All Forum Posts by: Anna Stairs
Anna Stairs has started 1 posts and replied 10 times.
Post: Help! Gone way over the budget of my first flip and still not fin
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Quote from @Jeremy Horton:
Quote from @Anna Stairs:
20k on a deck - forget the deck
How many bids did you get?
we put in the proposal for a great deck to the historical society and for permits and it was denied because it was about 2-3 feet over in the square footage allowed. So a whole new design has to be drawn up to make it smaller and it will take months to find out if it is approved. We wanted out of this a year ago, we want to sell by May 2023. No bids on the deck, this is if we do it ourselves and pay one person to help.
Post: Help! Gone way over the budget of my first flip and still not fin
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- Votes 4
Quote from @Karen Margrave:
Quote from @Anna Stairs:
Help! Gone way over the budget of my first flip and still not finished! Mostly due to inexperience, purchasing a 100 year old house that probably should have just been torn down, crooked contractors and theft of deposits. The investment already far outweighs what the house is worth, probably over $100,000, and there is still at least another $60,000 to finish everything, plus paying realtors and capitol gains tax. Spent the last year of my life working 10-12 hour days trying to do most the work myself. I won't get that back. I still have so much to do, kitchen countertops, island countertop, bathroom vanity countertops, all the trim work, hardwood floor in the family room, a raised deck in back, windows to be restored, cleaned and painted, a new front door, repairs and painting the front porch, steps and columns. Just so much more to do, and not only no profit, but a huge loss.
What can I do to get out of this nightmare? Sell it as is? Sell FSBO? How do I find another investor that may be crazy enough to take it over? Should I finish it just enough to make it more sellable and keep working on it even though I'm in the red now by $100,000?
When you're in a hole, stop digging. I have zero experience on a house that old, and would never attempt to do one, because there's always things that you don't see until you start digging in. Windows should have been one of the first things done. Forget putting in hardwood floors, unless you mean refinishing them. Post some pics if you can to allow people to see the condition of the house, and other remodelers may be able to give you more detailed insight.
Many areas have grants available to help with energy efficiency for windows, insulation, upgrading heating and air conditioning units, you might check on that. $1000 a window? You have to be able to get cheaper windows. How many bids did you get?
If everything were done, what would the value of the house be? Please post pics.
If everything were done, and it sold last summer, it probably would have sold for $600,000. Which is what we have into it, no profit. Now I'm thinking it may sell for $500,000 if we are very very lucky. Less if we don't build the deck on back.
Post: Help! Gone way over the budget of my first flip and still not fin
- Posts 10
- Votes 4
Quote from @Marty Boardman:
I went through a similar experience with a house in Wauwatosa, WI back in 2017. It was an old property and I hired unqualified contractors to do the work. Total nightmare.
But I saw the rehab through to the end, even though I lost 120K. It was still the least expensive option. Selling it unfinished to an investor would have net a 200K + loss.
Still, it was a valuable learning lesson and I ended up finding a new plumber, HVAC tech, painter and siding crew that bailed me out. I'm still working with all of them today. Because of their help, and the knowledge I gained, I earned the loss back (and a little extra) on the next two flips I finished.
Your situation may seem awful now, but you'll grow from it and make it up on the next one (or two or three).
Good luck Anna!
Thank you for sharing and your encouragement
Post: Help! Gone way over the budget of my first flip and still not fin
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- Votes 4
Quote from @Anthony Salazar:
My very first deal I tried rehabbing a 100 year old house, 2,500 miles away. I thought I had a phenomenal contractor and team… I soon learned the hard way. I had to fire contractors, got ripped off, and had some serious stress and anxiety along the way. I had no idea how to get it done and I wanted to quit and never get back into real estate! I ended up pushing through, flew out to the city and “interviewed” multiple contractors in person. I found an amazing contractor that helped get the budget and project back in line and is working to help scale my portfolio. Huge learning experience but in hindsight, I’m grateful for it.
It doesn’t always go as expected and I realize all our situations are different.. It may or may not be what you should do. What I will suggest is this: don’t give up after this project, however it turns out. Keep your chin up, remember the lessons you’re learning and do better next time. You got this!
Thank you for sharing and your encouragement
Post: Help! Gone way over the budget of my first flip and still not fin
- Posts 10
- Votes 4
Quote from @Jonathan Minerick:
@Anna Stairs Avoid FSBO, do a flat fee MLS listing (~$150) and you'll get much better exposure and can work with agents who have buyers. If you need help with the paperwork, get a transaction coordinator (~$450).
Thank you, I will definitely look into finding a transaction coordinator to assist me with a flat fee MLS listing and paperwork.
Post: Help! Gone way over the budget of my first flip and still not fin
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So I'm wondering if I can save some cash by selling off the market. Can anyone suggest how I go about doing that per advertising and finding buyers? Do I just use a FSBO kit?
Thank you
Post: Help! Gone way over the budget of my first flip and still not fin
- Posts 10
- Votes 4
Quote from @William Harvey:
That sounds like a tough situation with lots of learning lessons. I would probably list it as-is to see if anyone can take it off your hands, and simultaneously continue working on it so progress continues. Most likely no one will end up wanting it and you'll be better off taking it the distance.
The only way an investor would want it is if the numbers work. If you can knock down the price to dump it, and it still makes sense for an investor, then that'll work. Otherwise, why would someone want to get into the same situation you're in?
We had an investor reach out about a year ago and they were super nice. Got into a tough situation similar to what you described and they were trying to dump the property half completed. They wanted to sell it for what they had put into it, which would've put us in the exact same situation they were in, since they clearly overpaid.
I think taking it the distance is your best option. Best of luck, praying for an outcome that won't hurt you for too long after!
Post: Help! Gone way over the budget of my first flip and still not fin
- Posts 10
- Votes 4
Quote from @Anna Stairs:
Kerry, I'm not sure what you mean by "Make some wholesale deals and get the money back"?
I understand what a wholesale deal is, but I won't get my money back. Maybe some of it, but at a huge loss.
Post: Help! Gone way over the budget of my first flip and still not fin
- Posts 10
- Votes 4
Kerry, I'm not sure what you mean by "Make some wholesale deals and get the money back"?
Post: Help! Gone way over the budget of my first flip and still not fin
- Posts 10
- Votes 4
Help! Gone way over the budget of my first flip and still not finished! Mostly due to inexperience, purchasing a 100 year old house that probably should have just been torn down, crooked contractors and theft of deposits. The investment already far outweighs what the house is worth, probably over $100,000, and there is still at least another $60,000 to finish everything, plus paying realtors and capitol gains tax. Spent the last year of my life working 10-12 hour days trying to do most the work myself. I won't get that back. I still have so much to do, kitchen countertops, island countertop, bathroom vanity countertops, all the trim work, hardwood floor in the family room, a raised deck in back, windows to be restored, cleaned and painted, a new front door, repairs and painting the front porch, steps and columns. Just so much more to do, and not only no profit, but a huge loss.
What can I do to get out of this nightmare? Sell it as is? Sell FSBO? How do I find another investor that may be crazy enough to take it over? Should I finish it just enough to make it more sellable and keep working on it even though I'm in the red now by $100,000?