So as you can see, I have not even sold my first flip yet but here we are working on #2. I have promised @Kyle Larson that we will not acquire another property until 1 sells AND this house is at least 60% done with the rehab.Purchase Details:
- Distressed sale listed on MLS.
- Purchased for $115,000
- Using hard money lender. Paying a premium (15% with no origination but it was my offer so I could build trust with this lender). I also did the math on 10% @ 2pts vs 15% and if sold under 6 months it is better to pay the premium with no points.
- Closed on 10/17
- Built 1975, 2 bed/2 bath, 1850 sq ft house
- This is a dated but very large house. We will convert to 3/2
- Estimated Rehab is $30k
- Estimated ARV: $195k
- Rehab started on 10/20
- Compared to our other property this is much more thorough rehab :)
- Hired contractor to rearrange space, create 3rd bedroom, fix flow and update baths
- Removing old tile throughout (glad someone else is doing this, what a mess)
- Paint, flooring, new baths, light update of kitchen, etc
- 6 week timeline but there are some things lining up to maybe shrink this to 5!
I will update this post with picture shortly. I need to original, awful pics put up :)
@Brian Larson Looking forward to your updates.
We do fix and flips here in Arizona. If you need a hard money lender, I work with a guy that will offer 13.9% and no points with a doc fee and a soft money lender that can provide better terms if you have more time to close. Just send me a PM.
How is your flip going?
Impressive, @Brian Larson ! I like that you're already scaling up. Best of luck and keep u us posted.
Ok, sorry on the delay. Here are the original photos of this place. Rehab is currently in progress but is mostly demo work at this point. I will get some updated photos from @Kyle Larson and post soon.
Some parts of the house are nice as there was a rehab in progress from who knows when. Lots of unfinished and untouched areas though.
Beetlejuice, Beetlejuice, Beetlejuice!
Kitchen is in decent shape
Rehab photos and update on schedule/timeline coming soon...
How are things going on this flip?
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Looking good! Excited for more updates. and to network if you have any deals in the flagstaff, prescott, Northern arizona, yuma area
Sorry for the slow updates on this. We should have the renovation done midweek with it listed by Friday per last time I spoke with @Kyle Larson . I will get some photos up soon and hopefully will have some updates around movement... anxious to get it off the books :)
overestimated some time in a few places but underestimated in others so it has evened out. We will likely be on the market about 3 days after he thought. Not bad for flip #2 and first real rehab with walls coming down, etch
In regards to budget, Kyle has been pretty spot on. If anything he was under so we went ahead and upgraded appliance, master bath and the landscaping for curb appeal. I am hoping that helps move it quick and at the price point we expect.
Quick update. interior is done. Cleaning crew coming in today while the gravel is being dumped this afternoon. We should have it spread by EOD tomorrow, weather permitting.
SPDS and listing agreement complete. Agent should be out Friday AM for pics and listed.
My two big concerns on this place are 1. carport/garage and 2. timing (3 weekends before Christmas/new years). I am hoping I am able to move it even with these limitations.
The place looks amazing. We have definitely helped the neighborhood out with this house being updated to current standards/finishes.
How did these two flips turn out for you? Anything else in the hopper?
I have been a bit quiet recently, my apologies. Not much of a journal.
This property is still for sale and we have had to make some price adjustments... still nothing. We will likely take a negligible gain by dropping price and getting it unloaded. Write it off as a learning experience :)
The other property is under contract. I will write up the details as soon as we close next week. I just don't want to jinx anything as this has been a bit slow as well. :)
Nothing in queue as of now. We are going to get the marketing machine going as soon as we close on Rimrock property. Hopefully have some leads by the time we sell this property.
update on this property. I will keep it short
I will not make money on this flip. No way to do so. Just like our other flip, we are learning a TON. I will likely eat a few thousand $ on this but I am going to chalk it up to learning experience.
The reasons this is taking so long to sell? Well, we think the following factors are causing delays:
- no carport/garage - we knew this would limit us before we got into it
- funky layout - its a nice house and was redone well but the layout is a bit odd due to a very large room from the converted garage
Those 2 things by themselves would likely not be showstoppers BUT coupled together...its been brutal. On the market since December, multiple price cuts....nothing.
I will update once I sell and the overall damage is recorded. Luckily its not that bad but of course you can't do many flips that are negative...ha
@Brian Larson Sorry to see this flip is not up to par. Is it worth looking at changing the layout? Or are the numbers just not there and better to take the loss and move on?
Avoid funky layouts in the future or will you build cost of fixing layout into the purchase price if a weird floor plan comes up again. What is the inventory of affordable flips like in the area?
hey @Jerry K.
I feel like we are rural N. AZ cousins at this point :)
Changing the layout just would not bring the return. Any $ put back into this do not have an ROI over 100% so this is a cut your losses, swallow your pride and move on. All good, I just want it gone. We have had an offer and much more interest since the last price drop but I didn't like the offer (length and $ were not reasonable)
As far as inventory, I cannot say right now because we are not looking. I need to get out from under this Rebel Rock and then I think we have a solid plan on how to acquire properties. I will share more details once I know what is working. @Kyle Larson has been laying some interesting ground work and test out there with direct mail but we have a different approach that should fire up as soon as this is under contract and past inspection contingency...
we will know more soon and I will try to log our work more diligently...real journals.
In fact, my wife is going to stop teaching for a year and I am going to put her to work helping Kyle with the flips so maybe she can be the daily journal blogger :)
thanks Jerry, good luck to you.
@Brian Larson Rural N. AZ cousins - I like that phrase! I would like to get out of Illinois before the whole state has the power turned off and locks changed. They may actually be able to pay off the state government deficits by putting a tax on the people moving out of the state!
Would love to live in the Sedona area or the more affordable (and more services in the area) Cottonwood. Need to make a living as my boys finish college in the next few years so it's Illinois for now.
Kyle reached out to me a few weeks ago about my liens on vacant residential lots in Yavapai and Coconino counties. If I end up with any of the land we may be able to do a deal or two down the road.
That sounds great. We have a lot of connections in the area and as long as they don't all retire we could do some interesting things. The best RE agent in Sedona is family friend so if you do end up heading that way just let us know. Great guy and will do the dirty work to find what you need.
Good luck in ILlinois. I will be coming out for the Raider game in October.
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