Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
Here we are finally done with my first rehab. I started back around the middle of August and 3 months and one massive act of vandalism later we are at the finish line! Please feel free to ask questions and make comments about the pictures below. I really enjoy answering questions and helping out in any way I can. Enjoy!
Real Estate Investor · atlanta, GA · Member since 2013 · 456 posts · 237 votes
12y
Great job on the remodel Jacob - I wish I had caught this posting earlier. You do really nice work and obviously take a ton of pride in your renovations and the home you are presenting for sale. You need to point that out in your marketing efforts. I've flipped more houses than most over the years but what works for me might not work for you:
The agent who can help you find & negotiate the deal on a purchase isn't necessarily the best person for the job on the sale. Agents often think they are somehow entitled to the commission on the other end of the deal if they helped you buy it. Figure out in advance who the "hot" listing agent is in the market you are buying the next house in and interview them for the listing....even in advance. Chat with them about your plans and get some input as to what you should be doing to make it sell for max price. You don't have to listen to them but it's good to hear what they have to say in advance. I have some agents in east cobb who sell everything they touch at great prices...not always market max...they actually sold one recently before it even was listed. Find those kinds of agents and don't be afraid to split the deal
I wouldn't have lowered the price at all...at least not when you did. I would have cut my listing agents commission back some and ramped up the selling agent's commission to 5%. Agents are commission driven and the more you pay, the more attention you'll get...and they'll be lining up to see you next project.
Shoot a great marketing video of the property and get it online ASAP. I am involved in several companies and video marketing is key to what we do and our success. Check with the local colleges and see if they have a video/media program and see if they will work with you on internship or cheap basis...be they will. Youtube is great...but it has to be a good video. If you feel comfortable, get in front of the camera and explain the salient points of what you've done with the house. No one knows that house better than you and your contractor...I'm sure you are doing some of the work so advertise that. Once you have the video you can post the link EVERYWHERE....put a note in it that you buy houses. CL isn't the place to sell your house...though it might a great place to buy. Post it there but just accept the low baller tirekickers that come from it. With my renters, less than 5% come from CL...the rest are from other sources.
If you're going to keep doing this, get with a great local printer and have a nice postcard size marketing piece done...front & back. Set up the standard one side to be all about you, your philosophy and the "why should I buy from this guy?" Remember back when you bought your first home....the anxiety....the unknowns...speak to that...you have an honest face...use it in your marketing. Get known in your market as the "yes..you'll pay a little bit more but I'm worth it" investor. Also put a note on there somewhere that you BUY houses... I like making things do double duty so get the most out of your $$ and efforts.
Once you have the card set up - use it for each property. Take it door-to-door in a 1/4 mile radius around the property and try to meet some of the folks in your neighborhood. Don't knock on doors....and don't leave it in the mailbox as that's actually against the law....leave it in their front door. You'll have your neighbors marketing for you and you just never know...a visitor might see your card, catch the sexy shower and want to buy it. The card got the ball rolling...not your agent. There is always a hidden market for buyers...just like the one we try to find for sellers.
Raleigh is a big IT town with more men than women. Market the house as a 4bedroom from the get-go...if it has a window & a closet and meets basic space requirement...it's a bedroom. It's also the perfect man cave for someone with a family...it's also, more importantly....the perfect home office for someone who works from home. Marketing is all about finding your niche or creating it;
Lastly, if you are going to keep doing this....reach out to the HR departments of leading and mid-size firms in your area....same with recruiters. The larger firms will have contracts with real estate relocation firms...ask who you need to speak with and let them know about your house and future projects. I know quite a few HR people and recruiters and networking with them brings me business.
Congrats on the house.....hope some of this helps for the next one! happy Investing!
I definitely understand your mentality on the "my baby" front, I'm working through my first flip right now and have added a few extra things to make it pop, but as long as I'm in budget it's all good. Did you do any pre-marketing? I've been thinking about putting up a "coming soon" sign soon as the outside of my house is done. I'd really like to get some momentum going as my project finishes and I head into the marketing stage.
Investor · Charleston, SC · Member since 2013 · 106 posts · 18 votes
12y
Any chance that house is in the Brentwood subdivision?
We owned a house in Brentwood and sold it. Nice area. That was before I found BP, so I paid too much for it but it was a great learning experience.
