All Forum Posts by: Sherry McQuage

Sounds simple, yet so effective.  I must make time to do this.

@Sean Pan

I'm following this eagerly. I love the idea of adding ADU's. Have not yet found a cost effective way to do this.

@Jacob Albright

Great topic! As a realtor in Moore County, NC, I listed and sold a beautiful restored house that had a detached "small house/mother in law" structure. While I love the idea of a separate "house" (could be used for a home office, mother in law suite, possible rental... check zoning, etc), they're still pretty rare. And rare means hard for appraisers to find comps for.

In the case of the property I listed (and sold), zoning didn't allow for the "small house" to be rented out (like for long or short term rental). As part of the sale, the septic system had to be replaced....the small house was connected to the new septic (it was close enough to the main house that it was feasible).

Since I personally get excited when I see a property that has a house and a small detached house (1 bed, 1 bath), I plan to eventually build or create more properties with this arrangement. Until this set up becomes more common, it's going to be challenging getting a good comp for appraisal purposes.

If this setup interests you, learn all you can...it can become a "niche" that eventually brings you business.

Let me know how it goes with the zoning....

My husband (very conservative) and I (impulsive, sees opportunity everywhere) had the opportunity about 20 years ago to buy a beach house on Ocean Isle Beach, NC, for $150,000.  The house needed some fixing up, we were newly married and didn't have much money, and the lot the house was on was valued (tax value) at $150,000.

I couldn't convince hubby (with facts) that we should buy the property, so we passed.  A week later, someone else bought it...fixed it up...and now has a really nice beach property.

Whenever my husband and I disagree on whether we should buy a property, if appropriate, I remind him that "this could be our beach house".

No worries!  I want to learn more about 1031 exchanges.  If you would share some information about them with me I would be very happy to learn!

Better to hear "bad news" before you feel/experience bad news.  Learning from others without having to make every mistake myself is...well, an advantage to being on Bigger Pockets.

I have looked on Zillow for For Sale By Owners...sometimes, I can talk with the actual owner/seller. Often, the property is already under contract, or sold. Consider Zillow to be just one of the many places to check...on Facebook there's the marketplace where you can search for FSBO's. As more realtors use Facebook marketplace, there's fewer for sale by owners there and many "listed" properties. It's getting harder to find an online source for FSBO's, at least for me. I'm in Carthage, NC.

Keep driving for dollars; that's been where I have found the most "real" FSBO's. Good luck!

Hello Justin,

This flip is currently under contract and will close in November....so I am limited on being able to talk about some of the numbers.  

It was a FSBO I found by driving for dollars. We bought it for $65000 and put additional $65000 into it (materials, a little sub-contracting out). Since my husband did the lion's share of the work (he is a licensed general contractor, plumber, electrician), the actual cost to renovate is low because we didn't "pay" him to do the work. We will net a nice amount, and taxes will cut into that. Since this is our first flip, we are learning how to do things better for the future. Next time, I plan to utilize the 1031 exchange; got to learn what that is first.

Since I am an experienced realtor in Moore County, NC, [Aberdeen, Pinebluff, Jackson Springs, Seven Lakes, West End, Carthage, Cameron, Pinehurst, Whispering Pines, Vass, Lakeview, Tramway/Sanford (Lee County)] we are planning to do more flips...and ease into BRRRRing.

Would love to chat with you and see how we can help each other's business.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $65,000
Cash invested: $110,000

3 bed, 2 bath brick house with large laundry room, 1 acre. Easy access to US Hwy 15-501, US 1, Raleigh, Pinehurst, Fayetteville, NC.

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

Want to build long term financial freedom, and utilize our family's skills.

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

Was a for sale by owner.

How did you finance this deal?

Cash out re-financing of primary residence.

How did you add value to the deal?

Extensive updating, remodeling, new windows, new doors, new paint, new flooring, new HVAC, new septic system, new roof. Husband is licensed general contractor, plumber, electrician.

What was the outcome?

Nearing completion of the renovation...

Lessons learned? Challenges?

We need to hire people to do some of the work, instead of doing 90% of it ourselves.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I am a licensed realtor with Keller Williams Realty, Pinehurst.