All Forum Posts by: Account Closed

Here are a few pics of the basement. It is a mess and needs a lot of work. This will eventually be a master suite:

My last flip (see diary here) finally wrapped up a month or so ago and is now on the market, so its time to start another. This house is in the beautiful Blue Ridge Mountains in a small town called Waynesville NC. It has a view to die for and has a nice layout, so it should be a good one. Here are some numbers:

3 bed 3 bath 1300sf with big finished basement that will add another 1200 of so sf

Purchase Price: $109,900

Rehab Estimate: $48k

Acquisition/Holding Cost Estimate: $11,000

ARV: $225-250k

I just closed on this one late last week and am hoping to be done in about 3 months. Here are some pics:

Welcome to NC and BP @Susan Fagnant-Patry

Newton is a great little town and I like investing there. Once you learn the good/bad areas, you will find plenty of deals in either Newton, Hickory or Conover. Good luck!

Awesome information Michael! Thanks for the hard work.

Like @Scot Howat said, be careful relying on formulas too much. They are a great way to run a quick analysis on a property, but you need to verify all of the numbers yourself. The formulas try to build in all of the costs/fees, but they can vary wildly in different parts of the country. I always like to get a solid estimate of the rehab, closing costs and holding costs and then add my desired profit margin on top of that. Learning to accurately estimate these costs, and the ARV is the key to success.

Thanks @Pat S.

I hope your Realtor class is going well!

I'm thinking the seller knows there are issues that will keep a bank from lending on the property. Maybe non-permitted work or some other nonconforming feature. Either that or the seller knows the property will not appraise high enough

I've had private lenders simply write a letter and provide a bank statement. This satisfies Fannie Mae, so it should probably be adequate for anyone.

 Thanks Morgan! I finally brought someone else in because my original contractor had more issues come up that was going to make it even more difficult to finish. I realized these things were beyond his control and not his fault, but I simply couldn't let it continue to cost me money. 

Well, at long last after months of delays, this flip is ready to be put on the market! We will probably list it for around $85k and see how it goes. We did stay pretty close to budget, but we cut a few things out (basement bathroom) to make that happen. I had to suck it up and bring in another contractor to get things finished, but it will be worth it just to get this one done and sold. I'll post the final numbers once it sells. Here are a few shots I snapped with my phone: