All Forum Posts by: Jay Chekansky

Where the floor joist cupping was bad, we had to cut out the floor and plane down the floor joist high spots.  Nicole Curtis crapped her pants when she heard that we didn't try to save that old pine T&G.

 Thanks JD - I'm working in a neihborhood that was pretty ugly about 8 years ago - things are really coming around though and taking this area from a red zone to something that I'd consider orange/yellow.  2 new schools, walking distance to the YMCA, and a huge hospital expansion 2 blocks away make this area soon to be desirable.

From what I gather, there was a big step up in building/construction betweent he 50's and 60's.  This home built in 1950 had floor joists that skipped the planer that we take for granted today.  The floor here has girders placed every 10 feet, with what I believe to be oak 2x8 floor joists at 24".  Needless to say, each joist is cupped, with the floor sinking between each girder.  The good news is that the diagonal plank sub floor is doing a great job at hiding it.  The pine tongue and groove is tempting to replace, but so far gone and wavy that it's going to have to remain in the dark.  I don't think it can be saved.

Some things I learned in the first few weeks:

1. Get your rehab team together ASAP.  I run a landscape business full time and treated this flip as a hobby/project initially.  If you want to run 2 business, you better plan on not slacking off.

2. The day after closing is not the day to start making phone calls to roofers, contractors, inspectors, etc. See #1.

3. Get a home inspector there during the diligence period.  Just because you did a successful flip 800 miles away 5 years ago does not make you an expert in a new part of the country.

4. During the inspection process, don't walk around and say "$1500 for the kitchen, $300 in paint, $600 for the bathroom" - document everything that is going to be needed - Every fixture, switch, baseboard, shower curtain - Everything. Then price it out or estimate after the face.

5. Talk to neighbors/mailmen/etc. I was blown away with how nice and informative everyone was.  Visit at a few times during the day and drive the neighborhood.

6. A great opportunity for systems - having a VA take care of changing over gas/elec/propane/water/sewer/etc.

7. You cant have 2 full time jobs at once.  I'm lucky that my holding costs are so low.

OK BP - it's about time I did this.  I'm in the middle of my first rehab that doesn't involve me living in it...unless I'm at the house working after 10pm.

I've completed and documented some vintage motorcycle builds on other sites in the same way that this is going down.  Documenting progress online adds motivation, honesty, accountability, and most importantly...vulnerability.  It is necessary to be honest with yourself and the online community to make progress, share lessons learned, and move forward together.  So here is my first flip (non-hobby flip) in the raw.

I had completed a live in flip in central NY when I was living there - it was a hobby.  After spending all day chained to a desk in the corporate world, I felt the need to medicate myself after hours with hands-on, value added activities.  So I gave my old place the best of the best, created and installed all myself with no cognizance of cost, and off we went.  

This time is different. I picked up this 2/1 SFR built in 1950 in Hendersonville, NC from a wholesaler that I had developed a relationship with.

Initial Numbers:

Price: $67k - $27k out of pocket with a seller note carry for $40k/balloon payment at 0% for 12 months

Rehab Cost Estimate - $13k

Rehab Items - New roof, landscaping, fix deck, flooring, paint, bedroom carpet, update fixutres, update kitchen/bath.  Some things to note- the plumbing and electric have all been update recently.  The wallpaper had not been updated.

Timeframe - Early November start to mid-January finiah.  I plan to do roughly 75-80% of the work myself.

Numbers - Purchase for $67k. Legal Fees for Purchase $1,300. Rehab $12.7k. ARV - Conservative $95k-100k. This won't be a homerun, but I knew that. Holding costs - $47/mo plus utilities.

Hey Dan,

We live in Asheville and have used AirBnB in the past.  As Pat stated above, there are fines on short term rentals that are pure investment properties.  The city is trying to crack down on how the constant influx of short term visitors is detracting from the "neighborhood feel" - I think it's pressure from the hotel industry. Anyway...

I've spoke with a number of other AirBnB and VRBO "landlords" and have found the following - During the summer/fall months, you can expect 130-150+ per night on a 3/1.5 in town on weekends, and possibly more around Thanksgiving/Christmas/NYE.  Consensus with whom I've spoken with is that VRBO produces a much more refined crowd - AirBnB tends to be "C" renters looking for the cheapest rate.  There has been little to no haggling on price with VRBO and almost constant haggling with AirBnB.  The place is almost always cleaner and better kept with VRBO.

Good luck in your search. If you make your way to the mountains, hit me up with a PM and we'll try to connect.

Jay

Hey Gang - Long time listener, first time caller here.

I'm Jay Chekansky from Asheville, NC and I'm currently neck deep in my first flip.  I love the community here and the opportunity and availability to learn from those who have done it before.  I'm working on adjusting my mentality from handy man to business man - I did a flip in central NY as a hobby a few years ago.

My primary focus is on SFR flips right now but I'm looking to add sources of passive income.

I'm always up to grab a cup of coffee to get to know local investors better - feel free to hit me up on here to schedule a meeting.

Hey BP!

This is my first post but I've been lurking/reading for a while now.  I'm grateful to have a such a great community to work with.

Here is my question(s) - I'm working with a guy who has a contract on a good fix/flip project.  He has the contract, but is not bringing any cash to the table.  Myself and another partner will be bringing money to the table to buy and rehab the home, while he will be investing his time/labor into the rehab. I'm looking for advice on how to best structure the legal side of things - should the money guys simply be hard money lenders to the guy with the home under contract? Should we request to be equity partners? What is the best route to ensure that our money is backed/secured - promissory note and mortgate?

I'm sure there are a lot of details that I'm leaving out.  Hopefully we can get to a solution that works for all parties involved and land a winning deal. I'm looking forward to hearing feedback!