Real Estate Professional · Salt Lake City, UT · Member since 2010 · 608 posts · 163 votes
12y
@Jacob A. your rehab is beautiful. I am assuming you used tile flooring in the bathroom. I have never seen tile long and skinny like that. I have used a 12 X 24 but nothing like you used. Kind of lengthens the room???? I like things i dont see everywhere else.
No pre-marketing. I mentioned it to my realtor but she didn't seem too thrilled about it. I figured I'd let her do her thing on the first one or two houses to see what kind of results she gets and then I may step in and make some adjustments. I don't think it's a bad idea though.
It isn't in Brentwood but it is very close. If you cross over capital boulevard you will be pretty close to my house. With the whole revitilization of downtown and the whole capital boulevard sector in the city's plans I think its a great area for investors if they can find houses for a good price!
You have a good eye! It is indeed tile flooring that was made to mimic wide planked hardwoods. The texture on it is even remarkably close to hardwoods to the naked eye but once you feel it you can definately tell its tile. It's a little more of an expensive product but like I said earlier, since the square footage in the bathrooms was so small I felt like we could use some higher end stuff to beef them up a little bit.
Thanks I appreciate it. It definitely is the nicest house in the neighborhood now I just hope I didn't make it too nice but I guess we will see.
@Jacob_Allen
The property looks very nice. The thing that I found odd was that the interior looks fantastic, but you don't have a garage. Appears you chose to enclose the carport for more sf, which I understand. So the first thing that came to my mind was that you went overboard on the interior when you didn't need too. Seems you may have segmented out a section of potential buyers that want a garage/carport, while putting money into a fancy interior that is atypical for that area.
I have read a few books about flipping. (I am sure you have as well.) Most people say one of the biggest mistakes people make when they start flipping is to try to make everything high-end. You have to adjust your flip to your target area/demographic.
I guess it doesn't matter if you stay on budget and sell it fast! Good luck! I am very interested to find out how you come out and what lessons you may learn from your first flip. Congrats.
Typically I would 100% agree with you. It was actually a turning point on this property when we chose what to do with the carport. I took a good long, hard look at it and decided whether to add a 4th bedroom/additional living space or a garage. I saw that by adding a 4th bedroom the comps in the area took a considerable jump. Something that was going to cost me about $5,500 was going to get me about an extra $10k-12k in equity. At that point the decision was easy as the added garage didn't quite give me that kind of bump. As for the nice interior, we will see how that turns out. If it sells this weekend at the open house you can bet your a** I will be doing it again lol. It's all about taking what you've learned from past experiences and applying them to the future. I'll definately keep everyone updated after the open house.
Investor · Suwanee, GA · Member since 2010 · 104 posts · 22 votes
12y
Inside looks phenomenal. Well done.
If you don't get positive feedback from the open house I would suggest upgrading the landscaping. It is one of the least expensive things you can do to increase the desirability of a home. It doesn't matter how nice the inside of the home is if the potential buyer doesn't get out of the car. Also you may want to consider removing a chunk of the driveway in front of the old garage and installing a pergola carport to get rid of the "brick ranch enclosed garage rental house" look. Once they go inside they'll be hooked.
I like the advice! This yard was so trashed its been a chore to get it even looking as good as it does now. We are brining in a fresh truck load of black mulch today and spreading it out and power washing the house to make it as desirable as possible for the open house. If we don't get interest I'll definately take those suggestions into consideration.
Fantastic job! You really transformed the entire property inside and out. I'm curious to know if you had mold issues in the house. Looks like the kitchen area had some water damage.
I really like the hardwood floors and open floor plan. Sorry to hear about the vandalism but that's why we have insurance!
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
Unfortunately, not very good news today. We only had one couple show up at the open house. I found out later that not only was there a big football game today but our Christmas parade was also going on. So I'm holding onto a thread of hope that one of those two reasons was why the turnout was so weak. Hopefully, we can get some traffic through the house this coming week/weekend although I doubt it with Thanksgiving coming up. Will keep everyone posted.
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y
Picked it up for $51,500 and have around $60,000 into the rehab not including holding costs. This was a complete gut. I'm talking HVAC, most electrical, plumbing, drywall, windows, and everything cosmetic. The only thing original are the exterior bricks and studs. After the addition the house is about 1650 sq ft. Hope that helps.