All Forum Posts by: Glenn Espinosa

Breaking my left hand in a bad accident has taken me out of the real estate game for longer than I hoped... I've recently started looking again and have quite some interest in this one particular property. Numbers:

Beds: 3
Baths: 2
Sqft: 1,424 (Will be 1600+ with finished sunroom)
Type: Single Family
Year built: 1955
Cathedral ceilings, big 2 car garage in great shape to the rear.

Asking: 79,900 (priced dropped 10k as of 10/20)

Pictures available here http://www.zillow.com/homedetails/6105-Lockamy-Ln-Norfolk-VA-23502/79225876_zpid/#{scid=hdp-site-map-bubble-address}

Repairs: 50k-55k
Some big ticket items: Will need 50% new sheetrock plus insulation. Converting some of the downstairs into a master bedroom with walk in closet and ensuite, 50 % new roof, new floors throughout, paint, finishing a sunroom, refinished kitchen and baths.

ARV: $189,000

Comps:
#1 - 3/2, Same style house with 350 extra sq ft (mine will be similar with finished sunroom) no big garage. Fixer upper sold as is for $110,900 on 10/12/11, 97 DOM.

#2 - 3/2, Similar style house, same neighborhood, 1 block away. New kitchen, S/S appliances, 1 car attached garage, no sunroom, only 1,500 sq ft. Sold for $176,900 on 2/25/11, 24 DOM (I know its quite a long time back)

#3 - 3/2.5, 1440 sq ft. 1.5 miles away, Totally rehabbed house sold for 205k on 8/18/11. 65 DOM.

#4 - 4/1.5, 1556 sq ft. 1.2 miles away, Totally rehabbed house, builder grade fixtures, sold for 219k 8/05/11, 6 months on market.

Will give more details but Im out to meet my contractor at the house. Give me a piece of your minds!

Finally closed on this one earlier this week. Appraisal came back good. However, buyer was really picky with inspection and repairs and that gave me more headache than anything else during this flip. Ended up spending an extra 2.5k on repairs than I initially thought... More details to come and more number crunching but initial numbers looks like we'll clear just north of 25k, market time 14 days, and 2 1/2 months total from buying the property.

I'll be back with the ROI and other stats soon! Thanks for all the tips guys/gals. I DEFINITELY learned a lot and can't wait to apply the knowledge onto the next deal.

-Glenn

Sorry for misinformation. I too am very new at this real estate game.

I do agree however that as an owner occupied you would be gaining other advantages that can throw the 50% rule out of the window. The tax advantage, good long term renters, as well as managing yourself would leave more room for monthly cashflow.

Others will provide a bigger breakdown but a quick estimate of your PITI and I have $1200+-/month. Using the 50% rule in which expenses other than PITI (vacancy, repairs, etc.) cost 50% of your monthly rents, you would be left with only $470 to pay off the mortgage ever month and thus $-730 a month out of your pocket.

I'd think twice and keep my options open.

I get the same type of response from friends and family members. I have a good paying job and my parents keep bugging me about going off to get my masters and stepping up the career ladder as opposed to dealing with the "headache" of managing flips and landlording.

Problem is, I don't truly enjoy my field of work and to get a masters in it would seem like a step in the wrong direction for me.

I enjoy real estate and until that changes I'll keep at it!

Quick update: Got a full price offer plus $2k today! Buyer is using VA financing. Now we just have to pass inspection and hope it appraises for that much...

Any tips on a smooth closing?

Jason,

Just wondering but how are you doing with the property you currently own on that block? Is the rehab completed, if so how is the interest in the property.

I'm quite a ways down in Norfolk, VA but would love to see what you're up to sometime.

I'am a newbie rehabber but IMO that quote should help a lot with your answer. If a lot of listings in your area are staged then you definitely want to be in that category as opposed to not. You have to be able to beat the competition in price, looks, and value if you want your house sold fast.

Maybe compare DOM for the staged houses vs vacant houses in your area.

I'm with J Scott in that my partner and I have decided to stage most if not every property we rehab. It's a small investment into our company and a lot of the furniture will be reusable per each house. Lastly, we hope to entice buyers with the option to keep the furniture with all full price offers. For first-time homebuyers and young couples this may be all they need to move forward with a house as they oftentimes do not have a lot of furniture (at least not as nice as our staging furniture :wink: )

College: Worked at a deli while going to school for a BS is Nursing. Started a small company making online portfolios for healthcare professionals.

Currently: Commissioned into the Navy as a Nurse corps officer and have been in now for 1 and 1/2 years. Currently working in orthopedics and liking it despite having to deal with patients undergoing excruciating pain.

I've been reading about real estate since high school and I finally took the risk and put my foot in the door this year with the purchase of a quadruplex and with the completion of my first rehab. Rehab is on the market and has been recieving a good amount of foot traffic. One couple is coming back for their second look this weekend.

Looking to do real estate part time and transition to full time once I finish my 5 year military commitment.

@ Michael

Thanks for that example. I won't ask for the word doc but I will be drafting my letter similar to yours. Thanks!