All Forum Posts by: Kim Heretick

I think a bachelor's degree is a must for anyone who can get one.  That said, the degree is not the end goal, a career is.  I started college after High School but my web development business took off and I dropped out.

I was doing well in that and another business without a degree until the market crashed.  Then, everything went to crap and I was only qualified for menial jobs locally or I could move across country and get paid 1/2 of what I was making.  That was an extremely humbling experience.  

So, I went back to school later in life, kicked butt, did an internship, got hired into a leadership development program at a big company and watched my career and salary soar (I worked as hard for them as I did for myself).  Right after graduation, I was making $20k more a year than I owed in debt not including valuable benefits, like 401k matching.

It's pretty easy to make 6 figures a year consistently with a good Bachelor's degree.  Not so when you're in your own business (you have to get there & make it through crashes and shifts).

My electrician was trying to get my son into the trade, bragging about how he made $100k last year for the first time.  I had to talk to my son later.  My electrician has been in the Union for 25 years, was promoted to supervisor 2 years ago, and said he had such a good year because he was literally working 80 hours a week on a project.  That sounds steep and underpaid to me.

2 years ago, I quit and decided to flip full time.  I still use what I learned in college getting my Business degree and from my corporate work experience and always have that to fall back on.  I knew what I wanted to do out of college when I went back in to finish my last 2 years and made sure there was going to demand in that job market.  I see people who want to be psychologists and counsel people but don't want to get a P.h.d. and other risky majors.  That's not reasonable and it ends up being a dead end for some.

@Daniel Kramer, I think I know the one.  Spanish style?  I considered buying that one so much that I took my kayak past it to see how it was.  Looked great.  Wasn't falling toward the river from what I could see.  I didn't go to the auction that day because I thought the bank would be there to bid it up too much but they didn't end up doing that.  I'm glad I wasn't bidding against you!

@Daniel Kramer, it's in the Beverly area of Toledo near Anthony Wayne Trail and Copland. Nice area and nice street but prices max out around $200k if it doesn't have a river or golf course view.

Thank you for your feedback on the plumbing.  That would be a huge relief!

Kim

I close in 5 days on a 1927 beauty in Toledo, Ohio. REO will cost me $99k and ARV is $195k. 2300 SF, 3/2.5, 2 car attached garage.

Previous owner installed PEX plumbing but didn't pull any permits. I'm nervous about this and what the building inspectors will do because I think they'll be in this house. It needs some big work done.

To get the clay tile roof fixed $15k. I have to wait until spring and the roof is leaking.  It's partially covered by a tarp.  Roofer told me to setup bins and buckets in attic to get through winter in Ohio.  That freaks me out.

Has 3 YO boiler but has never had AC and will need it.  All of the steel windows need scraping and painting.  Aside from that, I could have whole house electrical replaced (new service was already run) and will at least need to run new electric to the kitchen.  Needs some plaster work from the roof leaks & plumbing cutouts, 2 full baths are pretty much a gut, new lighting, and my team will refinish the floors, replace kitchen & back hall floors, paint, and clean.  Also, needs some landscaping, new storm doors, and a little exterior stucco work.  I will probably have some of the kitchen enlarged because an old "phone room" butts into it.  This will require some new cabinetry (keeping the gorgeous originals it already has.

This will be a restoration more than a renovation.  I'm trying to bring it back to it's original glory with some modern conveniences, not gut it.

I'm very excited about doing this one.  I find old ones like this to be more gratifying.  However, I'm wondering if there's really going to be any profit left.  Most scared of the non-permitted plumbing cost because I didn't factor it in.

I agree with the above replies.  I live in Northwest Ohio and there is a very nice house that is priced fairly low near me that's been sitting on the market for 6 months all because it doesn't have AC.  I live in a pricier area and it's not what people want at this level.

Search your property on Zillow and use the map view to see recent sales of homes in the surrounding blocks.  Did they have AC.  If not, how long did they sit on the market and for what price.  Would you be selling to an owner occupant or a landlord?  Most landlords prefer to not have central air to have to maintain and prefer window units.

I just bought a house with no AC to flip and I know I'm going to have to bite the bullet and have it installed as well.  No fun!

I'd pass.  A better one will come along!!  You either need to pay a lot less or have a lot less to do!

Unfortunately, banks don't change anything for anyone.  They usually set their parameters for the sale then have agents or auctions deal with the rest and stay hands off (and off the phone).  If they're saying cash only they won't deal with financing even if you offer a lot more than cash buyers do.  They don't want any chance of an offer falling through and usually want to close in 14 days or less.  The only way I know of is if you could get a friend or family to buy it with cash, then buy it from them with your financing.  :/

Do the prior owners still own it (Auditor's office would know) or does the bank own it? It makes a difference. One is a short sale and the other is an REO sale. Is it cash only or do they allow financing?

