Well, I am in escrow again... YES! I finished my first flip in March. Sold quick, great $, paid off all my CC debt and cleaned house. Now I have been looking for 6 months for another project! Dear wife is PRETTY restrictive on my house profile for projects. Since we are using our HELOC for down and rehab and holding costs... she isnt down to risk too much... so we have waited for a sure thing.
I have a great buying agent... who was really cool about walking lots of houses... we offered on a few flip targets... offered on a few BRRR targets both singles and MF, and nada... spring is brutal in Nor Cal. Anything that is public gets hammered with offers in the first week. Well, patience paid off. My agent calls me and says... "we have a winner... estate house, they dont want to do ANYTHING, and want out quick.... we have it in house, you get first crack"
Usually in Norcal that means that the kids have watched flip or flop 20x and went on zillow to get a value and they are HIGH. well this time... I about fainted. they were right on, if not low, even for my idea of a price. I toured it with both agents... then they say oh there are NINE kids that have to sign off, and one is a realtor. I am CRUSHED. think this will likely derail any offer I put together... but the realtors say no... that they have walked them through what they are asking for. I walk the house... it is grandma... needs everything... but 90% cosmetic... no major issues so far..
I offer them exactly what they wanted at first meeting... but kind of figured if they got an offer day 1, we would get bumped a bit... well, they came back from my 600 offer, that they wanted to NET 630k after realtors. I said no... did my usual song and dance on issues, asbestos popcorn etc. etc. and we countered back at 620k, they countered back at 629 with 45 day escrow. we took it.... I am walking it with my contractor and selling agent friday....
I will have pics and all as we go along!
What’s the repairs and ARV?
My initial walkthrough was 125k.. contractor is friday..., ARV before my listing agent has seen it, from my other 2, is 875k.
I walked it with my contractor.... He agreed with my initial estimate... counseled me against moving walls... Hard to really talk turkey with owner sitting there... I scraped some popcorn and we got a positive asbestos test. So that will be interesting come renegotiating.
My town is that one where people require a whole house mold abatement if they see a spot in the shower stall... so asbestos popcorn in 80% of the house is an issue... we will see.
Congratulations and thanks for letting us live vicariously through your flip :)
Here she is... unfortunately we cant get the daughter out long enough to do real walkthrough and inspection and pictures... Hard with these probate deals...
Well, this flip has gotten interesting... We are at a cross roads with the project... It pencils... but not AMAZING... Sellers rejected our repairs counter... so we are at our previous offer... Said they already came down to our original price by a lot of $$.. so they wouldnt come down more. We are going to go forward and take the smaller return... and if we get lucky and Ca. keeps being ridiculous and someone over pays, this sac bunt might turn into a triple.
The only thing that is fighting this house is the 2 story making opening up the 1st story really hard. the kitchen is old funky and small eat in... see below... and the stairs go right up the middle of the house, with a door closing them off...
Well, we closed this morning. Always something interesting.
I got into this house minute 1 of them them having it "available" due to my realtor. My agent had been working the family before the parents even died. So I was the first to see it. I entered a contract with them that day... and offered them a 60 day escrow. I would eat the EMD cost to get the deal... They said ok, thats cool, we will do 45. I didnt think they would be able to deal with the belongings etc... by then... but they said yes.
So we are in escrow, discussing lending, dates, times, etc... and they want to move it UP a week. to today vs. next friday... I say... "Are they going to be able to empty the house, and move the one daughter out by then?" They say yes... I know its BS.
well, SHOCKER... 2 weeks ago, they pop up, and say hey... the one daughter cant get her new place in time... can we rent back for a week? I am peeved, but it doesnt affect my timeline much at all... so I agree. We close today, and take possession next friday.
anyway... meeting with my design team tonight... and we will begin demo on the 20th... Off and Running...
I met with my design team on friday evening... Got some really good ideas... I think this is an important aspect of a flip... get together, spend a few bucks on a cohesive idea and look for the house. We are going with Modern farmhouse, lots of white and black, clean and bright.
Got keys today! Had a good look at the house empty for the first time... much easier to imagine the property... give it a good walkthrough.
Here is a matterport walk through of my project... BEFORE
My realtor team is killer. A real partner. She paid for this because she is figuring out how much of a cash cow flippers can be... so I will have before and after 3d walk throughs...
That 3D walk through is awesome, @Carson Wilcox
What's the timeline for this project?
my goal is 60 day reno... get it on the market before the holidays hit.
Here are some demo day pics for the downstairs. Baths, kitchen, baseboard and doors out.
Hall Bathroom gutted,
Master bath gutted. We also took out a linen cabinet that was in the hall butting the shower... gets us a foot of shower back, in what is a SMALL master. it is the only real downside of this house.
WTF are the pics coming up sideways? Dang it.
Good start, keep the pictures coming.
@Carson Wilcox Congrats on your 1st and 2nd flip! Just want to consolidate the numbers
ARV is 875k
Repair estimate is 125k
Purchase Price 629k
I'm guessing about 87k will go towards realtor fees, closing costs, holding costs, etc.
Projected profit 34k? Is that right or am I missing something?
why are mine posting sideways @ Sam B?
Originally posted by @Sam B. :
Good start, keep the pictures coming.
You are a little strong on some areas...
ARV 840 850
Holding and realtors should be about 60k,
and reno about 105k...
But yes, unless my holding goes long... I should gross 40k or so... My risk here is holding, and the project finishing in Nov. But we will see. I wish this house had come to me in Nov! vs August!
@Carson Wilcox Thanks for filling in the gaps.
You're a massive action taker! Kudos on doing two flips in such a short amount of time.
If you have time October 18-20 check out an event in San Diego called Flip Hacking Live I think you'll get a lot out of it.
Originally posted by @Carson Wilcox :
@Caleb Heimsoth. Yep.
Unless I want to move to Ohio. This is the kind of spread I am seeing in norcal. It is tough to find deals with housing as hot as it is.
If you’ve got that kind of money from a heloc you could easily spend that on out of state rentals (not necessarily Ohio lol) and get a lot of money passively.
I have thought about it. I am planning on learning this "trade" by doing some local, albeight less % return flips, before I try and expand to a out of state deal. WHen phase 2 (buying MF) comes in, I am for sure gonna look elsewhere...
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