Try a flip (by IMBUBBLESLAROO [WI]) Oct 11, 2017 9:22 AM|
Try a flip (by NE [PA]) Oct 11, 2017 10:14 AM
Try a flip (by NE [PA]) Oct 11, 2017 10:15 AM
Try a flip (by Landlord ofthe Flies [TX]) Oct 11, 2017 10:36 AM
Try a flip (by Ken [NY]) Oct 11, 2017 10:55 AM
Try a flip (by Lynda [TX]) Oct 11, 2017 11:02 AM
Try a flip (by AllyM [NJ]) Oct 11, 2017 11:18 AM
Try a flip (by WMH [NC]) Oct 11, 2017 11:28 AM
Try a flip (by BRAD 20,000 [IN]) Oct 11, 2017 11:41 AM
Try a flip (by NE [PA]) Oct 11, 2017 12:01 PM
Try a flip (by IMBUBBLESLAROO [WI]) Oct 11, 2017 12:24 PM
Try a flip (by NE [PA]) Oct 11, 2017 12:25 PM
Try a flip (by NE [PA]) Oct 11, 2017 12:28 PM
Try a flip (by S i d [MO]) Oct 11, 2017 12:39 PM
Try a flip (by Livethedream [AZ]) Oct 11, 2017 1:52 PM
Try a flip (by cjo'h [CT]) Oct 11, 2017 4:07 PM
Try a flip (by cjo'h [CT]) Oct 11, 2017 4:17 PM
Try a flip (by cjo'h [CT]) Oct 11, 2017 4:33 PM
Try a flip (by cjo'h [CT]) Oct 11, 2017 4:42 PM
Try a flip (by BRAD 20,000 [IN]) Oct 11, 2017 11:29 PM
Try a flip (by BRAD 20,000 [IN]) Oct 11, 2017 11:30 PM
Try a flip (by Robert J [CA]) Oct 12, 2017 1:18 AM
Try a flip (by NE [PA]) Oct 12, 2017 3:29 AM
Try a flip (by J [FL]) Oct 12, 2017 4:55 AM
Try a flip (by James [TX]) Oct 12, 2017 7:52 AM
Try a flip (by NE [PA]) Oct 12, 2017 8:48 AM
Try a flip (by NE [PA]) Oct 12, 2017 11:30 AM
Try a flip (by Chris [CT]) Oct 12, 2017 5:24 PM
Try a flip (by cjo'h [CT]) Oct 13, 2017 9:59 PM
Try a flip (by cjo'h [CT]) Oct 13, 2017 10:12 PM
Try a flip (by IMBUBBLESLAROO [WI]) Posted on: Oct 11, 2017 9:22 AM
State Specific Question About: CLICK TO SELECT STATE
Hubby and I are contemplating a flip. We are both in construction so I am not worried about budget, subs, or materials. We have never done a flip and I want to be as prepared as I can. Typically we purchase, reno and rent. For our rentals we are typically central city with millennials as renters. However, with my research the prices on single family are too high to come out on the deal. So we are looking to a small town about 20-30 min drive from the city that has lower prices.
What do you look for or avoid when choosing a home for a flip? For example one property I am looking at has a sunken living room. This screams 70's to me! It can be fixed but will a prospective home buyer care?
Just looking for any general guidance.
Have at it! Thanks --67.53.xxx.xx
Try a flip (by NE [PA]) Posted on: Oct 11, 2017 10:14 AM
Stick with first time home buyer houses. Stay away from vacation homes, niche homes, and 2nd purchase (upgrade from first) homes.
70's sunken living room would not bother me one bit.
First time home buyers just want a place to kick off their shoes and run around their palace in the buff. It's true.
Plus there's tons of financing options for first timers.
Bread and butter 3/2 ranches are my favorite flip. Garage is a nice perk, not necessary though.
Rough numbers, I shoot for 15-20% equity all done, minimum. If I'm selling for 125-150k, I want to make 25k.
Keep it simple, don't go crazy.
Have fun, I love flips.
Try a flip (by NE [PA]) Posted on: Oct 11, 2017 10:15 AM
Also, sometimes you can get lucky and flip them without doing anything.
I love those. They don't come around often, but they're out there. --174.201.x.xx
Try a flip (by Landlord ofthe Flies [TX]) Posted on: Oct 11, 2017 10:36 AM
Pick a place walking distance from parks or elementary school. In my area, a garage is a must. Access to highways, also look at the neighborhood. Make sure the neighborhood isn't full of rentals. --108.69.xxx.xxx
Try a flip (by Ken [NY]) Posted on: Oct 11, 2017 10:55 AM
Anything will sell and make a profit if you buy it at the right price so I don't care about anything but a low enough price,i do flips without doing any work regularly.In order to find these you need the sellers calling you which means you need to advertise. --72.231.xxx.xxx
Try a flip (by Lynda [TX]) Posted on: Oct 11, 2017 11:02 AM
Whoa! Every bullet NE listed was right on--all in one post!
