All Forum Posts by: Account Closed

Approach this whole situation from the sellers perspective. If they were able to take on this house, they already would have. Instead they are stuck with a relatives home that needs carpet paint and siding plus who knows what else to make it market ready!

You should be able to tell right now that the heat functions. You should be able to tell if there is water intrusion from the recent snowmelt (assuming someone isn't there to cover things up), and a thorough home inspection will tell you the rest.

Time is important, more then likely they will want to be rid of this thing (depending on how you present your findings...) rather then a few thousand extra bucks on the sale. Good luck!

 I would definitely add the third bedroom and create as much living area as possible to add to your square footage. Kitchenette - yes if you can do it cheaply. Like of you removed kitchen cabinets during the remodel and they still looked in good condition, and if you can find some decent used appliances. The rest - focus on curb appeal and urgent repairs/eyesores!

 @Bobby Kalchev

I agree in certain situations on testing. We just had a bathroom with surface mold that was tested and deemed treatable with disinfectant and paint. All work was done by a licensed and certified remediation contractor. 

There are other cases such as this one where the same contractor will come in with their Flir, identify the affected area and confirm the visual presence of mold. When the source of water intrusion is known, and the spread of moisture is measurable and its known that the biological growth is spreading from the source across an affected area - what is the point of testing what is already known?

I predict more legal issues with hiring a handyman spreading mold spores around on a remediation job, then there would be just having a legit mold crew remove the water damaged drywall and taking liability on the sanitation and dry out. And of course, for peace of mind hire an independent test after the work is completed. With a multihousing possibly older building I wouldn't want to know the results, let alone share them with a tenant.

The price tag is steep, but if you are already willing to do the rebuild spring to have the water damage affected areas removed , treated and dried out by a remediation specialist. 

Skip the testing, you already know there is water damage which is always a potential for mold growth. As soon as you attach a label to it, you are opening yourself up to acknowledging its presence. Until someone certified confirms it as mold, refer to it as water damage. 

Fix the water intrusion and have the area treated properly. The longer it grows due to improper treatment the more expensive it gets. 

$3 increase in value for every $1 spent on the rehab. 

The Home Depot app should show prices. I've got a basic spreadsheet of each household item but I stick with averages and adjust for quality and size. 

Part of my contractor numbers come from operating a maintenance budget for a large multifamily investor, and being able to refer to that, plus having a good working relationship with the vendors to keep my cost similar to that of my employer. I approach estimates from a position of hiring out everything, and my profit is in the difference of how many of those projects I can do myself. Still new to flipping yet, and lack that luxury of time being worth more to hire out. 

I feel that the real value in the spreadsheet isn't the numbers that are on it, it's the ability to memorize the numbers and Rainman the entire project out (and your comps) from the second you enter the room giving you the advantage to be working on your offer and counteroffer while others are at home still moving numbers around. 

I like the question, and am very interested to see what others put up!

@Will Barnard

You have described my life almost perfectly and are correct on so many levels! I'm stuck as a laborer for a couple more. 

@Brandon The real question is: Do you want to do it? 

I believe everybody should try things at least once, if they have any interest in taking on the project. Have a backup plan just in case.

Rental properties are perfect for experimenting if the condition allows. Plan a long weekend at the least, take your time. Most mistakes can be cleaned up with an orbital. Dust and wipe down everything. Not certain but you may have a better price from a rental center instead of a retail store for tool rental. 

I think a roller and a pole with a couple cans of all-in-one hardwood floor finish would knock out the finishing in a couple hours but haven't tried that yet. My better half insists the fastest way is to spend two days crawling around the floor with a paint brush. 

The end result is worth the effort. 

Reno the vacants. Non-renew as leases come to term and offer your newly remodeled. 

Contractors cause headaches, renters cause headaches. It's ideal for them not to meet. Residents will assume a personal ownership of their unit and have their own opinions, schedules, cleanliness standards and ideal ease of use of the space they rent each month. Contractors are sporadic, sometimes things don't line up and now you get to explain why the 2nd bathroom they pay for will be out for 6 weeks instead of 3 days. I won't even offer my opinion on the bottom of the barrel Contractors some investors use to make the numbers work...

To keep my thoughts short, there is a lot of reasons renters rent. Not dealing with major remodels and upkeep is high on that list. 

Single-family residence fix & flip investment.

Purchase price: $104,000
Cash invested: $20,000

Purchased as a starter home. Was in fair condition. Dirty, outdated. Original hardwood floors needed to be redone. Bathroom was a complete renovation. Updated kitchen. New roof, furnace, landscaping and finished basement bedroom.

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

Within our price range, opportunity for sweat equity. Cheaper then rent.

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

Open market.

How did you finance this deal?

Conventional

How did you add value to the deal?

Paint, flooring, new bathroom and kitchen. New roof and furnace.

What was the outcome?

Successful sale, and the desire to do another.

Lessons learned? Challenges?

Fix things right the first time, ran into corrections pre sale that could have been avoided. Don't trust a home inspector to catch everything. Don't leave anything in cabinets that can't come out after countertops are installed.