First flip

3 Replies

I bought a foreclosure for 58k and its appraised for 90k. Surrounding RE average of 92k value. Higher ones for 110. That appraisal doesnt take into account any of the upgrades I've made(replaced laminate floors with engineered hard wood, laminate kitchen countertops with granite, paint, among smaller less mentionable things). I heard of one guy who would try to "sell by owner" at first before listing.

After this sale I'd like to start the hunt for my next flip immediately. The first time I made a mistake on my contractor whom was horrible. How do i find a good one, because those who tell me "so and so is great" never seem know what they're talking about.

Ive considered buying a rental, but it's unlikely I will live here long(no longer than two years) and I don't know enough about management companies to make a comfortable decision. I own a rental out of state already but, I have family to take care of it for me. What should I bear in mind when looking for management companies? or if I should at all?

1200 sq ft

3 bed

2 bath

1989

Originally posted by @Jeffery Kuhl :
I bought a foreclosure for 58k and its appraised for 90k. Surrounding RE average of 92k value. Higher ones for 110. That appraisal doesnt take into account any of the upgrades I've made(replaced laminate floors with engineered hard wood, laminate kitchen countertops with granite, paint, among smaller less mentionable things). I heard of one guy who would try to "sell by owner" at first before listing.

After this sale I'd like to start the hunt for my next flip immediately. The first time I made a mistake on my contractor whom was horrible. How do i find a good one, because those who tell me "so and so is great" never seem know what they're talking about.

Ive considered buying a rental, but it's unlikely I will live here long(no longer than two years) and I don't know enough about management companies to make a comfortable decision. I own a rental out of state already but, I have family to take care of it for me. What should I bear in mind when looking for management companies? or if I should at all?

1200 sq ft

3 bed

2 bath

1989

Are you trying to flip it? Or are you trying to rent it?

How much money did you put into it? Did you do enough to bring it up to the higher ($110) level or did your improvements place it somewhere in between the appraisal and the higher level?

There is nothing wrong with putting it on the market for a month or two and if it doesn't sell then renting it. For a PM company I'd ask other investors in your area? And I would also call post housing and see if they will recommend (not supposed to, but you can probably cajole it out of them) a PM company. But for the first two years until you move I suggest you manage it yourself.

I want to flip it immediately. Because the appraisal was before amt improvements were made(around 6k in improvements), im not sure what I should shoot for. The rental idea was for my next investment but I have no experience with pm companies. Ideally I'd like to have 5 more rentals, but I won't live here long so I won't have hands on control after a few years. Is a pm company worth thinking about for that many rentals? Or should I sick to flips?

I suggest making multiple posts for different themes.

Does your house match or beat the $110K houses? If so go for that? If not go for something in between $90K and $110k whatever is commensurate with the degree of improvements in other houses in the area. To simplify. 90K has no granite or hardwood. 100k has either granite or hardwood. 110k has both granite and hardwood.

There are a lot of other factors I'm skipping over like what the curb appeal is. What condition the roof is in? Does it need outside paint. If there are some open houses going on in the neighborhood I suggest you go to some of those to get an idea as to what other houses are like. Take a look at all of the pictures and descriptions you can from the past few months of the houses on sale in the neighborhood.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.