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All Forum Posts by: Andy Sabisch

Andy Sabisch has started 42 posts and replied 594 times.

Post: Siding Options: Need Help and Advice

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500

The question I would ask (or determine) is what is the condition of the siding that is on there now.  Are there gaps, cracked wood, openings that are allowing wind and moisture to come into the house?  Wrapping the house is what we tend to use as long as the siding is not in really bad shape.  I would ask the siding guy if he will address cracks / gaps before he puts paper or foam board up and then the new siding?  Is this going to be a rental or a flip?  Not saying to go cheap for a flip but as long as the surface is prepped and then the wrap put on correctly, you should have a fairly energy efficient home especially if there is any insulation in the walls.

Post: Solid Fix & Flip Opportunity — Would You Take This Deal in Today’s Market?

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500

For cosmetics and a roof the $60K seems high and the timeline fairly long.  Does that include closing, doing the work, list, getting under contract and then closing?

Make sure the numbers work when you factor in the carrying costs for the loan, utilities, etc. With the higher interest rates, that has been the downfall for a number of investors when the costs exceeded their budgets. A solid HML will factor the costs in to make sure you and they are covered . . . if the company you are talking do is not doing that, consider looking elsewhere.

Not sure what bringing in a partner will do unless you are using that to eliminate the need for a HML.

As far as comps, how long were they on the market and were there price drops.  Make sure you factor that into your holding period as higher interest rates will kill profits in a heartbeat.

Good luck - just make sure the numbers work and remember, you make the money on the buy not the sell.

Post: My Fix and Flip property not moving in market

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500

If you want some more focused responses, how about sharing the MLS link so we can look at the listing, see the pictures, look at comps and give you better feedback? At times suggestions here that are general in nature tend to get responses that are regional specific which may or may not help you.

We are in a prime buying time before kids go back to school so time is of the essence.

Let us have more details on the property so we can give you specifics rather than generalities.  Overpriced is often the reason however.

Post: Foreclosured auction, opportunity or mistake?

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500

Kevin brings up a good point.  As I mentioned earlier, simply winning the auction may not clear all the liens against the property and you may find out that what you won it for is a fraction of what is owed.  The auction company should be able to answer that for you.  Also give the tax collector for the county a call and see if they have additional money owed that are not being cleared.  Last thing you want to do is get a great deal and then find out there is another $100K in debt you had not expected.

Post: Foreclosured auction, opportunity or mistake?

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500

We have done several of these and as you said, getting the current tenant out is the big challenge.  Then what they did do it before leaving.  Cash for keys worked in all but one case and in that one, the owner trashed every room (kicked holes in the walls), tore the kitchen cabinets off and broke several interior doors.  It could have been worse - have talked to others that had cement poured in the toilets and more.  

Look at the auction related fees you will need to pay and ensure you get a clear title as some liens are not cleared through the sale.  Look at the exterior and see if you get a feel for how it was maintained.  

If you get it at the right price they are good to purchase but assume the worst in terms of reno costs and hope you come in well under that

Post: Agents bring me deals each week- here is how- what are you doing low cost/no cost?

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500

We use wholesalers as long as they are realistic with their numbers. Most over inflate the ARV and under estimate the reno costs. For those that are in the ballpark, we have developed relationships with them and get notified of properties when they get them. Call some of the ones that posts signs in your area or look for a Facebook group that may have solid wholesalers in the group. As long as you can tell if it is a good deal, let them beat the bushes to find the properties and you just close them.

Post: What’s the minimum profit you’ll take on a flip these days?

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500

Honestly I hate to see posts where people draw a hard and fast line saying they would not get out of bed unless the deal generates at least $50K to $75K or more.  If you are in an area where houses start at $250K and go to more than six figures, you might be fine with making that cut off line.  In many other areas, houses that are ripe for flips are selling fixed up for under $200K.  We have worked in these areas and making $25K on a light rehab will get me out of bed any day of the week.  If I can get 4 or 5 of these in the time it takes someone to find that $75K minimum property, who is ahead in the end?  I am not at the point where I pass up a flip that will generate a profit - it keeps my trades busy and food on their table and I know when the home run passes my desk, I will have the people I need to take it across the closing table.

Sometimes hard and fast rules hold you back especially when the low hanging fruit is gone

Post: Finding GCs that work with flippers

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500

There are several REIGs in your area and it would be worth stopping by at one of the meetings and ask who others use (and more importantly who they don't use to avoid learning the hard way).  

One thing you need to keep in mind is that if you are looking for a GC to give you a quote for a job on a property you are looking at buying as compared to one you already own, that free quote offer will go away quickly if you do not buy it and look for somethign else.  They need to make money too and giving out 100 free estimates with no assurance of getting a job since you do not own the property will get you on the do not call back list.  

If you have a property and want quotes, call a few and see what they can do but if you find one that works, try to stay with them as it will build a relationship that will pay off for both of you in the long run.  We have trades that will come and deal with an issue or give us a quote since they know we will keep funneling them business.

Post: Need Advice on stairs rehab

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500
Quote from @Cameron Richard:

@Andy Sabisch Thanks for the great info Andy! There is one stair that is pretty badly cracked and it appears the previous owners sealed it with some sort of glue but it is still a tad unstable it seems. What is your recommendation for stabilizing a partially cracked tread? Appreciate your insight. 


 Is there access from underneath?  we have used bracing underneath to address this issue but if not, you may need to look at replacing the damaged tread - it won't get better over time and you would hate to have a tenant fall and go the legal route

Post: Need Advice on stairs rehab

Andy Sabisch
#5 Rehabbing & House Flipping Contributor
Posted
  • Investor
  • Wilkes-Barre, PA
  • Posts 596
  • Votes 500

We have done a number of older homes and had to deal stairs.  You need to assess the condition of the treads - if they are cracked, make sure they are sound to leave in place.  Option 1 is what we go with and then add tread carpet pieces to put down.  They look great and saves a lot of work.  We have had to rebuild stairs a few times and that is not a fun job.

Shop around - you can usually find a color / pattern that works with your interior - here is an example which will hide cracks and imperfections in the treads.

Amazon.com: KOOTETA Stair Treads for Wooden Steps Indoor, 15 Pack 8" X 30" Non Slip Carpet Stair Treads with Reusable Adhesive for Kids Elders and Dogs, Surface Polyester TPR Backing Stair Runner Rugs, Dark Grey : Tools & Home Improvement



If you want something that covers the tread and riser, you can find stair runners which can be stapled / held in place with a stair runner rod . . . we have used this on 1800 homes but it is another option to consider



Search Results for carpet runner at The Home Depot