I would only add, that a lot of money is lost in over-improving the house. You already know what improvements work in a rental, but one tends to think more is necessary for a sale property. Not so, keep it simple, just the basics. No bathroom vessel sinks or farm sinks in the kit. No glassed-in showers or sculptured carpet. No 6 burner stoves or 3 door fridges. Nice USED stainless steel appliances that all match! No changing the floor level. It is what it is.
Same rule of thumb that work for a rental--works for a sale. Remember YOU are not going to live there. Whoever buys it--it will be an upgrade for them.
PS: Sell to someone who gets a bank mortgage and pays you in full at the closing table. Do not do an installment sale with the buyer. --108.87.xx.xxx
Try a flip (by AllyM [NJ]) Posted on: Oct 11, 2017 11:18 AM
No underground oil tanks. No slabs. Make sure the cellar walls are straight. Make sure the ground is flat and the house is on a slight rise with no hills behind or at the bottom of a hill where all the rain water would end up. No river or stream banks. No four lane roads. --73.33.xxx.xxx
Try a flip (by WMH [NC]) Posted on: Oct 11, 2017 11:28 AM
Sunken living room will not trigger 70's responses in young buyers! They weren't BORN in the 70's LOL! They will probably think it's some cool new innovation. --173.22.xx.xx
Try a flip (by BRAD 20,000 [IN]) Posted on: Oct 11, 2017 11:41 AM
Go for it!
Gotta buy it right, not just OK on price.
Connect with a realtor for a discount listing. The fees will eat up a chunk of the profit.
Today's buyers demand absolute perfection. They will run if they see a settling crack in 100 year old house.
Carpet is OUT. Hardwood floors are IN, yes even in cold states. Just ask some Millenials.
Your competition is new construction. Go tour the model homes and chat with the sales people. They will give you TONS of feedback on what today's buyers want. Notice the colors and the finishes.
Go to the open houses to check the competition.
Add some granite if possible, even just an island or bathroom sink. The words GRANITE and HARDWOOD attract prospects.
Full staging works wonders!
Today's buyers have NO IMAGINATION and are totally scared of ANY repair or upgrade.
My trick is to have a licensed home inspector (I ask for the realtor price and have used him many times) do a walk thru while my guy takes notes. We fix everything on the list. He comes back, checks just the items on the list and prints out a report showing the house is "perfect". We lay that report on the table for prospects. They still get their own inspection who finds a few more things but we're not slogging thru negotiations on repairs or trying to convince the buyer to stay in the deal.
Parents kill deals so play up to the parents with a solid, move in ready home.
Make the house look like an IKEA store. They know what buyers want.
White kitchen cabinets, GLASS tile backsplash, brushed silver hardware and lighting, drum style dining room light,
Next, I hire a licensed appraiser to give me a real appraisal. Market studies and comps are good but NEVER trust a realtor 100% to price the home. The appraiser is "god" when it comes to the bank giving your buyer a loan. I can use that appraisal to justify and argue the price with the bank's appraisal. Each time we have done this I made more money than the realtors' price. Example: agent priced it at $147K. Appraisal came in at $174K!!! Listed at $179K because EVERY buyer wants 3% from the seller for closing costs and appliances. Closed at $180K.
Example #2: realtors said $169K. Listed for $185K. A too late prospect commented "Please tell me this did not sell under $195K."
Appliances and sheds (anything removable) do not count toward the appraisal price.
Paint the garage floor. We throw down speckles on grey paint.
Buyers are moved by EMOTION, not facts. Give them emotional reasons to fall in love with the house.
Learn about iGeneration who will some of your first time buyers. This "screen generation" is graduating from college and moving into the workforce. They are moving from upscale dorms and apts and STARTING to buy homes. Again, IKEA is your guide.
Try a flip (by NE [PA]) Posted on: Oct 11, 2017 12:01 PM
I've flipped houses on slabs, with creeks on the property, and with hills on the property.
Not sure about underground tanks. Out of sight, out of mind. If I don't know about it, I don't care if they find it after it sells. --174.201.x.xx
Try a flip (by IMBUBBLESLAROO [WI]) Posted on: Oct 11, 2017 12:24 PM
Does the age of the house matter at all? --67.53.xxx.xx
Try a flip (by NE [PA]) Posted on: Oct 11, 2017 12:25 PM
Try a flip (by NE [PA]) Posted on: Oct 11, 2017 12:28 PM
You just have to keep reminding yourself, "First time homebuyers, first time homebuyers."
