All Forum Posts by: Shawn Jetton

I just finished a successful flip and made out really well. One of the reasons I made out so well was I went to a lot of builders auctions. I was getting band new tubs for $1 (no lie I got 4 deep soaker tubs for $1 for all 4), engineered hardwood floors for $0.90 per linear foot, pallets of lights/ceiling fans for $175.00, 1000 linear foot of base moldings for $100.00. The list goes on and on.

That was great for flipping but tonight I am going to look at my first BRRRR and trying to come up with a rehab plan before buying. My question is, would it be worth it to put in higher end stuff because I can get it cheap or should I stick with more durable stuff like vinyl flooring? I assume by putting in high end finshings means I can ask for more rent but the house I am looking at is a MFH with 3 bed, 1 bath per unit (2 units) which likely means kids. I'm not sure it's worth changing out things like flooring even if I get a good deal on it.

Whats every ones thoughts on it?

Wow I clearly have a lot to learn. My wife and I are checking out our first rental purchase tonight. I just finished a successful flip but after paying all those closing fees I feel rentals is where I want to be. 

Being a "helper" type I would have said it was fine in the OPs situation. But after reading all the replies I see what a mistake that would have been. Maybe a property manager might be better for me.

Thanks everyone for the kind words. In another post I talked about my realtor wanting to list the house higher than I thought it was worth. He wanted to list at 159,900 and I thought 139,900 was a more accurate price. He convinced me to list it for 149,900 and I told him I would give it two weeks at that price. We had a ton of interest in the house. The open house had 16 groups and about 8 private showings come through with only a few negative remarks which I addressed ASAP. But sadly no offers from the open house or private showings.

Two weeks past and I started talking to my realtor about the price when he told me we had a second showing from a buyer who was really interested in it. Sure enough he put in an offer of 135,000, 20% down, conventional loan, no sellers assist. They only thing he wanted was to add a railing on the front porch stairs. We settled at 138,500 + the railing which I felt was a fair price and I was happy with. So the house is under contract at around the price I thought it would sell for. I'm extremely happy with how it all turned out. 

I think my next investment is going to be a rental. I'd like to build up a rental portfolio to about 10 properties over the next 5 to 7 years. I really enjoyed the flip but the selling part is very stressful for me for some reason. I didn't stress nearly as much with the building inspectors as I did having people critique my work.

Patrick Reynolds

I have some all forms of contract work in my younger years plus renovated a few homes I have owned. I'm not a professional but I can do a lot. What I learned from this flip is just because I have the skills to do a job doesn't mean I should do it. There was so much to do on this flip and I handled a good 95% of it myself which made it take way too long. If I had to do it again I would have subbed out a lot more. My profit would have been lower but I would have a lot of my nights and weekends back.

Linda S. we are taking new photos and the front porch is going to get staged Saturday with furniture and plants. Thanks for the advise.

I'm a bit nervous to be honest. I purchased the house for $28,600.00 and have about $30,000.00 into it. If the house sells anywhere close to list price I should make a healthy profit. I still have some last minute things to finish up before Sunday's open house (putting up a PVC fence in the front which should be done today). 

My realtor isn't doing any showings till after the open house but has already had a few calls about it. I've already been looking for my next flip. The wife wants me to take some time off first (working a full time job and flipping eats up a lot of time). Wish me luck and let me know what you think of it.

https://www.realtor.com/realestateandhomes-detail/162-Gouge-St_Wilkes-Barre_PA_18705_M40415-01871?view=qv

@Frank Wong was thinking the same thing. While I don't want to leave any meet on the bone I also don't want the house to sit.

@David Miller very true. This is why I want to start at the right price.

@Patricia Steiner thats what I'm thinking also I want to list at the right price. I think once you start lowering the price people assume you are desperate to sell when in reality you are just adjusting the inflated price to begin with. 

Those are all good comments. I will talk to my realtor tonight and come up with a game plan. 

So I had my realtor over the flip house last night. He had a few suggestions (add crown molding to the dinning and living rooms since I have enough in the garage from an auction). Over all he loved the house and work I did on it. 

The question I have is the price he wants to list for seems a bit high to me. Now he's a friend and also the realtor who got me the house as well as a flipper himself so he's not trying to "buy the listing". He knows I'm going to use him. The comps in the area are really hard to compare as houses range from 290k to 10k (I got mine for $28,600.00 to give you an idea). A house similar in size just around the corner sold in less than 2 months listing for $169,900.00 (sold price hasn't posted yet). It has some advantages and disadvantages over my house. My house is pretty much 100% new but this house has a full unfinished basement that could make it twice the size. I have 3 bed/2 bath the other house is 3 bed/1.5 bath. 

My realtor suggest we list for $159,900.00 but I feel like this might be a about 10k to high. I don't want to scare off buyers by starting super high. I know they say you can always lower the price but not raise it but I also feel if you start too high you really lose out on some buys even after you lower the price. Either way I make a good pay day I just don't want the house to sit too long. I have money tied up in it I would like to invest in my next flip before summer hits.

So what do you guys/gals think? Listen to the realtor as it's his job to know or go with my gut?

I would do it. Save yourself the work and the profit stays about the same.

It should be hard but there are a few things you need to worry about. One is the obvious, can you legally do it.  You need to get down to the courthouse and find out first.

The next issue is going to be lighting in that room behind it. 

The last is the entrance to the house. It's currently set back pretty far and dark. Once you close that part off it's going to be very awkward.