All Forum Posts by: Jin Lim

Introduction:

So I'm a wanna-be house flipper and I've been doing a lot of reading, analyzing potential deals, and networking around my local area. Out of all of those things, networking is definitely my most favorite activity.

I get to meet new people and talk about something I'm passionate about.

Lately, I've been tagging along with some more experienced investors and have been getting a "behind the scenes" look into the whole process. So now, I'm going to start writing about the things I've learned!

For this post, I'm going to write about an inspiring couple who just finished their FIRST renovation of an amazing beachfront home in Hawaii!

Meet the Investors:

Alex and Delila started investing in real estate back in 2018 on the beautiful island of Oahu. Alex has a MBA and works full time as an accountant for a non-profit. Delila has a Masters of Arts degree and works as a Home Health Occupational Therapist.

Both Alex and Delila are also real estate investors who plan on flipping even more properties in 2019!

Ewa Beach Surf House

Quick Details

• 1,064 square feet of living space
• 4,043 square foot lot
• Two bedroom, two bathroom duplex
• Beachfront property with direct views of Diamond Head and gorgeous sunsets

Before and After Photos:

Investor Interview

Delila's friend became a realtor and presented the property to Alex and Delila! The property was listed on the MLS for over 240 days.

Originally listed at $740k, the couple placed their initial offer at $640k. They accepted the seller's counteroffer of $695k! The purchase was financed through both hard money and private money lenders.

A whopping $200k was the original budget. Why? Because they planned on converting the 2/2 duplex into a 3/3 single family home with a new garage! The ARV would've been at $1.15m. However, they ran into a serious issue when applying for construction permits: Hawaii's shoreline setback rules prevented them from doing any kind of new construction on the property within 40 feet of the shoreline.

With this new information, their entire plan took a HUGE hit. With the property already purchased, they needed to come up with a new plan. Fast.

Since the shoreline setback rules doesn't say anything about renovating existing structures, that's exactly what they did. With a budget of $113k and new ARV at just under $1m, they were able to beautifully renovate the property.

The property was originally listed in December 2018 for $999,999. However, the current list price is now at $899k.

Due diligence! Alex and Delila started on the property thinking they could raise the value of the home by making some major changes only to be stopped dead in their tracks due to some obscure law regarding new construction near the shoreline.

Conclusion

I think Alex and Delila did a wonderful job on their FIRST flip! Yes, they ran into an issue that completely derailed their original plans; and yes, the property is still listed even after a price reduction. But again, this was their first flip. They're still set to break even, if not profit a little. The value in the lessons learned on their first project? Priceless.

What was your first flip like? What challenges did you face? What lessons did you learn? I want to know!

You could also watch the walkthrough and interview on YouTube!

@Paras Gupta ,

I'll be back in the DMV area in mid-February. Too bad I won't be around for this meetup! Would love to connect and know when you host your next meetup! 

Thanks,

@Christopher Hauser ,

I'm moving back to the DMV area mid-February! Too bad I won't be back in time for this month's meetup. Would love to connect and know when your next meet up is!

Thanks,

@Bobby Montagne ,

I'm moving back to the DMV area from Hawaii in mid-February. Wish I could attend this meet up to start networking. Would love to know when you are hosting your next meeting!

Thanks,

@Nick Macklin Sent you a colleague request!

@Russell Brazil Then I could always go the usual buy in cash, rehab, refinance (VA loan), rent method? And thanks for the recommendation. I will look him up.

Hello,

I'm looking to move to Hawaii in a few months and I'm starting to look at potential properties to purchase in the Laurel, MD area. Looking to take advantage of my VA loan to purchase a minor SFH fixer-upper. Planning on living in the basement and rent out the upper floors.

With that in mind, I'm looking to start building my A-team because I'm not looking to do just one flip/BRRRR!

Looking forward to networking with you all when I get out there!

Thanks,

@Mike B.: Why do you say that? A8s are gorgeous cars and I wish I had one myself! Haha

Or any coupe/sedan that’s V8 and AWD... *looks at new BMW 8 Series*

Before my REI journey, I had JUST bought a brand new 2016 Subaru WRX Premium. It was my baby.

Being in the military, however, I was constantly being deployed overseas for six months out of the year. I figured I was just wasting my money paying for a car I wasn't even driving.

I paid it off as soon as I got back from my first deployment and I'm now driving a 2011 Toyota Corolla. As for the rest of the money? I just slapped that back into my savings account. Still waiting to pounce on my first deal.

@Chad Quillopo It was great meeting you for the first time! Hope to see you at other meetups around the island.

I record the first episode TODAY and the second episode tomorrow! I can't even express how excited I am.

@David Pere

Thanks for your suggestions! I do plan on having the investors introduce the basics of the property and also have them talk about their favorite features and what not. Maybe I can slip in the "best bang for the buck" question somewhere in that portion or during the interview portion!