You're looking at the house with experienced eyes, which is good for you. Your buyers won't. They will be handheld through the process, because they are clueless. Clueless is good.
Get em, fix the obvious, and then dump them. --174.201.x.xx
Try a flip (by S i d [MO]) Posted on: Oct 11, 2017 12:39 PM
I've only flipped a dozen so I'm not a "pro" flipper like NE or Brad 20K.
I started with a "no work" house just so I could get used to buying with built in equity. Paid $16,500 for it. Spent $2,000 hiring someone to cart off all the trash and clean up a yard full of dead trees and bushes. Made about $8,000 after expenses...nothing amazing but enough to learn I liked the idea.
Avoid obsolete house plans where you have to walk thru a bedroom to get to another bedroom. Unless you can steal it.
3/2/2 SFH's are best. 3/1.5/1 are my minimum criteria.
Older houses CAN work, but rehabbing a 100-year old Victorian on the first round is riskier. Start small, prove the concept, make money...rinse and repeat.
Avoid shake shingle roofs unless you negotiate in the cost of a total tear off including new decking.
# 1 most important thing: your TIME has VALUE. It's one thing to say, "I bought a house, hired out the rehab, and made $25K" vs. "I bought a house, put in 1000 hours over of my own sweat, it took 6 months, and I made $25K."
Try a flip (by Livethedream [AZ]) Posted on: Oct 11, 2017 1:52 PM
On a first flip don't buy a bad location because it is cheap. Busy road, bad area, etc. I look for "landmark" properties. Properties that are in demand, the corner lot, the cul d sac, the view, destination neighborhoods. You pay more but they sell fast for top price.
Buy the worst house in best neighborhood. Reno to price point. But thanks to HGTV a $120,000 starter home needs granite and hard flooring to sell, it seems. Don't use ugly granite because it is cheap.
Details are everything. Know your buyers before you buy. Landscaping adds a lot of value for little cost. I want "wow" factor. "Wow, what a nice yard. Wow look at that kitchen! OMG check the bathroom out! Wow look at that view," "I could live here, honey let's buy it!"
A final thought. Buy and flip tract homes. It is easy to calculate returns. Tracts have high and low price points. Buy at the bottom price, sell just under peak, or even set new upper prices.
Know your demographics. A good school district is usually everything. I live in a baby boomer retirement resort town. Just saw our jr high school got a "D" rating. But here it doesn't matter since everyone is 65. Somewhere else a "D" district would likely impact home values. --47.216.xx.xxx
Try a flip (by cjo'h [CT]) Posted on: Oct 11, 2017 4:07 PM
BUBBLES, Ta an tanum Ata orm Catal. My name is Charlie and I come from Northern Ireland,when I want to catch up on the news here in America I kick into the Belfast telegraph,more accurate and less slanted.we, you and I and your husband are miles ahead of a lot of people here,we know how to do things with the least amount of effort.So no matter what you buy,you can't help but make money,even just buying and holding.If you get something and do the least amount of cosmetic stuff,the better.The first landlord I had,and the only one,was born in the Bronx,sharp lad ,told me "In America,there is nothing you have, that someone won't buy,no matter what it is if you market it properly",^In other words,just like P.T. Barnum in Bridgeport, "There's a sucker born every minute".So even if you don't sell it right away,you can always rent it for a while.So step right in and Do Sey Do. With our knowledge of construction,we can go anywhere,any town, any State, any Country. So slan agut, agus chiefy may hue! Charlie................................................................................t --174.199.xx.xxx
Try a flip (by cjo'h [CT]) Posted on: Oct 11, 2017 4:17 PM
Oh!Bubbles,don't travel too far,gets tiring after a while.and those other drivers,where did they come from,they weren't here the first time we came.Charlie............................................................................ --174.199.xx.xxx
Try a flip (by cjo'h [CT]) Posted on: Oct 11, 2017 4:33 PM
Brad,gotta go into IKEA one of these days,They have one in New Haven, has only been here eight or nine years,better go before they close,everything else is Staples ,Friendly's,who knows what else ? Charlie..... ..... .... ... .. . --174.199.xx.xxx
Try a flip (by cjo'h [CT]) Posted on: Oct 11, 2017 4:42 PM
BUBBLES,That sunken living room,wouldn't do a thing to it except sand and poly,high gloss ,three coats. Charlie...... ..... .... ... .. . ...... ..... .... --174.199.xx.xxx
Try a flip (by BRAD 20,000 [IN]) Posted on: Oct 11, 2017 11:29 PM
Another thought inspired by my friends here:
Look for a NORMAL house in a NORMAL neighborhood that ust needs updating.
