All Forum Posts by: Mike V.

I currently use a HELOC on my primary for down payments on flips. 2.99% rate with interest only payments. I've used this HELOC for the past 5 years although I'm using it less and less by substituting the cash I have made from the previous flips.

Has it happened before - probably, does it happen so much to be overly concerned - nah. You could always pay to have the lines scoped with a camera. Around here you can get a camera inspection of all waste lines all the way to the main at the street for $150.

I always refinish the hardwood if its there. I pay $1.90/sq ft for three sandings and two layers of poly (minor repairs included). I've paid as low as $1.50 but the result showed it. That price will also get a decent carpet that will need to be replaced in a 4 or 5 years. Hardwood holds up so much better and allows the buyer/ tenant the option of putting down a rug if they want the warmth.

I pay my realtor with loyalty, he gets all my listings once I put them on the market and also my personal moves as well as 3 others that I have referred to him including one from Will himself. Also at least here in MO realtors get a minimum so even when I buy houses for 20-30K I think the buyers agent gets $1500.

Brian,
If I am reading your question correctly you are interested in knowing if anyone is switching to flipping in the 250-500K range verses the typical 75-250K range - not when to use hardwood and granite. By the way those are the ranges I would use in my area not necessarily what someone on either coasts may call high end.
I am trying to move more high end (my last flip sold for 236K compared to my average sale price of around 120K) but am running into supply problems. It seems that buyers in the higher end usually have the means to purchase and fund the rehabs (or tear down/rebuild) themselves and are willing to pay significantly more than me due to 1. them not knowing what it really costs and 2. not factoring in things like holding cost and profit.
I like the higher end because my profit is based on percentages of ARV, the higher the ARV the more profit. The higher ARV also helps absorb any unexpected issues Replacing a main waste stack on this 236K flip cost me exactly what it did on a 89K flip I did last year.
I should mention that I have not abandoned the lower price point homes, just have expanded my price point higher.

Yeah, I just bid for the 3rd time on a property on gohoming. So far they are only countering $500 below list. What I don't like is that they post my bid, to me that's shopping an offer around. I guess its allowed since they aren't realtors and it is an "auction".

Just bought one in October. Less than 45 days to close but it was from a local credit union. I had all but given up since I hadn't closed a short sale in over 3 years but glad I kept trying. The others are right it doesn't take that much work to put in the offer and the competition is becoming more scarce due to all the bad experiences.

I always include all kitchen appliances in stainless for all the reasons mentioned above. We spend a fair amount of money and time fully staging each house and consider this essential to making a home look complete.

I agree with Curt, not a bad rate, don't risk losing the deal by starting over. You will be hard pressed to find a big bank to loan to your llc - especially with no track record.

Hey Jim,
My first rental was the house next door to me. I rented that out for 3 years to two different tenants and never had any issues. Since it was so convenient for me I offered to mow the grass - the tenants were grateful (med school students) and I got to keep a close eye on my investment.