If it's a cash only, as-is, sale they will be weary of an appraisal or an inspection as part of an offer.  They expect buyers to do this before making an offer because they will not make any improvements to the property.  They expect offers for the house as it is.  Your offer would most likely be rejected even if you are the highest bidder if you include any contingencies.

Have they closed the window to making offers?  If not, maybe you can get an appraiser in there right away and then make your offer.

You can also do research on houses that have sold recently within the immediate area that are similar to yours via Zillow to come up with your own appraisal (subtract a bit, but not much, for paint and carpet if the comp's do not have those new in home sales).

At the end of the day, figure out the worst case scenario on this house, do some research, and bid accordingly.  That's your best bet.  Lower your offer if you do not feel comfortable.  IMO, professional appraisals are only valuable to banks giving a loan.  One appraiser may value it differently from another and they're not inspectors.

Biggest Hurdle WALLPAPER!!!  I'm no longer scared of it.  This is what I learned.

I read all advice on how to get rid of it.  Purchased steamers, wallpaper remover solution, fabric softener, the thing that puts holes in the paper, and I thought we were ready.  Ready for hell.  Except for the bathroom with the shower, the paper did not come off cleanly or easily, especially in the foyer.  It was going to be hell to get the walls looking good.  Luckily, my handyman came by and recommended we STOP REMOVING THE WALLPAPER.

Did I mention the wallpaper was adhered directly to the drywall?!  No primer under it.  Thank you builder (NOT)!!!

Bathrooms with showers have been treated over the years with steam from the shower, so it came off cleanly with a steamer.  Nowhere else!

WHAT WORKS (read entirely before beginning, follow each step exactly):

1. Cut loose paper off walls with a cheap snap-blade knife.  Only leave paper that is well adhered.
2. If you have loose or obtuse edges along the ceiling or in corner, caulk them (smooth out with your finger) with paintable caulk.  I like DAP Alex Painter's Acrylic Latex Caulk - White which can be found at most home stores.
3. Prime wallpaper with an OIl-based Primer, like Zinsser High Hide Cover and Sealer, or Guardz (a little goes a long way, use cheap paint roller cover that you can throw away).  I've used both and they work equally as well to seal the wallpaper so it won't bubble and peel when you wet it with mud or paint.  Oil-based Primer covers the old pattern better, and allows you to see where you've used it.  Guardz is clear.  *never use exterior paint or primer indoors because it for off-gasses for months**
4. Mud the wallpaper seams with Joint Compound, mud pan, and tape knife.  Mud any areas you cut out wallpaper too.  Fill mud pan about 1/3 with mud and if you get pre-mixed compound, add a couple tablespoons of water to it.  Mix thoroughly until creamy smooth.  This makes it easier to spread.  I like to mix with cheap plastic tape knives.  Don't worry about spreading it smoothly because you're going to sand.  Just put a line of mud down the seam and about 3-4" on either side.  I found it easier to spread it on horizontally than I did vertically but whatever works best for you.  Let dry overnight.
5. Sand the mud smooth with a drywall sanding sponge.  I use a flashlight up the wall to see big divots and lines while sanding.  Run your hand and feel for smoothness.  It doesn't take much sanding.  It's okay to have a little imperfection but you shouldn't feel it with your hand.
6. Dust the walls off with a microfiber mop and clean up the dust from the floor.  The mop will get most of the dust off the wall and that's good enough.
7. Prime walls with Drywall or PVA Primer.  DO NOT USE REGULAR PRIMER.  This is a MUST DO or you're paint will not have an even finish.  The mud will suck the paint in.  Any cheap Drywall/PVA Primer will do.
8. Paint your walls as you normally would and no one will ever know there is wallpaper under it!!!  Smooth & beautiful.

PICTURES:

Purchased via Sheriff Auction for $152k + $775 in fees.

Projected ARV $200-210k.

Actual $233k minus $6k in seller assist = $227k

NEEDED:

1. Medium Tree Removed
2. Exterior Paint & Work
3. Tons of wallpaper Removed
   Bathtub Leak Fix & Ceiling Patch
4. General updating to take it out of the 1980's

TIGHT BUDGET:  My first attempt at reno budgeting for this property included getting rid of ugly biscuit colored bath surrounds and renovating bathrooms with tile, painting the cabinets, installing a granite counter top, new carpet, new lighting, wallpaper removal, new kitchen floor, etc... which added up to $50k.  So, I'D BREAK EVEN after selling costs ($13k).  UNACCEPTABLE!!!  

Always project your budget and update it.

THE RIGHT BUDGET:  I scaled back the bathrooms, the painted cabinets, the counter tops, the lighting, and more to get my projected budget to $20k (I always go over a bit).

THE RESULT:  The house sold for no less even though I put less into it and I am walking away with $30k after selling expenses.

I'm going to add individual posts explaining how I successfully dealt with wallpaper and made inexpensive updates that increased the value (and figured out where to not spend).