Newer construction, not a restoration project. We've done several that were simply paint, flooring, new vanities, new kitchen. Can be done in days.
Look in neighborhoods where house hunters cruise and dream about living there.
Try a flip (by BRAD 20,000 [IN]) Posted on: Oct 11, 2017 11:30 PM
That part about running around the palace naked...are you trying to tell us something about you???
Try a flip (by Robert J [CA]) Posted on: Oct 12, 2017 1:18 AM
The son of a good friend, wanted to do a flip with his father. I myself have owned income property for 40 years and I'm also a licensed contractor, so they asked some advice from me.
The important thing was to lock up the property and have a due diligence period to inspect the property. I explained that we needed between 10 and 15 days to check everything out and make sure there were no hidden issues.
The next thing I know is they are going to close escrow in 4 or 5 hours, can I look at the property now? Of course not! Lab test have a 24 to 48 hour turn-a-round. Sample collection takes another day.
So after they closed escrow I did a home inspection and collected samples. They wanted to start working on the home immediately but I convinced them to wait until I could give them the go ahead.
Again they didn't listed and demo'ed the kitchen, master bedroom and bathroom. My tests came back, asbestos in the plaster, heating duct insulation and cottage cheese ceiling. Lead paint everywhere especially the wood trim and window frames. And some mold in a wall where there is a small pin hole water leak in the galvanized hot water pipes.
They had already contaminated the entire house. Ran the A/c and now got asbestos in the ducting.
Combined they owned 5 homes in their live but have never remodeled a property themselves and didn't know about the hazards of construction and obtaining permits.
So they had to hire contractors to finish the work and lost money on the flip, around 200K. --47.156.xx.xx
Try a flip (by NE [PA]) Posted on: Oct 12, 2017 3:29 AM
No Brad, I'm just keeping it clean for the forum! --50.32.xxx.x
Try a flip (by J [FL]) Posted on: Oct 12, 2017 4:55 AM
Do you all use a realtor when it's time to sell the flip, or market it yourself to buyers? --72.188.xxx.xxx
Try a flip (by James [TX]) Posted on: Oct 12, 2017 7:52 AM
keep in mind with a flip those pesky short term capital gains taxes that will scalp you 30% off the top if you hold for less than a year. Another thing that I never see on the flipper shows are the soft costs like utilities, insurance, property taxes, yard maintenance, maid service, commissions, and closing costs to sell. They don't always sell in one day like on TV. --97.99.xxx.xxx
Try a flip (by NE [PA]) Posted on: Oct 12, 2017 8:48 AM
Regarding the Carrying costs, factor those into your rehab. At least a years worth. You may sell it in a week, but you might sit for 18 months too. --174.201.xx.xx
Try a flip (by NE [PA]) Posted on: Oct 12, 2017 11:30 AM
Also regarding the capital gains taxes, I've always looked at it like this, "Who cares?" If I gross 35k and net 25k after capital gains as a result of a good flip that sold quickly and was rehabbed smoothly, I'm ahead of the game. That's 25k more than I had before.
I've heard a lot of people say, "Yeah, I've though about flipping a few houses but man, I don't want to pay the government all that money." Whatever. I'll flip them then, they can sit around and worry. --50.32.xxx.x
Try a flip (by Chris [CT]) Posted on: Oct 12, 2017 5:24 PM
Brad pretty much nailed it.
Buyers have zero imagination and any kind of repair scares the crap out of them. Make the house look like an Ikea store, that's about right.
HGTV ruined the industry, people have totally unrealistic expectations. --24.45.xxx.xx
Try a flip (by cjo'h [CT]) Posted on: Oct 13, 2017 9:59 PM
Bubbles, that advice from MissAlly about the oil Tanks is good. About the surrounding hills don't know,except maybe afraid the Indians will be able to get a stronghold to launch an attack,They've been quiet around Connecticut lately except around the eastern part of the State,particularly around Ledyard area,they're tricky.Charlie......................................................................y --174.199.xx.xxx
Try a flip (by cjo'h [CT]) Posted on: Oct 13, 2017 10:12 PM
Don't know what Brad considers normal ? Now NE in Pennsylvania could get Slivers especially sliding down a sheet of plyscore into the basement,it happens you know.Charlie..... ..... .... ... .. . --174.199.xx.xxx