Hey Jesse. Congratulations on coming to an end for your first deal! Way to go! I am also working on my first deal, although across the country in New Hampshire. The house I actually bought is a live in flip and the previous owner was a hoarder! I have been doing all the work myself with the help of many friends. They only thing I have contracted out was putting in a 18' steel beam. That was just too heavy for me to lift. The place was so bad the floors were actually sloped in, so I had to deal with structure issues as well as termites. Being an engineer, I felt confident in all my structure reapirs and worked with my local building inspectors. I felt overwhelmed at times so I got quotes from contractors and they were going to do what I was planning, but charging me an arm and a leg. I replaced the subfloor for first floor, replaced rim joists, sill plates, had the house on jacks with temp support beams, moved a bathroom, electrical work, plumbing, kitchen redesign, wood floor. The future is renovating the master bath. I picked it up for 325k using the VA loan. Reno budget of 40k. ARV 425k, hoping for a 60k profit. I'm looking to get into a market with a smaller barrier for entry, thinking about the midwest so I loved hearing about your first deal. Thanks for sharing. When are you looking to do your next deal?
...we should get Brandon and Josh to interview you once it's all said and done! :)
@Ryan Ridgley I had the same thing with contractors. I live in Iowa City, IA which is a hot market around here. All the contractors around here are always busy. So trying to get them to travel to a smaller market, 40 minutes away, was hard and any contractor around wanted a lot of money. I had a couple bids for plumbing (rerun supply lines in pex from copper as mentioned above and set fixtures) for $6,000 to $8,000. I did it for a fraction of the cost but it cost me more time. The Midwest is a hugely growing market. And I predict that it will continue to grow. Recently the Midwest was named the best part of the country to live in.
Congratulations on your first deal. I’m mainly focusing on wholesale and flipping. I will have rental properties and look to build properties too. What are your goals?
Congrats @Jesse Carlson !
It sounds like you are quite handy! We have never done something that extensive. Is your hard money lender local? It sounds like they were pretty flexible. We are looking to get into some flips and more buy and holds as well. We are mostly focused on buy and hold for the long term. Just lost a four way bid for a property here in waterloo that would have been a great flip or rental candidate. We went above asking price, with no closing costs but someone outbid us. I am working on building out a motivated sellers website to try to get off market deals. Let me know how the listing goes!
Man you have a lot to be proud of. Way to go and thank you for sharing in such detail!!
@Jesse Carlson You hit it on the head about taking more time. Everything I am doing though I am learning new skills and I can apply them moving forward. Not just for doing to the work myself but recognizing what will work and what won't in certain layouts or situations. I am actually looking into getting into the midwest myself, you are correct that it is expanding greatly. I would love to chat via PM regarding your market and I'll be happy to share what I have here in New England.
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