Yikes! Just dropped earnest money for a cash close next Fri on a place sight unseen from a wholesaler I found here on the forums. I'll be using 100k or so of fund from hard money since it's a bit out of my cash range. The place looks like decent condition, except for an old carport and crumbling balcony. But otherwise it appears in great shape, 5 bed, 2 bath, 1680sqft, 2 floor with cellar. Hardwood floors on bottom that might be able to be spared I'm hoping. Estimating 32k in repairs, although I'll probably need to hire a GC since I'm long distance. I will probably take a trip out there to meet with contractors and get ideas on repairs.
This is in North East Nashville, 37216. It's right off the 155 & Gallatin Pike, super convenient location!
I'm definitely nervous but excited to meet my goal this year of getting at least 1 flip this year. Next year goal is 2. And I hope this time to walk out with some decent cash.
My goal for this one is a flip since I'm using hard money and the margins appear good, seems like a 340k+ ARV. Will want to figure out how to maximize ARV for that area though as sale prices are up to 400k in that neighborhood.
Anyone familiar with flipping in that area I'd love to connect and bounce ideas off you!
Enough learning and podcasting, time to doing!
Nice man. Who was the wholesaler? Are you able to share some more info? Numbers, etc
Tough to say on what I think, the 37216 zip code is very much on a street by street basis. It's popular in certain ways because it's somewhat more affordable than 37206.
Depending on what you do and how nice you make your renovation, you should be able to sell it pretty quickly if it's priced right.
Wholesaler is from BP - New Western Acquisitions. They are a big operation, but seem reasonable. I'll soon find out...
Purchase price is 244k plus the closing costs (so maybe 250k total).
I'm using one of their recommended hard money lenders since I wasn't up to that level of savings yet, so taking out about 150k at 12% and 3 pts.
I believe market can support ARV of 385k now if the interior is up to par with modern standards and exterior looks clean.
I am estimating 60k rehab costs now. I am going by the advice of the Long Distance Real Estate Investing book and will attempt to get a contractor that lets me purchase all the materials. Last flip I did they were adding saws and all kinds of random crap to their purchases and never ended up giving me all the receipts. I don't trust anybody now until I can develop a relationship. But it seems like contractors first question is "how much margin do you have so I can take it all." I want to be honest for the sake of the relationship, but I guess at the same time I need to be up front with contracting costs and materials.
- Back deck torn down (awkward 3 story high), fill in double doors from bedroom with wall or very large window spanning adjacent windows.
- Tear down old ugly car port.
- Landscaping, add nice garden up front, trim trees, remove overgrown vines from house siding
- Remove old walkway and replace with new right angle walkway to driveway instead of street
- Fix up front porch, new concrete probably
- Repair any problem siding
- Flooring has some unevenness, joists in crawl space/basement need to be added or adjusted.
- Exterior paint, interior paint
- HVAC and water heater appear new, roof appears new
- Interior has some water stain marks, replace drywall patches
- Replace kitchen with modern cabinets, granite, appliances
- Oak floors downstairs hopefully can be refinished
- Replace carpet upstairs with composite flooring or nice carpet - stairs are carpeted!
- Awkward layout with upstairs steps coming off of kitchen, small living room, 5 beds with only 1700 sqft. Possible ROI to open up a large master suite upstairs while still having 4 beds, or open up living wall downstairs to a open study.
- Possibly add large deck on downstairs although it does not have access to living area, only bedrooms in back. May not provide ROI.