All Forum Posts by: Kris L.

 No, those were just some photos I took myself.

Hello,

I finished up a flip in Dunedin, at 1545 Pasadena Dr and am puzzled why it is struggling to sell.  It is only a couple blocks off the water, and the lot backs onto a very nice bike trail, but I am not getting much in the way of showings (outside of a couple open houses).  I am trying to figure out if I priced it wrong, or if there is something I overlooked on the rehab that is really brining it down.  Anyways, I figure maybe a different perspective might help me see an issue that I am overlooking.  Obviously I can't include all the photos I have, so I put in the kitchen, master bath and front as those tend to be the main things buyers key on.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $176,228
Cash invested: $65,000

BRRRR project with appreciation focus.
Bought Dec 2020. $65k in renovations including all holding costs. Rented and refi in July 2021. $35k left in the deal with essentially $0 cash flow.
No cash flow, but appreciation is through the roof.

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

Appreciation and close to other properties.

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

Found via yard sign. Offered asking before it hit MLS. Negotiated lower based on inspection due to foundation issues.

How did you finance this deal?

Cash for purchase, private money for renovations, cash out refi at end.

How did you add value to the deal?

Foundation repairs, redoing master bath, drywall, flooring and other cosmetic updates.

What was the outcome?

Left $35k in deal, but property has appreciated about $100k since refi.

Lessons learned? Challenges?

Painting a house takes a lot of hours. Good experience to DIY, but will hire it out on future projects.

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

I wish I could recommend the lender, but I felt they made it a lot more difficult than needed.

Thanks for the tip.  I will give Webb a call.

I am under contract on a flip in Florida and was wondering if anyone had any recommendations for a builder's risk policy for an LLC.

@Benjamin Perles

Based on what I see in my market, they overpay on purchase. I don’t know what else might be in the purchase contract, but the final sale price is such that they don’t seem to make any money on the flip. Last one I saw, they bought at 340 and sold at 344. That with about 75 days of holding time. Unless they have a substantial revenue stream separate from the traditional flip, they aren’t making any money if this example is representative.

@Nic A.

I’d add an outlet tester. They aren’t expensive and can be quite handy at finding some hidden electric issues.

@Kwame Essieh

Can you not get a loan using the stocks as collateral? Selling them might have tax implications.

@A.J. D'Asaro

I must have been lucky. My first BRRRR was only 20% over budget and 30% late on schedule.

@Amey Phatale

I think Zillow’s stock decline has a lot more to do with their failed attempt to get into the flipping business than housing in general.

Houses in my area seem to still be solid.