Diary of my 4.5th Flip - Liberty, SC - Flip - Chris C.
If you want to know why this title is flip 4.5 then catch up here. http://www.biggerpockets.com/forums/522/topics/150...
Link to pictures. https://drive.google.com/folderview?id=0BwfHXCzMW3...
This could be very lengthy but I will try to keep it to the important stuff. If anyone has any questions I will be glad to answer them. And if you are interested in partnering in the upstate we are looking for someone to help us continue to expand.
Through my direct mail campaign I put the home across the street under contract and noticed this home was severely overgrown. I sent the owner a letter and got a response from her quickly. She had inherited the home from her mother and lived in it for several years with her 2 children. After numerous life difficulties she moved out of the home because "I wanted a house in another city" and just left this home. After a couple of weeks of negotiation and getting her to accept the poor condition of the home we settled on a price of $39500 cash to her. I paid all taxes, attorney fees etc. We closed on the property on May 26th.
As you can tell from the pictures the yard was a completely overgrown and we filled up two 30 yard dumpsters between the clean out and construction debris. The home has a 4 year old roof and was structurally sound.
Main components of rehab were:
- New windows
- Refaced cabinets
- New rear door
- New french door
- Paint interior
- New counter tops
- All new floor coverings
- Updated all electrical finishes
- Exterior painted
- New gutters (First time we used black and think it turned out really nice.)
- Graded a new gravel drive.
This was the first time I attempted to use a GC. In the past I had acted as GC and hired all the subs. I used a guy I meet by just driving up to another investors rehab. This worked out great and was worth the slightly higher labor cost. I work full time and while my wife manages most of our rehabs it helped having someone to over see things on a daily basis while she runs our brokerage and rentals.
We completed the rehab on July 27th, and listed the property on 7/28 at 2:18 PM for $94900. By 9:00 pm and fielding tons of calls and a few showings (We own our on brokerage so my wife is the agent) we had the home under contract for $100900. We pay $4500 toward closing, $525 home warranty, and $1000 credit toward washer and dryer. Needless to say we are very pleased with this outcome and feel confident the appraisal will support it. We have a strategy of under pricing the homes to move them quick and let the market move the value up. Closing is scheduled for September 8th. The only issue that we had with this offer was a contingency for the sell of the buyers home. Fortunately it was already under contract and I spoke with all mortgage brokers involved in our sale and our buyers sale. They were very confident that both sales would go through without any issues.
Total Purchase Cost: 40535
Total Labor: 13942
Total Materials: 12212
Holding Cost to date: 760
Projected Selling Cost: 10000
Realtor Fees, Home warranty, Buyer closing cost, Our closing cost.
Contract Price: 100900
Profit: 23451
The home mentioned above across the street from this one got stuck in probate for a couple months but we are about 2 weeks into the rehab on it. I will do a write up on it soon. In the mean time here is a link to the before pictures and as we add pictures you should be able to see those.
https://drive.google.com/folderview?id=0BwfHXCzMW3...
For those not familiar Liberty is in the upstate of South Carolina about 20 minutes from Greenville and 15 minutes from Clemson.