All Forum Posts by: Sara C.

@Jeff Copeland good point about townhomes and the HOA being responsible for some of the big stuff. I appreciate your feedback. Thanks! Feeling better about going in without a formal inspection.

Yep @Brian Pulaski exactly. I mean an actual home inspector. I've looked at it as best I can, but I'm no expert in home systems. However, I am getting a deep discount and am basically budgeting for all the big stuff like electrical updates, new HVAC etc. I appreciate everyone's feedback. I do think it would be hard to get an inspector in there with the shape it's in now. 

Would love some advice! I'm about to purchase my second deal to either flip or BRRRR. This is a probate situation and the property, a townhome, is DEEPLY distressed from cat urine and filth.

Do you think an inspection is needed? We are in due diligence now. The reason I'm hesitant is the electricity has been turned off, and the smell of cat urine is so profound I can't imagine an inspector agreeing to spend much time in there. My go-to inspector has already said as much. I'm also budgeting to basically re-do everything.

I'm aware of all the drywall, subfloor replacement and priming needed. My thought was to do the inspection after that first phase so I have a better "punch-list" on the property then. 

Thoughts? I want to make sure I'm approaching this the right way. 

- Sara

@Mindy Jensen I did read the Cat Litter House thread! Crazy stuff right there. And while this townhome has been cleaned out, I think a lot of the reno would be similar. Below are rough numbers. Thoughts? I'm trying to be conservative with them... Good point about a renovation this large without a big return. 

Pee remediation (includes demo, new subfloor, new drywall, primer $30K
Flooring throughout, $10,000
trim - $2000
doors - $3000
paint- $4000
back patio - $2,000
front - curb appeal - $1,000
HVAC- $5000
electrical -$5000
plumbing -$2000
kitchen - $20,000
half bath - $2500
bath 1 -$5000
bath 2 - $5000
hot water heater - $2000
windows -$5000
Details/fixtures/lighting: $5000

TOTAL ESTIMATED RENO: $110,000

Thanks for the feedback! And great idea about an appraisal contingency. This is only my second deal so want to be as conservative as possible.

Wanted to give an update. We are closing on Friday (fingers crossed) with a purchase price of $322k. It definitely took longer than I hoped, but I'm thankful to be selling. Total project took a little over 6 months. I'll post numbers after we close! First deal.... phew!

Hi all! Would love your wisdom on this deal (numbers below). I am considering flipping or BRRRRing through a partnership (so would be splitting the profit). My biggest hesitation is the rehab that needs to take place. It's currently in probate and the daughter of the deceased will be selling. This is a MAJOR cat lady house. The smell is so horrid I could only be in the property for a short time. So we are talking practically a gut job down to new drywall and subflooring. I've never done a reno that large and am a bit nervous about the budget and unknowns. This is a townhome in an excellent class B neighborhood outside of Atlanta. THOUGHTS??! Advice?

3/2 Townhome

PURCHASE PRICE: $100,000

TOTAL ESTIMATED RENO: $110,000

HOLDING COSTS for 6 months including HOA and realtor commissions: $27,000

TOTAL ALL IN: $237,000

ARV: $280,000

TOTAL POTENTIAL PROFIT: $43,000 / 2

Thanks all. Yes I would love to paint the brick but I'm at my max of $40K for improvements at this point. That was definitely on my list though! 

@Angel Gutierrez could you explain a bit more about marketing for sale as a AirBnB? Do you mean marketing it as a short-term rental for investors? 

Really appreciate everyones thoughts! Some have asked why would I rent it out if I went in to flip? If I go lower than $320K I won't making much of a profit. I think it may be smarter long term to change my strategy to BRRRR and aim to sell again in 3-5 years. Not my first choice but I'm not opposed to it either. I have another rental so am experienced as a landlord.

Thank you all for the feedback and positivity. We are going to lower the price and I'm also beginning to prepare for renting it.

@Dave Melton we based our listing price on sold comps, but yeah - 60K is a big price difference for sure. Your comment makes me want to go check it out asap so I will most likely do that today. 

Seriously, thank you all so much for the feedback. For you flippers, how long do you typically leave properties on the market before changing your strategy to BRRR or at least a short term rental?

@Anna Watkins yes the GA dog days are here for sure. Could be a little summer slow down. This house is close to Northlake Mall (sort of) if you know that area :)

and @John Wielgolinski thank you for the advice. It's time to lower the price, I agree. Gonna put it at $324,900 and see if that increases interest. 

Really appreciate everyone's feedback here. I'll keep you updated.