it makes it easier for them to accept that they'll have to replace the roof and windows themselves down the road.

Of course this all depends on your market, and how competitively you price the property to sell.  Look closely at your comps.  That will tell you how to spend your budget, and what you may be able to save on.  

You're not in this business to create the perfect home with no flaws.  You're in it to make money.  Evaluate every expense.

Exactly what Mike said.  You need to be onsite 2-3 times a week, if not daily.  You'll want to follow up on contractors and be available to solve the issues that will come up.