First flip
Click here for Top Ten Discussions. CLICK HERE for Q & A Homepage
Receive Free Rental Owner Updates Email:  
MrLandlord Q & A
     
     
First flip (by John2 [MI]) Mar 11, 2018 4:38 AM
       First flip (by John2 [MI]) Mar 11, 2018 4:46 AM
       First flip (by razorback_tim [AR]) Mar 11, 2018 5:34 AM
       First flip (by WMH [NC]) Mar 11, 2018 5:44 AM
       First flip (by NE [PA]) Mar 11, 2018 5:47 AM
       First flip (by elliot [RI]) Mar 11, 2018 6:05 AM
       First flip (by John2 [MI]) Mar 11, 2018 6:17 AM
       First flip (by Richard [MI]) Mar 11, 2018 6:46 AM
       First flip (by Ken [NY]) Mar 11, 2018 7:01 AM
       First flip (by John2 [MI]) Mar 11, 2018 7:23 AM
       First flip (by NE [PA]) Mar 11, 2018 7:40 AM
       First flip (by Tom [FL]) Mar 11, 2018 8:12 AM
       First flip (by Tom [FL]) Mar 11, 2018 8:12 AM
       First flip (by NE [PA]) Mar 11, 2018 8:16 AM
       First flip (by John2 [MI]) Mar 11, 2018 8:26 AM
       First flip (by Vee [OH]) Mar 11, 2018 10:03 AM


First flip (by John2 [MI]) Posted on: Mar 11, 2018 4:38 AM
Message:

We got into this biz about 7 years ago when we bought our first foreclosure from B&A. We have since been buy & hold. We were contacted by a realtor who has a listing that the owners passed away, now family owns it. 2bd 1 ba with 3 buildable lots. The surrounding neighbors have tried to buy the lots that connect to their properties. But family wants to sell as package deal. Each lot is approx. 100x200. The we could buy the whole thing for 80k. My thoughts are to build attached 2 car garage on existing house and put modular homes on other 3 lots....So my question for those of you who have experience in this- how do I make sure that I can build (modular home) on each lot? Would I need this in writing (township) before I buy it? Anything else I should consider?

--24.231.xxx.xx




First flip (by John2 [MI]) Posted on: Mar 11, 2018 4:46 AM
Message:

Sorry forgot to add that we would be fixing the existing house up and adding attached 2 car garage then selling it .... before putting modular homes the other 3 lots --24.231.xxx.xx




First flip (by razorback_tim [AR]) Posted on: Mar 11, 2018 5:34 AM
Message:

Are there other modular homes in the area? That might give you a clue of whether or not they are allowed.

I would call the building division of the town and ask what rules they have if any regarding modular homes. Iíd try not to get into specifics if you can keep from it. People like to talk and it sounds like you donít want the neighbors to get wind of what youíre doing. --70.178.x.xx




First flip (by WMH [NC]) Posted on: Mar 11, 2018 5:44 AM
Message:

Call the town or county and talk to them. We have tons of properties around here that say extra lots are included...but until you've done your due diligence you don't know if they are actually buildable according to town code.

In fact, we bought one once (luckily included as part of an entire purchase) and did all the things prior to closing: turned in surveys, pulled septic permit, got other buy-offs from the county but when the time came to get the actual permit (we were moving a house to the lot) the county found that due to a paperwork error back in the 1970's that the lot was NOT a legal building lot!

That was an expensive mistake...we turned it into a parking lot and it worked but still. --50.82.xxx.xx




First flip (by NE [PA]) Posted on: Mar 11, 2018 5:47 AM
Message:

I don't know why a modular WOULDN'T be allowed. However, you're building spec, not flipping. Big difference, especially as far as permitting, codes and inspections are considered.

To be honest, that's a big undertaking for the first one. Not impossible, but you're going to learn a lot. --50.32.xxx.xxx




First flip (by elliot [RI]) Posted on: Mar 11, 2018 6:05 AM
Message:

If they are buildable lots, they must be worth the $$, since they are buildable.

$80K is nothing. Even if the whole thing flops, which it won't, you are paying a small fee to learn.. --71.232.xxx.xxx




First flip (by John2 [MI]) Posted on: Mar 11, 2018 6:17 AM
Message:

Thank you for the words of encouragement! Iím excited for this project! Iím hoping this will re inspire keep me moving towards freedom! --24.231.xxx.xx




First flip (by Richard [MI]) Posted on: Mar 11, 2018 6:46 AM
Message:

Make your offer contingent on permits being issued and full permission from all authorities having jurisdiction over the property.

Then if something comes up at the last minute, you can cancel, renegotiate, or possibly get a variance that would allow you to do the project.

