All Forum Posts by: Hilary Stalder

I feel like I should've posted the numbers on the original post to give some context...

House is listed at $200k (would not pay full for this!), 1192 SF, 3/2 

Comps - EXACT same house (minus foundation issue), light rehab (paint, minor landscaping) sold for $295k in August of this year

Similar house sold for $320k on 10/11 full rehab (I think this was overdone for the neighborhood)

I will need to get quotes from foundation expert, BUT considering: 

ARV = $300k (talking to another flipper that did something like this it sold for $15k less than market) so factoring that in, we'll say $285k ARV

-$20k Foundation - again need to verify with expert

-$15-20k Rehab (we'll say $20k WCS)

-$7k Money Costs *if purchased at $175k

-$6k relator cost for sale (mom is agent, family discount)

-$15k holding costs (4 months)

-$30k desired profit 

-$10k contingency

=$177k max PP

Or are you guys thinking this needs to be a home run deal to work, as in purchase in low 100s?

@Adam Mittermeier thanks for the input! It's hard to find a desireable property at this price point in this area, but agree. Sometimes it is better to wait!

@Sam Shueh Yikes! At 80k I think I'd run too! I think I could get a whole new foundation for less than that though in Orlando... 

@Melissa McRay Johnson great tips! Thank you!

@Jim Thomas I guess the soil was tested and it's not a sinkhole. I am not familiar with these tests so I'm merely quoting here, they said "report is above 100pp". Although that's definitely still a concern in my book as it's not uncommon in Orlando.

@Melissa McRay Johnson thanks for the reply! That's GREAT information! Before purchasing these properties did you have an engineer or foundation specialist (or both) take a look to give you a quote? Or did you just assume worst case scenerio? I think there's some real potential...

@guiseppe it's hard to say, but if you could get that deep discount and factor for worst case it could be worth it?

@Kelly Iannone Can't wait to connect! :) Love to meet other local investors!

Thanks @Owen Dashner and @Michael Slockers ! Maybe it's worth a little more research. My mom happens to be a full-time agent so I'll ask her and have her talk to her co-workers also. In the meantime I'm trying to see if I can get someone that does foundations in the area take a look at it. If it can be fixed it's a great property! Even if no one wants to buy it could be a great buy and hold, the rental rates in that area are healthy. Anyway, will keep you posted what happens. 

Thanks all! @Christopher Phillips @Mark Sewell @Todd Powell

Mark you're right! I've reached out to a local flipper/wholesaler to see if he's dealt with this before. It is a little daunting to a beginner. We have a lot of sink holes in Orlando (sandy soil) and that's not something to mess around with!

Any other Orlando, FL Flip Teams or Orlando Rehab pros that can chime in would be appreciated! 

Agreed! @Christopher Phillips 

I agree @Todd Powell , that's why I ask. Look at the challenge differently, more risk more reward. But maybe I'll take the chance down the line and not as a beginner! 

Appreciate the feedback :)

Hello BP! I'm new to this world AND that of flipping. I've been in the construction industry for over 6 years though (residential for 3 and now commercial 3+). I came across a great investment property in Orlando, FL ($200k LP with upside of about $100k), I have a family friend that is interested in funding the deal, but I just found out the property has foundation issues. Apparently they have had the property pinned and there was a failure, so they re-pinned and now house is not level. I'm thinking of walking away from this because re-sale wise I don't think it will move. Has anyone had a similar situation? Foundation issues scare a lot of people away, so although I'm not afraid of hiring a professional, I think on the back end it may hurt us. Thoughts?

Umer, as a Florida resident for 29 years i think that's an excellent idea. It may even be a good area for short term vacation rentals with the proximity to the parks. A colleague of mine has an AirBNB there that is consistently rented. 

Good luck!

@RyanJohnston ,

Thanks for your reply! I tend to agree with what you said about the GC and the more I hear from everyone, I also agree with activating my RE License. I asked you to connect, I'd love to hear more about your thoughts on setting up an LLC (which I see you've done). Thanks again for the reply!

@Katherine Blazer,

I would love to connect and get any tips you could help me with. Definitely could be a great partnership in the future! Thanks for the request!