Isle Of Palms, SC · Member since 2013 · 38 posts · 18 votes
Finally completed my first rehab project after 10 months with a partner from BP. He put in the money and I put in the work. The house was nothing more than a shell when I found it on the MLS. It had been partially demolished by the rehabber who bought it before the downturn and then sat open to the elements for 4-5 years. There were no interior finishes and no plumbing, electrical or mechanical systems. It was a definite eyesore for the community.
We renovated the house from 900sqft to about 1550sqft with 3 bedrooms and 2.5 baths. The house sold without listing it on the MLS right after we got our drywall up, about 2 months before it was complete. We made about a 22% profit on the sale. All in all, it was a great learning experience and a successful first effort.
Washington, DC · Member since 2012 · 40 posts · 13 votes
12y
Patrick/Jason,
Excellent work on the project, I'm working on an older property right now myself and while I'm going less contemporary on the millwork and cabinetry I'm using some similar techniques opening the ceilings and reworking the exterior trim package. Does Charleston have a good pool of buyers looking for more traditional floor plans and home sizes ?
Unfortunately, outside of rural/exurban areas, the majority of our older housing stock is quite large masonry city rowhouses that are really only workable as multi-unit condo conversions due to the heated up market. I'd love the opportunity to work with more stick framed properties where the street scape offers different looks rather than an assembly line of new condo high rises and brick homes.
Isle Of Palms, SC · Member since 2013 · 38 posts · 18 votes
12y
@Patrick Jacques there is no clear record, but the house was likely built in the 1800's based on the methods. The structure was actually in relatively good condition as was the foundation. There was only minimal termite damage to the wood which was repaired. The siding was pretty bad and obviously the roof was in terrible condition. Not much else left.
@Ray Browne Good luck with your project. There are definitely a lot of buyers who want the old Charleston look and I believe the historic part of the house was a definite selling point. It adds a story to the house and provides character.
I hope all is well. Great job on the tremendous and fruitful project. Quick question, was there greater potential for appreciation? Did you guys muse over the the lease and hold strategy then potentially sell for great appreciation in the upcoming years?
Investor · Hendersonville, NC · Member since 2013 · 754 posts · 281 votes
11y
Hey everyone. It's been a while, but I was going through this thread to catch a couple of little quotes from ya. I'm doing a photo book, a retrospective/diary via Shutterfly. It will hopefully be about 50-70 pages, and from my experience with another project's photo book, Shutterfly does a great job, fairly quickly, if you're willing to pay $60-75. It's been neat to get back into this project a bit, look at photos, review emails, scan this thread. Boy, it was a challenge at times. QUITE a ride for a newbie. In fact, nothing afterwards seemed to really catch, so I temporarily (or permanently?) retired from REI. Yes, yes, I know, you're booing. I put my capital into stocks, pay a 1% fee annually to my very capable financial advisor, and am hoping to keep it there fairly untouched for about 20 years. I know he is fairly conservative and wise, so I think my chances of losing money are about 0%, my chances of accruing about a 100% return is about 75% likely, and the chances of getting a 150% return is about 50/50. That's not spectacular, but it is easy! I would love to get back into something some day, but being a buy/holder is a bit challenging, and obviously being a fix/flipper is very challenging. I would need a fair amount of capital since I don't want to take from my retirement fund. So we will see what the future holds. I would be interested to learn about whether Patrick H. is involved in a project or sitting tight. Any other comments on the project or my latest decision are welcome.
Investor · Hendersonville, NC · Member since 2013 · 754 posts · 281 votes
11y
Oh, @ABubaker, yes I had considered that. My wife just wasn't into the buy and hold idea. She was worried about the flood insurance situation here on the Charleston peninsula. Considering the nature of insurance companies, the Federal government, and the fact that we are doing exactly S#IT to combat climate change, I have to say it was a prudent move. The downsides were: it appeared to be a decent build to my fairly ignorant eyes, and the rental market now is hot. It proabbably would have netted a 4-6% ROI, involved landlording, and might have appreciated 5-10% a year in good years. In the case that our f-ing banks and the politicians they own screw up our economy again, it would have lost 30% like the area did in 2007. We have since recovered, but it would have been a huge period there during which we probably couldn't sell. There is also the process of gentrification to consider, from a moral perspective, but I guess flipping it incurs the same questions...
Investor · Hendersonville, NC · Member since 2013 · 754 posts · 281 votes
11y
@Ian Vollers interesting question. We got more positive feedback than zilch, but less than I would have imagined. One issue is that competition is such that competing investors and Realtors have a certain amount of envy, and secondly, the neighborhood is ambivalent about the gentrification going on. Though they appreciate their sale price increasing should they sell, they have to pay property tax that is commensurate with increases in value - so that if they don't sell, they feel like they are incurring a net loss by the appearance of big rehabbed houses on the block.