Just a question: If you got the whole thing and sold the lots to the neighbors, then fixed and sold the house, would you still come out ahead? --96.94.xxx.xx




First flip (by Ken [NY]) Posted on: Mar 11, 2018 7:01 AM
Message:

I will suggest you look into buying,seperating the lots if they are not already and selling the lots to the neighbors,sometimes there is as much profit doing that as taking the risk of actually putting a modular on the lot and selling off a home. --72.231.xxx.xxx




First flip (by John2 [MI]) Posted on: Mar 11, 2018 7:23 AM
Message:

Richard- great idea on contingency....yes, I would come out ahead even if I sold lots to neighbors and rented the house..... Itís not in my niche market for rentals... I like ďcityĒ tentals

Ken- Iím not sure why current owners would not sell off lots to neighbors... the realtor said they want to sell as package deal.... I think they are afraid of getting stuck with house.... the house needs work but if your not into fixing houses it seem overwhelming :) --174.230.x.xxx




First flip (by NE [PA]) Posted on: Mar 11, 2018 7:40 AM
Message:

John2, the current owners and neighbors could be fighting, who knows. --50.32.xxx.xxx




First flip (by Tom [FL]) Posted on: Mar 11, 2018 8:12 AM
Message:

Check subdivision requirements/codes??? Sometimes DO NOT believe the realtors statement, they can and do say anything you want to hear. PLUS IF its the listing agent they work for the seller. UNLESS you signed a buyer agent agreement then they could work for both. YEAH RIGHT!!!

Of Course be careful what you do say to the realtor as well. That includes your own realtor.

Make certain the lots can be subdivided, however you get a verbal then have a survey, subdivision plan and other costs then you go to the building dept for approval and they say NO. What do you have then???

Also do they permit building on the lot? Does a 100 x 200 lot permit an on lot septic? AND will the perc test pass??? IF public sewage are there taps available to purchase for each of the lots. This being said IF a neighbor buys the lot then it may not matter. However they may need to make their existing and new lot one lot due to not being a buildable lot.

You have several factors to check on with regard to the property. Maybe make an offer of $60K and see what happens since the house needs work and the owners will not talk to neighbors. Which DOES NOT make sense, get the most money you can without the least amount of added costs and the time it takes to close. Subdivisions take time to happen and there are NO guarantees. The money at this point is in the house thats maybe all it worth in the end in the present condition.

PLUS if more than one person is involved in the inheritance they want their money and do not want to wait for subdivision. Heirs see dollars immediately not waiting for their money. Low ball the offer money talks BS walks...

PLUS the heirs would have to wait for the subdivision to take place. Yes there could be an issue with the neighbors as well but again its about the bottomline possible more MONEY!!!

--99.56.xx.xx




First flip (by Tom [FL]) Posted on: Mar 11, 2018 8:12 AM
Message:

Check subdivision requirements/codes??? Sometimes DO NOT believe the realtors statement, they can and do say anything you want to hear. PLUS IF its the listing agent they work for the seller. UNLESS you signed a buyer agent agreement then they could work for both. YEAH RIGHT!!!

Of Course be careful what you do say to the realtor as well. That includes your own realtor.

Make certain the lots can be subdivided, however you get a verbal then have a survey, subdivision plan and other costs then you go to the building dept for approval and they say NO. What do you have then???

Also do they permit building on the lot? Does a 100 x 200 lot permit an on lot septic? AND will the perc test pass??? IF public sewage are there taps available to purchase for each of the lots. This being said IF a neighbor buys the lot then it may not matter. However they may need to make their existing and new lot one lot due to not being a buildable lot.

You have several factors to check on with regard to the property. Maybe make an offer of $60K and see what happens since the house needs work and the owners will not talk to neighbors. Which DOES NOT make sense, get the most money you can without the least amount of added costs and the time it takes to close. Subdivisions take time to happen and there are NO guarantees. The money at this point is in the house thats maybe all it worth in the end in the present condition.

PLUS if more than one person is involved in the inheritance they want their money and do not want to wait for subdivision. Heirs see dollars immediately not waiting for their money. Low ball the offer money talks BS walks...

PLUS the heirs would have to wait for the subdivision to take place. Yes there could be an issue with the neighbors as well but again its about the bottomline possible more MONEY!!!

--99.56.xx.xx




First flip (by NE [PA]) Posted on: Mar 11, 2018 8:16 AM
Message:

After reading Tom's post, what I would be inclined to do is buy the property based on the house as investment alone with the extra parcels being icing on the cake.

Make money on the 2br as a rental or flip and use the lots as extra. --50.32.xxx.xxx




First flip (by John2 [MI]) Posted on: Mar 11, 2018 8:26 AM
Message:

Thank everyone!

NE - great minds think alike :) --174.230.x.xxx




First flip (by Vee [OH]) Posted on: Mar 11, 2018 10:03 AM
Message:

Need to know from te utility companies what it cost to get the connections, I would consider selling the outer lots to recoup cost and rent for a couple years while market research on selling house with 1 vacant lot next door as a package. --76.188.xxx.xx





Reply:
Subject: RE: First flip
Your Name:
Your State:

Message:
First flip
Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from Mrlandlord.com every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers.
Email Address: