All Forum Posts by: Martin Peter

Here are some before pictures:

This is the "front" of the house.  It really faces sideways.

Here's the kitchen.  Complete gut job for it.

Bathroom will be gutted too.

New floors going in here.

Gonna put some floor down on this side of basement.

@Casey Miles the 75% was more coincidence than anything. I was thinking 105 initially with a budget closer to 75 than 85 for all in. The exterior issues caused the overage but the finishes and market allowed for a higher asking price.  

Got an offer this morning and have countered. Should be under contract this afternoon. I will come back after closing to post final numbers. Thanks for following me on this one. Flip #3 is underway and I have a new thread for that. 

On the surface yes, the numbers may appear to be tight, first my ARV is conservative. Second, closing costs are closer to 6% in my area. This is a cash deal and holding costs are minimal but included in my Rehab numbers.

The major reason for the cost overruns in my last house was that there was a foot of snow on the ground and there was quite a bit of exterior work that needed to be done.  The other factor on that was the first budget was based on my numbers and not the final bid from the contractor.  This budget is based on the bid from my contractor with an allowance budgeted in.  

I am very confident that the numbers will work out to my benefit.

I enjoyed chronicling my last journey for you all here so I will do the next one as well.  This one is on Cuyahoga Falls, OH just like the last a few blocks away.  This is a 950 sq ft. 3BR/1Ba ranch with a full basement, located on the corner of 6th and Portage Trail. The house is in very good condition, it needs new flooring throughout, complete kitchen and bath remodel, the two smaller bedrooms are getting new closets (currently no closets in them, so I guess they aren't technically bedrooms), a little work in the basement (it's somewhat finished and I just want to spruce it up), new windows, new entry doors, and a new concrete pad in the garage.  I'm sure we will find a few other small things along the way.  

Here are the vitals:

Purchase Price: 39,000

Rehab Budget: 24,000

ARV: 85,000

All cash.

I'm hoping to have this one be ready for the MLS on May 13th, 3 weeks from today. I know that is very aggressive, considering my 5 week timeline on number 2 turned into 8. I'm confident in it this time though, I have also given financial incentive to my contractor to get it done in that time so we shall see. They have already started the demo and should have most of it done today or tomorrow.

First obstacle to overcome is an issue with the water line coming into the house.  Thankfully that is the cities responsibility and not mine.  They will be back out tomorrow to more accurately diagnosis the problem. I will post pictures later today.

@Greg Wright the house officially went on the market today. Hopefully it's priced right and sells quickly. 

Third is cash too.  If I buy a 4th before the second closes I will need to secure some funds.  I have some private money lined up though.  I will probably start a thread for number 3 here shortly. 

So this house will finally hit the market tomorrow.  I purchased it for $36, put $50 in and the list price is going to be $115.  My realtor thinks that it should go quick, I hope so too.  I will get some more pictures up tomorrow.  I think you have the jist of most of it though.  Closed on number 3 last Friday, the crew is moving straight over there in the morning.  Now to find number 4. 

A few more pictures. 

Closet encloses furnace, hot water tank, and far right is where washer and dryer can go.  I am not including.

Front of the house with the stone.  

So here's the latest.  The interior is just about down, two toilets need to go in this morning.  I will be walking through this evening to let my GC know what I still see as an issue.  Hopefully those items will get wrapped tomorrow.  On the exterior, the garage and shed need painted and a few landscaping items need wrapped up.  Just about a quarter of the front stone still needs to go up.  Should be on the market Thursday.  Brokers open house next Tuesday and then a true open house on the following Saturday.  Here are some pictures of the almost finished product.

This is one of the downstairs bedrooms, the other is the same.

Master Bedroom, this is one of the unfinished spaces in earlier photos.  I'm really happy with this room.

Front room.

Like everything in real estate it just depends.  Sometimes the banks put the price out there ridiculously low looking for multiple offers.  Other times they put the price at what they think is a fair price for the state of the property.  Worst is when they set the price just below market as if the house was in good condition. 

I have two offers out on houses that were priced well below where they should have been.  After my initial offer on both I was asked for my final and best offer.  I am under contract on a house that I got for 20% off the asking price.  I've also bid on houses that the bank has stood firm on their asking price. 

As always run your numbers and bid appropriately.  If your numbers tell you that you need to pay no more than $10k below asking then that's your max bid.  The banks don't take anything personally its a business for them too.  Good luck.