All Forum Posts by: Jeremiah Noll

Our last meetup October 7th was a great success and we are looking forward to focusing the discussion around two topics at this next one. 1. Real Estate Development of affordable long term rentals. 2. Vacation Rentals and the current market through AirBnB. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $87,000
Sale price: $225,900

Foreclosed log home being marketed very poorly gave us the opportunity to add value.

How did you find this deal and how did you negotiate it?

I had a buyer request a showing on this poorly marketed foreclosure. The agent had taken poorly lit photos of the property before it was cleaned up and the bank selling it did not care to make simple improvements which would have had it sold much higher. That buyer decided not to make an offer, but I knew some investors I could pitch the deal to. It was for sale at $99k and we negotiated them down to $87k.

How did you add value to the deal?

The house is a true log home which had 1 actual bedroom and 1 and a half baths. We converted the half bath into a full, closed off a section of the loft as a private bedroom, cleaned up the walls, added stone to the brick fireplace, refurbished the cabinets, replaced the counters, installed new flooring and lights throughout, custom build a porch swing, some landscaping, and then operated the property as a vacation rental for 6 months.

What was the outcome?

The property was sold as a turnkey vacation rental and still operates to this day in the same form. They have many 5 star reviews.

Lessons learned? Challenges?

Finding a buyer with a lender who will accept a log home can be challenging. You never know if the appraiser will be competent enough to compare the house to other log homes or to just regular stick built construction. We were fortunate to get this one sold to the first buyer. However, if we had held it for another 6 months we would have had another $50k in appreciation because of the quick rise in market values.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $65,000
Cash invested: $160,000
Sale price: $219,000

Found this deal on market because a buyer made a low offer but did not accept the counter. Partnered with an investor to renovate and resell this house with a very rare view in this area. We created a one of a kind house but were ultimately held back significantly by the appraisal.

What made you interested in investing in this type of deal?

I think the best flip opportunities are present when there is something special about the location or style of the house. This one had a fantastic view.

How did you find this deal and how did you negotiate it?

A buyer offered $60k and it was countered at $65k. That buyer couldn't see the upside, but I could. So after he rejected the offer I found an investor to partner with to take this deal down at $65k, cash, as is.

How did you add value to the deal?

We added a florida room and deck in the rear to capitalize on the awesome view, then proceeded to fully replace the kitchens, baths, and convert a family room into a master suite. New roof and then after hitting the market it was clear we needed some curb appeal so we improved the landscaping.

What was the outcome?

We had a full price offer at $275k, but the appraisal came in at $181k. We lowered the price to find a new type of buyer and a few weeks later found one at $219k and the house appraised at $219k.

Lessons learned? Challenges?

Many appraisers comp with only the same style and cannot put value on aspects as buyers do. The magnificent view was valued by the previous appraiser at only $10k. Nobody who knows the market would do that, but appraisers are held to standards which restrict them from determining actual market value. A combination of these factors led us to losing $55k of profit on this flip.