All Forum Posts by: Roy H.

Just curious what insurance is needed for a rehab/flip? I'm not looking to hold and rent them out.

On my first flip, I don't exactly remember for sure what insurance we received. I know we paid quarterly and it was about $320 each quarter.

Purchase price of the property was about $60K with an approximate value of $115K after rehab.

I'm out looking for #2 now and would like to see what options there are out there. $320 seemed steep, but I trusted my insurance carrier that this was the best option.

Thanks in advance!

That's a good though... that never crossed my mind. I will look in to it and see what i can come up with. Thanks for the idea.

I went through a house about 6 weeks ago that was bank owned and listed at $75k.... needed some work, but could be rehabbed and sold for about a conservative $5k-10k profit. This was going to be my first investment property, so naturally, I was very cautious. I went through my numbers about a hundred times, went to the local home improvements stores and priced things out... I ended up dragging my feet. We went to write the offer for $63k, and the bank had already accepted someone else's offer which was 'substantially higher than the list price.' So I was bummed....

Fast forward to last week... I am checking through the MLS system and the house is back on the market for $75k... it turns out, the financing fell through n the other deal and it was available again. That day, we put in an offer for $64,500... we just found out today they they straight out accepted the offer and we close in 26 days.

I am so pumped up... while this is a big risk and undertaking, I know there is $$ to be made here. I wanted to start off as safe as I could, while still making a decent return. And whatever $$ we make off of this one, I will bank and use towards the next one. I am hoping to do 2 rehabs a year, eventually paying cash for them... and then slowly get in to rentals.

Anyway, before I get too excited, I am going to schedule the house for an inspection... just to make sure that there are no surprises that we don't know about.

Now I just have to start setting up a schedule of what needs to be done, in what order, and by when... and sticking to my budget. I overshot all of my estimates just to cover my butt, just in case.

I've learned a TON from this website and just wanted to thank you all again!

Any advice?!?!?

Thanks guys. Walking through Home Depot, Lowe's, and Menards I pretty much made sure I overshot everything on my estimates to be safe. For example, if the kitchen sink was $100... I budgeted it for $150, if the carpet was $0.75 per SF, I budgeted for $1. That way, I was covered if anything went over, and if nothing too unexpected came up, I would be under budget and have more $ in the end :o)

I'm definitely hoping my real estate appraising comes in handy. I don't see why it won't. There are a couple areas in the area that I haven't worked specifically yet, in terms of appraising... so it takes me a little more time to get my range of where I could sell the house for once fixed up. But generally, I can take a look at an area and get within 5k of what the houses in that area generally sell for.

Obviously, on the first one, I am going to be extremely cautious and be as safe as I can. I got caught dragging my feet on the first house I should have bought, and learned from that. Next time, I won't spend a couple nights at Home Depot pricing things out. I can get an accurate # within a few minutes because now I know what types of costs I am looking at for kitchen replacements, light fixtures, doors, etc. That way, once a good property comes around, I can jump on it. The good thing is, I know a lot of people in the construction/improvement business. And hope to build relationships with others in the area. Because as long as the first one goes well, I am only going to look to expand and continue to do business with the people I trust.

I'm looking to get in, get my work done, and price it to sell and get out. The longer I am sitting on that house, the more I am losing out on it. Once I set a price on the house, I will set a number in my head of what I will accept, once an offer comes in at or above that number, I will have to take it.

I have two more classes I need to take, and then pass the state test, in order to obtain my real estate license. That way I have my hands in 3 different aspects... appraising, real estate sales, and flipping homes.

Once I get a nice cushion, I am definitely going to get in to some rentals. And continue to go from there. This site is definitely a great resource for a TON of information and a bunch of knowledgeable people! Thanks again for the nice welcome.

Just wanted to drop in and say hi. I'm a recent college grad and currently doing real estate appraisals and beginning to dabble in investing. I've been looking on the site the last couple of weeks and have picked up a lot of valuable info. There are a ton of knowledgable people on here!

Was getting ready to put an offer in this morning, called to get it set up and the ball rolling... and there was an offer already accepted on it. :protest:

I went to walk through it last week and was very cautious with my numbers, etc. and making sure that this was something that I wanted to do. I spent a couple nights at the local home improvements stores pricing items out, etc. Took another walk through on Saturday and decided it was... then got the news this morning.

So, on to the next one. We'll see what happens!!