All Forum Posts by: J.D. Holifield

thanks. oddly enough i did not think of that. 

i wanted to mainly figure out how many houses should i hold?

whatever i can afford?

leverage everything out? or only half? is there an equation?

thanks. keep the advice comming. all is welcome

ok so. i am still new at flipping. our first one went great! on budget (a little over) not much over time budget.( 40 days from closing to on market) 

now it has been on the market 33 days.

i paid cash for the property and rehab.

but... now... im gonna need some more cash.

i could get financing to fund another flip and after we sell this first house we will have money to buy 2, but as i play all of this out long term i would rather not be holding 2,3,4 properties at a time. i noticed that it takes much less time to rehab than sell the property. 

so i guess my question is 2 part.

: how do you sell your house so quickly? as per @J Scott our house is nicer than our comps and our price is at the median price per square in the neighboorhood. and it is a great neighborhood. average dom is 38. and our home is at 210000 and the high on the market in hood is 274000.

:how many flip homes do you have at one time, and how do you afford that without a boatload of cash? ... and still pay your own bills :)

also if @J Scott is out there, i noticed that in your first flips you had a few at a time. how did you do this? i cant stand doing nothing, but i seem to be in a stalemate until i sell this house. any help is welcome.

thanks in advance,

J.D.

Thank you all for your advice. ok so here is an "UPDATE".  

first i am planning on purchasing this property cash. i know i will still have holding costs but it will not include interest on a note, which i assume helps. also my partner is a realtor, so fees are at least less if not none. (495 listing fee to broker) 

secondly the investor i am looking to get the property from said he wants 85000 for the property. this comes with a dumpster, roofing materials, a sink and faucet for kitchen.(already delivered since he was planing on rehabbing this house.)

additionally i found out that the home as an unfinished room over garage FROG or UFROG fully framed but no finishings except power. this will raise the square footage by about 400 square feet. based on CMA per square foot this raises our ARV to 189000. the comp homes (6) have taken on average of 20 days to sell. they are similar size 2400sqft and less nice than ours will be. ps our comp homes are pulled from homes sold in the last 6 mo. there are more of the same (a little higher) on the market. obviously when they are sold the price drops a little due to negotiations.

finally, today i had a home inspector come look at the house. (thank you @j scott )he checked everythig. crawl space, attic, walked everywhere to check floor, electric, plumbing, air, heat, chimney, foundation, porch, driveway, code violations, etc... very thorough.  he pointed out a few things i did now know. i have alot of contractors in my network, many of who i consider "friends" and have helped in some way or another, so i called them to get a quote and their advice on the project. 

we sat down tonight and addup costs of rehab. downstairs duct work, roof labor, tile, carpet, laminet, paint, minor landscaping, foundation work (previously quoted), drywall, fixtures, adding ac to FROG, etc...

OUT TOTAL CAME TO 35000 WITH A LITTLE FLUF!

i am sure we missed some stuff, but am confident we did not miss anything huge that is inspectable by inspector. this gives us room to spare i believe...

What ya think now?

Originally posted by @Jerry Houk:

yes what j scott said for sale means nothing, look for the homes that have sold around it in the last year and use those as comps. And get a very detailed budget on material can add up very fast. And make sure its a experienced gc bid and have them draw up a contract on it. Get cost down to 70 and rehab to 35 would be better margin so if you must let it go fast at 150s you can. Good luck 

Thank you. Great advice. as i mentioned in reply to jay we did a CMA on the property.

Originally posted by @J Scott:

The house for sale is meaningless until it sells... Who knows, it could sell for $120,000.

Do a full comp analysis to determine your ARV.

Also, get an inspection to verify the scope of work. 

Get firm bids on the work. 

If the numbers are the same after that, then move forward. 

 thank you much. 

we did a full comp analysis. thats where i got the ARV. (my partner is a realtor)

i will definately take your advice on inspection.

ok so i have a deal i need opinions on. just want to make sure i dont goof up on my first flip.

ARV= 175000

cost=75000

rehap estimation=40000

good deal or not?

so this property needs:

some light foundation work. quote on file with local company- not open til monday

new roof- old

and... paint, carpet, has ugly paneling, etc. built in 1970, kitchen rehab(cabinets are good, layout good)

i looked at a neighbor house that is currently for sale for 170000. it has firmika counter, no laminets or hardwoods. vinyl tile and carpet and lenolium. new paint. nice. clean. house.

so again i ask what ya think.

thank you in advance,

J.D. holifield
www.MidStateProperties.com

Check out dirtcheapsigns.com  

nice templates or custom

Originally posted by @Shabyna Stillman:

@Account Closed I'm pretty sure that you can get fined for Bandit signs here in San Antonio but there are so many around...I think some people use a google number to get around it. Thanks for your input.

 ask the town or county (officers may know ask for code enforcement) where i live ,Irmo, SC, the town does not allow them. neither does some random harbison association, but the county only areas dont care. i put some up for my firework stands and the code enforcement people simply brought them back to me(called) and told me not to put them back up.... so i put it across the street which is in the county only and outside of their jurisdiction. all was good.

thats ace of bass!

so do you reply "did you open up your eyes?"

I recently looked into solar panels for my new home. I talked with the local solar panel installer and he told me about state and federal grants that could help me. He also advise me that the local power company would basically act as a battery for my home. In the day when no one is home we would sell power to the grid. At night when we get home and are using more power and generating less we would buy back from the grid. This is known as net metering. at the end of the month if I used 10 kW and generated 9kw I would only be charge for 1 kW. Obviously you could charge the tenant an inflated rate with power included. Hope this helps. Ps some grants or tax credits only work for primary residences. Also there are other companies out west that will install panels, keep the power and pay you "rent" for the roof space. Since these are not available in my area I did not look into them deeply.