All Forum Posts by: Tom Palmieri

I have an offer in on a home in Fairview NC. It looks like it will be accepted this week. It has a foundation issue I plan on repairing prior to releasing the property. The remainder of the project will consist of standard bath and kitchen modernization and paint. Although, if it is to be a rental, kitchen and baths are fine. 

ARV is 500k. If kitchen and baths are remodeled I would budget 30-40k. I'm considering offers after the foundation repair if above 375k.

Home is two level, 3 bath 2,000sf.

If interested PM me for more details.

Hey Jon,

I been a contractor for too many years to remember. I'm used to square ft numbers from S Florida and this is a new market for me. What I am finding here is you can build new for around 140 psf from the green plate up. If you're doing it for yourself, standard finishes. If I were charging a client I would come in about 180-190 psf. If I'm building new construction comparable to the finishes I do in Fl, which swing more to the higher end, I can build here for 400 psf what it costs me 600+ psf there.

I think doing a standard remodel, interior finishes only, here in Asheville, new kitchens and baths, paint flooring better than standard, I will budget 75.00 psf to gauge my ARV. Structural, foundation, roofing and landscaping would be stand alone numbers as those may or may not need work.

I'm a builder from S. Fl and new to investing in Asheville NC. I'm wondering what the square ft price for interior renovations are for this area. In South Fl new construction under 400 a square ft doesn't get you much. 75 a sf interior renovations with standard finishes is to be expected on full rehab flips. How does this compare to Asheville?

Advice Appreciated

I am seeking expertise with bidding on HUD homes. I am following a few homes in the Asheville area and am wondering how to first bid the property IE: Per tax assessment? ARV with 70% rule? Go to short sale numbers?

Or, wait until the first bid is placed and up bid it by the 5%?

Any advice will be most appreciated.

Tom P-

Greg,

I appreciate your input. Correct, it's not HUD but FHA mortgages. Although I am not in that market, I am aware of many people who have not paid their mortgage and these too are a concern. I don't have enough faith in the government bailing out homeowners as they didn't in the 2008 crash where I lost just about everything. Maybe now I'm gun shy but, the housing atmosphere now is reminiscent of 2008. (to me)

Thanks again for your input

Calvin,

I am a contractor flipper and have been at it for ten years. My profits were very small in the beginning (only 10k on my first flip) but I just kept rolling it into the next flip because my job paid my bills. I now have two homes worth over a million each and am now, for the first time considering doing multiple flips at once. I don't believe in risk vs reward. There is no reward, just risk. Reward comes after long days and sleepless nights. If you are like me, one job gone wrong could have broke me. 

So, with that said, every project I took on I did myself. Including the one I have now listed at 1295000.00 in Asheville. If you are a contractor, you now it only takes one sub to ruin a profit. My advise would be to keep your day job, work your flips, get no sleep, get paid. 

Best of luck to You

Just my thoughts but, I believe the 3rd and 4th quarters this year we will see a flood of foreclosures when the restrictions are lifted. Many people are too far behind on their mortgages now to save themselves. This will create a flood in the market and the homes in the 200 to 500k range will be plentiful. I'm looking into fix and flip multifamily. I think, if I am correct, their will be plenty of qualified renters with great jobs who simply cannot qualify for another loan if they were foreclosed on. If i can fix a multifamily, get it fully rented, I can then either flip or hold for greater profit. 

Ultimately, I will diversify, Small holdings for fix and flip, small investment in multifamily, and one or two above the 800k mark where the economy doesn't matter as much.

Best of luck to you

I'm looking for straight forward 70% rule homes here in Asheville and the pickings are slim. I'm also concerned about the foreclosures coming up in the 3rd to 4th quarters when the restrictions are lifted. We buy at the highest end of the market now. I don't want to be holding any flips in the 200 to 500k range come September. Maybe that might be too late too. I'm thinking fix and flip quadplexes. If I can't sell they will be easy to rent.

Your thoughts?

PS. Or stay in the high end market 800k and above where the economy doesn't matter.

Does anyone have any analytics on the future foreclosure market? I was speaking to a HUD representative and he informed me HUD is sitting on thousands of foreclosures. They intend to start releasing them in the 3rd of 4th quarter this year. My concern is what will happen to those of us who are purchasing homes in this hot market? We are all paying top dollar even with off market homes. Cost of supplies have risen like crazy, cost of the homes are no where good deals and everything is a risk.

My concern is that not only HUD homes will flood the market but also the lower to middle class homes will also take a hit, similar to the 2008 crash and if our timing is off we will get stuck with homes that are overpriced in the future foreclosed market.

How do you guard against this? Stick to high end over 800k homes, go into rental homes? Fix and flip quadplexes? I'd love to have some knowledgeable input and discussion.

Thanks