All Forum Posts by: Shannon S.

@Basit Siddiqi- Thanks for the reply.  Tried several of these methods already, but hadn't really considered the out of state option.  Appreciate the insight, and agree.  My current CPA and I aren't fitting for exactly that reason- I don't think she understands the investor mind set.   

@Kyle Burnett @Craig H.- thanks for the referral! I will check him out.

Hey there, 

If anyone knows of a good CPA who is creative, responsive, and investor-friendly, I'd a love a referral.  Greater Cinci area.  Thanks in advance!

Hi Alex

I have two rules: 1. Do it by the book, so if the city requires a permit, get a permit. You've already pulled the building permit and generally all you have to do is tell them what you're doing with that permit. The fact that they have specific forms for specific things indicates that they want to know when you're doing those specific things.   :) If you have pulled permits, you're going to have to have inspections anyway. And there is nothing worse than having an inspector come in and tell you that you weren't authorized to do something that you did, and you now need to remove it and start again. They can do that.  

My second rule is never consult with a contractor on my business. I consult with contractors on the actual things that they are repairing, but not how to do business or what the best course of action is with legal matters. Many contractors don't want to pull permits,  because it also means they have to get inspections and can't cut corners. A contractor who has no issue with pulling a permit is usually a good contractor. And, I would be sure to put in my scope of work on my contract that a condition of getting paid is that the permit inspection is passed. And point it out to them when they sign.

Good luck to you!

Just my 2cents. It's completely true that some agents simply see $ and easy paycheck. Clearly, that's not who you want. But a good Realtor doesn't approach it that way. A good Realtor provides a comprehensive analysis, advice on making the home market ready, guidance through the offer and negotiation process, a ton of referrals for various industry professionals in the event they are needed, a marketing network that is far beyond "it's on the MLS" (i.e syndication and social media), and the backing of a brokerage that ensures every part of the transaction is handled not only within the law, but in a way that protects you. I'm sure someone will want to debate this, but there have been numerous, fully vetted studies that show that FSBO's leave substantial money on the table, by pricing their home wrong, making a negotiation mistake, a contractual mistake, or a hundred plus other mistakes that are easy to make. It's not rocket science, but there are LOTS of variables. A good Realtor knows what those are and how to handle them going in the door. What's your time worth, by the way? The average real estate transaction requires a pretty big chunk of time for me to handle, and I have an administrative team, automated systems and templates, and experience. That's not even including showings and open houses. Again - just my 2cents. I understand that there many crappy agents out there, but there are many who will not only sell your house, but get you the highest $, and make it as easy for you as possible.

@Juan Rubio There are some good answers on this post, and some not so good. Most importantly, the point has been made, why are you not using an agent?  Ask people you know (and respect the judgement of) for a referral.  It costs you nothing, unless there is some special term attached to the listing.  Even if there was a cost, it may be worth it to have some guidance. 

Second, tax assessment values really have nothing to do with market value. Zillow, Trulia, Redfin, etc are somewhat helpful, but are no match for an experienced Realtor's market analysis.   Those sites use pretty sophisticated technology that can be pretty accurate- especially in areas where there is a very consistent turnover of similar homes (such as a stable suburban market).  Where those services falter is when it's an area with little data, for example a neighborhood that's so popular and stable people rarely sell, or a neighborhood where there is a growth spurt and some houses are rundown while others have been renovated and are on the market fully move-in ready. Or where there has been a slow turnover to investment/rental properties.  These are examples of when a human with some understanding of the real estate market, neighborhood, and current trends needs to interpret the data.

Last, and very important- unless you are in a rural area, a three mile radius is far too large.  A good rule of thumb for any populated area is 1/2 mile, up to a mile if there aren't a lot of transactions.  Also, a comp report is most valid within past 6 months to one year time frame, and the one year window would again be if there are fewer transactions.   If data is lacking, a competent Realtor can help you look at comps in similar areas to come up with a good picture of value. 

 I would clear a morning if I were you, and go down there in person.  Email and phone calls are not the most effective means of dealing with inspectors. 

@Tae C. Had same problem on the last property I flipped. Purchased from VA, had full title work and everything done, and didn't find out about any issues until after sale. It was actually condemned, but that was based on health code violations and fire hazard- all because the owner (deceased) had been a hoarder and had tons of cats living there. That had all been really removed by the VA cleanout crew. It was still nasty, but not full to the brim and there were no (live) cats anymore. Anyway, the solution was fairly simple- as I pull permits anyway- went down to the building department, told them what was going on, what we were doing, etc. Inspector came out, me and contractor walked the property, he told us what he wanted (I took detailed notes, because sometimes inspectors "forget" what they tell you in between walk through and final, LOL). After we were done with rehab and had plumbing/electrical permits inspected and approved, the building, health and fire inspectors came out (all at same time) and cleared our condemned status/issue certs of occupancy. Now, this was a smaller city building dept- and I have dealt with bigger (Cincinnati), so it will be a little more cumbersome if its a bigger city. But the bottom line is the same. Just be upfront, do what they tell you, and it should be fine. It's going to cost you a bit, but you don't want those violations popping up later when you are under contract with a buyer.

Agree with @Doug W.  Don't choose based on what you like, because you're not the buyer.  Look at your competition and current trends on HGTV, Pinterest, etc.  If you are producing a move-in ready home, those buyers want current, up to date finishes that are neutral.   Finish material quality is important, if you do better than the other guy your buyers will notice.  Also, it starts with good design in the first place- before you put your finishes on- what are you doing to make the space stand apart?  Making a kitchen or bath layout more functional or flow better, adding storage, etc.- that's what make a home sell fast- you want your buyer to walk in and say "OK, this is it".  Assuming your Realtor priced it right, you will sell much faster than the competition if you think about these things.  And also like Doug W, in my area it's white shaker/grey walls/hardwood floors.  For ceramic tile, large format is in, 12x24 (which is great because it's cheap and quick to install), subway tile backsplash.  I also think farmhouse style adds a nice touch if you have the right demographic (millenial-Gen Xers).  

So, maybe your materials don't cost more, but maybe you just design and style the house right- that can give you an edge on the competition. As an example, I recently used butcher block counters to save money on the kitchen budget and the house sold in one day.  Simple white shaker cabs, pretty glass subway tile, all very inexpensive but I staged it farmhouse style and had 4 offers first day out.   My flip before that was also staged and designed a bit "farmhouse" and I sold that in 5 days, with 6 offers.  Went under contract above list with two backup offers.  I think it's at least partly because of design and presentation.   Pics of both kitchens below.   Good luck!

@Jason Bott that is good to know, thanks!

@Nick Ye @Anu G. I use RealProtect. They have a policy that covers the property a certain period of time as not vacant if it's under rehab, because any home that is being rehabbed is not the same as vacant. After the time period elapses- I think it's 60-90 days maybe- it goes to vacant and they also insure for the ARV value not just the price you paid. Although, my guess is if you had a total loss they'd want some proof the project was finished/market ready and or proof of the improvements. Last year I had two properties insured at same time, both had declared values of over $200k and I think cost was around $210 a month for both. They have various deductible levels as well. And yes, always also have liability insurance/builders risk.