Updated almost 2 years ago on . Most recent reply
Yamhill Oregon Investment. Im finally adding my investments to my profile.
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $325,000
Cash invested: $45,000
Sale price: $500,000
When we purchased this rundown house with 7 acres on the river it predictably smelled like wet dog, cat urine and general disappointment. It was a small unorganized three bedroom, one bath with an added on stairwell that was approximately two feet wide and five feet tall.
What made you interested in investing in this type of deal?
This is our typical deal, slow fix and flip, or you may call it live and flip. We live in them while we fix them, we do all the work ourselves and sell them two years and one day after purchase.
How did you find this deal and how did you negotiate it?
I used zillow alot at this time and I had an amazing Oregon realtor, Julie Friedrich. We saw it three hours after it was listed, put in offer in before we left and had it under contract by the next morning.
How did you finance this deal?
FHA 3.5% down, 30 year term
How did you add value to the deal?
We completely gutted it, cut a hole in the side facing the river, built a two story entry foyer and put the stairs in it. We added a large picture window and one and a half additional bathrooms. Gave it new all new siding, new electrical panel and 60% new wiring, a metal roof, paint inside and out, a mudroom, gourmet kitchen and a pantry. As a bonus we painted the old dairy barn to match and trenched electrical out from the house, added lights and outlets including 220V. Intense project.
What was the outcome?
Solid financail outcome, quick sale, learned aboutwell issues and remediation.
Lessons learned? Challenges?
Very trying experience dealing with extended family as coworkers, would not reccomend working with family on such a big project unless you have worked with them before on similar projects.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Agent: Julie Fredrich, (503) 329-0233, with More Realty 14945 SW Sequoia Pkwy No 150, Portland, OR 97224. Highly recomended.
Most Popular Reply
Living in the flip is absolutely doable though to be most effective you need a high level of flexibility and creativity. Living in them is a pretty strong part of our strategy: your always right there so if you only have five minutes you can still fix an issue or look at something, there's no travel expenses, insurance and mortgage are easy to get and fairly cheap and if its your primary residence for two of the last five years the profits are tax free (up to IRS maximums of something like 500K, check with your CPA/lawyer). We have flipped a house on average every two years for the last 16 years.
That being said during this particular "remodel" there was only one room in the whole house that did not have something major (think moving walls around) done to it. You can imagine, by looking at the one "in work" photo I posted, that this was a very busy and very dirty project that lasted a long time. So during late summer/early autumn my wife, two girls and I stayed in a tent for a month or so, a large tent but a tent non the less. Then when it got too cold to stay in the tent I bought and old school bus, gutted it, put in a wood stove and we lived in that over the winter. The wood stove kept it toasty but was hungry, no insulation to speak of meant that stove had to be tended to constantly.
Many challenges (read that as "opportunities for growth and learning" but when we sold it I made enough to pay off all my student loan debt and put down the 3.5% for the next house (that turned out to be in Idaho).
The agent that helped me buy that house and three(?) others was Julie Fredrich, (503) 329-0233, with More Realty 14945 SW Sequoia Pkwy No 150, Portland, OR 97224. Give her a call, she is one of, if not the best, agent I've ever dealt with and I've had dozens of agents in multiple states. You will be impressed if you work with her.
I know its long but I hope that helps!
Cheers