All Forum Posts by: Liz Cole

Thanks for the input everyone. I was evidently not very clear in my original post.  I knew I was not interested in selling as a flip. 

I'm 1700 miles from the property and I don't have money to do a full remodel to the level of a "flip" - flooring, kitchen and bathrooms since everything in those rooms is dark oak. The area flippers are buying trashed houses for $120-130k and totally remodeling and selling w/i 30 days on market. (The 3 I saw were slightly bigger than mine). 

I thought "rental investor" because overall the house has been well-cared, has a great floorplan, and with some new flooring, and a few very minor things it's a cute house as a rental )for a blue-collar family. I used the calculator on this site and another one AND I thought if I priced it accordingly I could do some local advertising and forego the commission fee. 

I thought "rental investor" because I thought that meant more moderately discounted (based on the condition of the house) not the rock bottom price as a flipper would want and I wouldn't have to worry about totally remodeling a house for some cute little starter family. 

I thought it was more of a "fit" for me today. 

I had three realtors go through and did look at the comps. The only reason I paid any attention to what is currently for sale is to compare what is on the market for under $175K. for a similar house.  

I do understand the benefits of a realtor. 

So what I know is: I don't know anything. :/

A do appreciate the feedback. 

Liz

Thank you for your input @Loren Clive .. The house was left to me but I decided to sell and split the profit since the Estate was broke when my mom passed and my siblings didn't get anything. I was just hoping to do this one myself because there are too many of us. 

This house only needs a little work and all the flips being sold are selling for $125-130,000. and they're pretty trashed and flipping for $180+. ANYWAY, I thought I was being conservative with my numbers...

Obviously, if I sell as a starter that won't work. I thought my price point for the area and comps was a good rental investor deal. 

I do appreciate all the input. I just need to keep reading and watching videos. :)

Liz

@Kevin Siedlecki Okay so that is likely the difference. It's desert landscape that would need weeds pulled about twice a year so I calculated $25/mo landscaping. Outside of Phx, AZ so hopefully no snow issues. lol. Sewer is a septic that is in great shape, didn't calculate water or trash fees. But I did calculate 9% for management fees. Also took into consideration the roof is less than 5 and the heat pump (air/heat unit) is under 10. Unlikely foundation issues due to area, etc. so I basically calculated the monthly maintenance at 50$/mo. 

But if I put it up as a starter home with minor fixup needed, then I definitely need to go through a realtor and that will eat up $10K. and I will probably need to offer a flooring allowance. 

And makes me nervous to move forward with my own investing since I got this one so far off. :( Clearly I need to do some more studying! Thank you. I really appreciate the time. 

Okay

@Christopher Phillips Thanks much. After looking at what Kevin said, I can see why. I clearly didn't calculate the figures correctly. I did calculate the rent for rentals in the area and values based on comps, but evidently to promote as a rental investment in the paper would need to adjust. It's a great way to learn though since I inherited the property!  I see it as my "in" to finally start investing. 

@Kevin Siedlecki okay well see, I would have totally messed that up. I'm surprised at the monthly capEx and maintenance figures though. I thought the video's were estimating at lower amounts. (And the taxes are actually about $75/mo) ..

@Christopher Phillips  It was owner occupied. She kept it maintained but never updated. 

It was owner occupied. The neighborhood is a typical starter or rental area though. @Christopher Phillips 

Thanks 

@Kevin Siedlecki . What I wanted to do is price it so I could sell w/o a Realtor. Those updated properties are total rehabs from what I can see. The house is in another State so I'm going off what I know about the house and area and what I can see from the MLS and RE sites.

When I figured it out as a buyer to use as a rental, I came up with $200/mo income. Since I want to start buying once I sell this one, it's like a mini-real-life lesson for me. 

So can you share how you, (as an investor) looked at it? 

Thanks again, LIz

I have a house that I have to sell and divide the money with some heirs. I'm also hoping this will give me an into a long wanted RE investment career start. The house is a 1240sq/3+2/den/carport/lg corner lot/RV access in fair starter neighborhood. I noticed that flippers are buying at about $130,000 or less and flipping at 180,000-195000$. Those houses were in pretty rough shape btw.

I believe this house comps comfortably at about $1050 mo/ rent. I can't imagine it would need more than $10K in fixups as a rental. (more if they gut the kitchen and bathrooms) but really only needs flooring in LR, hall and BR's. The rest is tile. New countertop in kitchen and new fixtures. That would ARV it at about $165,000. Typical ranch style with desert landscape.

So as a rental is $145,000 a decent selling price point?

When I use the calculator as a buyer so much depends on how they frame the deal... so I got confused how to figure it out as a seller.

Thanks much for your insight. (And I hope I'm not breaking any rules by asking. I've been mulling around watching videos and reading post and I'm lacking the confidence on moving forward). I just want to know from an experienced perspective on both sides if I'm in the right ballpark or not.