All Forum Posts by: Trudy Hoekstra

Thanks, Derek! That's very interesting, granite countertops in war zones. My mentor here also puts granite in everything because she says it's so cheap. It's great to know that someone else has been so successful without sticking strictly to the nice areas.

Aly, excellent point, yah, that's my biggest worry, about having to evict a person I thought I could trust. I already had to do that once, at a duplex I had. I guess in general I am too trusting of riffraff and I need to get that through my head.

Thanks, J! That sounds like a great alternative to an eviction, I'll try it.

Hi Aly,
I can pay cash because I'm looking at properties whose cost + repairs are very small. It's not the greatest neighborhoods, but my home town wasn't well off, either, so it feels like my peeps. I've heard opinions from two investors that rehab properties all over the US, and one said "I'm not going to live there, so I don't care what it's like, and the money that comes from the houses spends the same," and one said he's had some severe problem incidents investing in bad areas and it also leads to much lower quality tenants.

I'd be interested in hearing other experiences with rehabbing in bad areas. I was thinking I'd have someone I trust stay in the house during the rehab, to "guard" the place. Assuming the trustworthy individual wouldn't have to be evicted, is that a stupid idea? The last house I did I got so fed up with people stealing stuff that I often slept there myself.

Justin: great idea, thanks! She seemed to hold her last one for about 3 weeks before escrow opened, which is much less than average for that area. I pay cash for everything, so my holding costs are really just lost opportunity. I do think the additional sales price she gets is more than the additional cost. You are right, I guess that's what it all comes down to.

Harrison: thanks! It's great to hear from someone that does this same thing in lower/median priced areas like she works in. I didn't know anyone else who rehabbed something higher than the norm. You're right, it's all about budget, whether the additional selling price justifies the additional cost, and in this case I think it does. Thanks!

I'm working with a semi-experienced flipper (3 years of about 4 houses a year) who is giving me advice (my first two flips flopped). She typically does top-of-the-line for the neighborhood and then prices at median price. She says this sells fast. For instance, if 2 out of 5 houses in the area have dual pane windows, she puts in retrofit dual pane windows. If some but not most houses use granite countertops, she uses granite. If most places have tile tub surrounds, she'll do tile with some kind of border/accent/design. This goes against the advice I've read in books saying that a rehabber should stick with what the average house has in the area.

What level finishes do you use? If 2/5 of houses in the area have dual pane windows, would you replace unbroken single pane windows?

Thanks for your advice! I overdid my last house and I'm so afraid she's telling me to make the same mistake again, but I know I need to trust my mentors.

Hi Munir! Welcome to the site!

I'm from N California, too. I totally feel your pain about the housing prices in CA.

Good luck!

Thanks for a terrific post! I am pretty new to this game, and today as I was talking on the phone I felt like such a lying hypocrite by acting all confident, pretending this wasn't just my fourth house. I guess I shouldn't worry so much about faking it.

Thanks for asking this question, Ivan! I really enjoyed reading the replies. I know how you feel: I spend time once a week with a person twice my age and ten times my intelligence and all he can ask is how ethically I can justify ripping people off like that.

But let me tell you this: two years ago I had a half-remodeled duplex that I would have paid someone thousands of dollars to take off my hands. My experience with it was so psychologically painful that I didn't care about the money. For me, it's a balance of what's more important in life to me: my sanity or a building. If someone had helped me out of that situation, I would never have changed my mind about selling to them, no matter how much they made off it.

Hi Tony! Welcome! I grew up in New York.

I also found college fun because it was a challenge. Then work was a challenge. Now real estate is my exciting challenge. I bet you'll find it that way, too, at least until we get to be as experienced as some of the people around here.

What are you studying in college?

I'd do more of the volunteer work that I like doing. I really believe I've found my purpose in life, and I want to pursue that full time.

I calculate that I only need $1.5M more to retire. No problem!

I joined to learn from the articles and forums. I used to read about five RE books a week, but now I only read about 2 and BP because there's always brand new, up-to-date info here.

That's why I joined, but my favorite part of this board now is the people. It's incredible to be able to network with people I want to be when I grow up! One really great guy PM'ed me when I first got on and now I incessantly ask him questions and he never tires of them. That's worth way more than any guru seminar.