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All Forum Posts by: Kim Heretick

Kim Heretick has started 4 posts and replied 39 times.

Post: Labor of Love Flip? Closing in 5 days

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

@Daniel Kramer I don't expect it to be on the market until May, April at the earliest.  I'm still waiting for the roof to be done and to really get into outdoor work.  I also have upstairs plaster damage and bathrooms to finish once the roof leaks are handled.  I've been working on this property and another, slow rolling while I wait for roof.  I can't wait.  They're supposed to start end of this month, weather permitting!

Post: Labor of Love Flip? Closing in 5 days

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

@Nikki Frick you sure can!!  Sorry I didn't see this until now.  Just please send me a link if you so.  Thanks!

Post: Labor of Love Flip? Closing in 5 days

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

@Daniel Kramer I got 6 estimates on the AC.  Unfortunately, high-velocity is crazy expensive.  I guess it's gone up a lot the past 5 years (so the estimators said).  With all the other work on the house that needs to be done, I ended up going with traditional forced air AC for the upper floor only, with blower in the attic.  It is $10k and I had perfect closet space to run the line so it didn't mess up the house.  To do the whole house would be $20k (would need 2 systems).  I also got estimates for mini-splits.  They were more/as expensive (would be great if it was just 1 room).  Also, I'm not sure how attractive they would be to buyers and if it would up the resale value as much as forced air will.

So, hopefully my AC investment will pay off.  I think it will up the value of the home by $10k easily.  It should cool the downstairs a bit because cold air falls.  The neighbor, who was a friend of the previous owner, said the downstairs was fairly comfortable in the summer but the upstairs was hot.  The other downside is since it is a dedicated FA AC system, the vents need to be covered with magnet covers in the winter so ducts don't condensate in the months it's not in use.

The old steam radiator heat has been wonderful!!!  The house stays nice and warm and the gas bills have been so little.  Shocking for such an old house.  I wish my own home had these big radiators now!

Post: Offer accepted on SFH Hammond, IN, but should I bail?

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

Oh, and after my last offer was accepted on a $100k duplex, after the inspection I asked to buy it at $80k.  They accepted.  Inspections always come up with a list of things that could be repaired.  Quantify them and ask for a reduced price.  Mine was extreme and I was shocked they accepted, but it really helps (or gets you out of an iffy deal).

Post: Offer accepted on SFH Hammond, IN, but should I bail?

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

I think you can reduce your costs by buying second hand appliances.  Look on Facebook Marketplace.  You can find some in very good condition.  I've had great success and some sellers will even deliver and hook it up for you.  I do this for all of my washers and dryers too.  If that is all you need to do, it sounds good.

Do you think property values in that area are solid or are they slipping?  That should be a factor.  What will you be able to sell it for later?

Post: Toledo, OH - Licensed Contractors not pulling permits

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

Don, my last contractor that pulled a permit for a H2O heater said he didn't expect them to actually come inspect.  I was told often times they just "pass" it if everything is filed, scheduled, and paid by the contractor and they have good experience with them.  I know city building inspection resources are stretched.  That really stinks that you were trying to get things done right and it resulted in them being more stringent.  Nightmare!

Post: How long should a flip normally take

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

If it's just paint, carpet, and some sprucing up it should be on the market in under a month.  If it's a bigger job and you are doing most of the work, expect 3-6 months before it's on the market.  I've done both.  I work with my own cash and time, so no financing.  Many times, it's not worth the extraordinary extra cost of hiring contractors to do finish work when I can do it with hourly labor and my time.  The extra months cost me most in opportunity cost (I could be flipping other homes) but if my profit is going to be $50k-$100k on one flip, I can take a little more time.  By hiring out for someone to do the kitchen, it would cost me an extra $10k or more.  An extra 12 months of real estate taxes and utility holding costs wouldn't costs me $10k.  Paying contractors to get it done faster doesn't equate (I do hire them to get core systems and structures done right).  It's the opportunity cost that hurts more than the extra time unless your paying for financing.

Post: Homes with ARV's less than $100,000

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

I did a couple but the profits were so tiny, and risk so high, I've chosen to not do anything with an ARV less than $160k (and that depends on what I can buy it for and expect to have to put into it).

I bought one at Sheriff's Action for $45k and sold it for $110k but had to replace most of the drywall.  After all expenses, including selling costs, I made $20k.  I was fortunate that the HVAC system, roof, siding, foundation and bath shower were all in good shape and it already had vinyl windows.  It was a learning experience.  Even without major issues, it was a lot of work for little return. 

Post: Toledo, OH - Licensed Contractors not pulling permits

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

I flip homes in the area by doing "minor" renovations. I don't do complete gut jobs.  I stick to tasks I am allowed to do (patch drywall, paint, replace fixtures, flooring, tile, and cabinets) and hire licensed contractors to do the rest.

I've noticed only 1 out of 6 licensed contractors I've hired in the past (HVAC / plumber / electrician / roofers) actually pull a building permit for the work they've been hired to do.  These are contractors that are licensed by the city, bonded, and insured (I've verified this)... name companies with excellent reputations.  From online searches, it seems like most don't pull unless it's a commercial project.  There's no way these companies have only worked residential a couple times in the past 6 months.  They've hardly pulled any residential permits.

On my latest flip, I am currently having AC installed in the upper floor.  I just realized they haven't posted a building permit and nothing is showing for it on the City of Toledo' s online building permit search.  They've done 2 days of work.  They'll be done this week.

Next week, I have a licensed electrician coming to rewire the kitchen and get rid of the old fuse boxes.  They plan to pull permits.

I don't know what to do now about the HVAC people not pulling a permit.  What do I do at this point?!  Is an inspector going to come in for the electrcial and see the HVAC work done and have an issue?  It's hard enough not being able to pull my own permits because I'm not an owner-occupant or licensed GC, but when the contractors I'm paying top dollar for don't I'm worried it may get me into a Stop Work Order.

Has anyone else had a similar experience?  What happened?  From now on I will insist that it needs to be pulled but this is frustrating because licensed contractors are supposed to do this for their jobs anyway.  Shouldn't they be losing their licenses or does the city just unofficially allow them to work without permits once their licensed and do enough "good work"?  Only THREE Residential HVAC Alteration/Addition permits have been applied for in the city so far this year and it's almost March!  There's no way so few residential jobs have been done in the whole city.

I'm studying to get my Remodeling Contractors License so I can pull permits and manage more of the work.  This will help.  Until then, I need help!

Post: Labor of Love Flip? Closing in 5 days

Kim HeretickPosted
  • Flipper/Rehabber
  • Maumee, OH
  • Posts 39
  • Votes 23

@Chad Boyers Thank you for your feedback and offer!  I've researched the AC options a bit and there are 2 that won't require running duct work everywhere.  That would be awful.  

One, is to have a Dual Zone System.  They install one unit in the attic and another in the basement, then run the duct work only in the attic to upstairs ceilings and in the basement to downstairs floors.

The other way is to do a Ductless Mini-Split.  They basically put AC on the wall of each room then run the mechanicals to the compressor outside.  Each room has it's own control.  However, I've read this fairly inexpensive to install but very costly over the long term.  Like 2x or 3x as much electricity as a window unit.

I'll be getting HVAC estimates soon and learn about the pro's and con's.  I'm curious because I'm looking for a solution for the upstairs of my own old house on River Rd..  The kids bedrooms are up there and they've been living with the heat but it sucks!

I would appreciate a visit from you to the new house.  I"d love to get your opinions.  Just be aware I have a selling agent and I wouldn't trade her for the world.  She's done an outstanding job for me on 3 sales so far.