All Forum Posts by: Jim Welch

Hey Everyone!

Im trying to plan my business model for the next couple years and debating if I want to aim for flips or buy and holds. I have a day job right now I dont NEED cashflow but cashflowing will free up capital from my day job to reinvest. So both seem like a solid choice. 

So my question is what is typically harder to find good deals on? Im in the Dallas Texas market. I've done one flip and I've rented to tenants before so I have a bit of experience in both. So I feel the deciding criteria is which path I can manage to find the deals in. I plan to mostly work with wholesalers and the MLS as apposed to finding my own off market deals.

Thanks!
Jim Welch

Originally posted by @Paul Papamarkos:

Is there a link to this property ?

Im not sure bigger pockets policy on advertising listings but google 7850 Woodshire Drive Dallas Tx and you'll find it

Originally posted by @Bryan Devitt:

What did you spend $8k on in the bedrooms and hallway?? Drop the price to your break even number and hope it sells unless you think you can rent it for $1500 a month

 There were a handful of change orders but here is the initial bid: https://www.dropbox.com/s/kl6ukzs1rnzcdkd/Woodshire%20Renovation%20Estimate_Pdf.pdf?dl=0

 
Super Rough numbers: 

9k kitchen
2k bath
5k exterior
3k electrical
8k bedrooms/halls

Biggest costs were: paint, all new flooring (except garage conversion), gutted kitchen, new electric box.

This has been my first thread in the forums and am blown away by how helpful everyone is, Thank you!

Based on all this wonderful feedback I have some reno changes I need to make for my next flip. On this property I think I need to try one final significant price drop and if that doesn't sell it then refinance and turn it into a rental. I may go ahead and add appliances now since Id need to if it becomes a rental anyway.

Is there any search terms or a thread anyone can point me to that can help financially evaluate buy and holds? Im sure, like flips, there are rules of thumbs to determine if a home makes a good candidate for buy and hold. All my time has been in flips so this is a whole new world :)

appreciate all the feedback! Some of the reno suggestions were left off due to not wanting to overimprove the property but many of these ideas I will have to try next time. I’m skeptical at this point if some of these changes would get the property sold but if they would I’d be open to investing more in the Reno. At this point any creative ideas to salvage what’s looking to be a dud of a deal into something solid? Renting it out is an idea though I never considered doing buy and hold so I really have no idea how to evaluate if the property makes financial sense to do so with. I also considered refinancing the home and living in it myself for a couple years but on such a small margin I don’t know if that really makes sense either.

I’m consider doing a 2-5k reduction. I could go as high as 9k and just break even but that might be too dramatic of a response. 

@Account Closed it’s in south dallas. 7850 woodshire Drive. 

Dallas Texas Market
Purchase Price: 84k
Estimated ARV: 149k
Renovation: 30k
Current Days On Market: 55
Original Listing Price: 149.9k
Current Listing Price: 146k
Current Net Profit Potential: 10k

This is my first flip and I expected a week or two on market (maybe this is naive?).

Most of the feedback is they don't like the neighborhood. I've gotten a couple people who didnt like the layout of the home and a couple people who didnt like the W/D hookups were in the kitchen. I'm trying to determine if I need to just be patient, keep dropping the price, or make improvements to the home.

Im listing with an agent and we had a lot of showings our first week and a few showings a week since then. Moving the W/D is about a 2-3k (which is why I didnt do it to begin with) but if it sells the house I'll do it. I'll accept getting a pretty measly profit margin since its my "throw away" first flip. I do want to insure it sells and I dont lose money on the deal. Looking for advice! 

Im not sure if Im allowed to link to the property here so I'll avoid doing so to make sure the post doesnt get flagged.