All Forum Posts by: Michael Lerch

That's my next step @Andrew Cordle is to see what my recently sold comps had and what sold quick and what didn't. It's something I knew I had to do, but wasn't like "Oh... that's my answer duh!" Lol. 

ARV is $135,000 and is the avg selling price for the area. I was hoping for $140,000 but my realtor says to shoot for a selling price of $130,000 or lower so now I have to adjust my repairs to reflect that. As-Is the house would sell for $115,000 to $120,000 as other houses I've seen there were in similar shape sold for that much.

Got the contractors part nailed down. Investor report ready. Just need the funding now. 

Working on my first flip here. I had to make cuts to my repair budget because my Realtor says it's a buyers market and not to go too crazy on the rehab. Just fix it up nice enough to put on the market at a low price point where I can still make money vs going all out and having sit for 6 months and breaking even because most likely they won't pay my asking price.

This leaves a bunch of questions because I'm not sure what to do with some of these repairs. Let's start with the kitchen!

Kitchen: You can't really see it, but the appliances are older and beatup. I wanted to replace with all stainless, but because of my cuts I'm looking at either all white or all black... or is this one area I shouldn't skimp on? I'm going to paint neutral colors throughout the house. The cabinets are "ok" but do have some scrapes on the doors. Are these replaceable with the same type of cabinet door? Counters are Corian. Now for the Bathroom! 

Bathroom looks decent, but it's handicap accessible... the room down the hall is as well. I'm thinking about walling it up on the one side and making it a one door. Has anyone run into this and done the same or left it alone? I'm worried it may be a negative for most buyers.

Basement:

I'm fixing missing panels and holes in the wall, that part is easy for me. The carpet is pretty messed up. I'm faced with getting it cleaned or replaced. I don't know how clean these come out with a good carpet cleaning service. As you can see it's a good sized finished basement, but if I can save costs with getting it cleaned that would be best. What do you think? 

Landscaping:

Here they have a nice sized deck that needs a good wash and stain. Seeing as by the time I get this on the market it'll be mid September going into fall. With that in mind what landscaping should I do? I'm planning to cut the grass, fill in holes (dogs like digging), but I don't know if I should plant anything or put down new mulch. Does anyone put down new mulch in fall? I guess it couldn't hurt. Also, with fall/winter coming and that deck should I just power wash it, or go all the way with staining? I'm trying to tell myself I can get away with just a good deck wash and let the buyers deal with staining it, but it could also be a great selling point too. 

Thanks!

I have a rehab deal under contract that I'm attempting to flip myself. I'm looking for some good contractors around the Battle Creek MI area and private / hard money lenders in the area as well. 

This is not in downtown / ghettos. It's in a really nice suburb south of Battle Creek near I-94.

frick... Say it ain't so

Unfortunately the investors role was simply providing the funds/loan so the seller could buy the house. The property is listed with an agent who might not be so welcoming to a lease option or other type of seller financing but could be worth a shot.

What if the investor bought the property and then sold it to the person on a land contract with similar terms? 

Don, are you saying that this is impossible now because of Dodd Frank?

Just throwing this out here since I can, and I'm not looking to make any money on this.

A potential tenant-buyer I had a few months ago interested in one of my lease option deals decided to work with a different investor to buy a house. They are looking to close this Friday ( 6/27/14) and their investor suddenly backed out. They're all packed up ready to move. This was the deal she had in place with the other investor

$84,500 purchase price (valued around $99,000 ) $5000 down, $650 mo payments at 9%
interest and a 5 year balloon.

If anyone is interested in something like this contact me and I'll put you in touch. Again,  I am not benefiting from this at all. Just paying it forward.

I hear ya Joel but I'm not trying to leave any agent hanging and not close. If I get it for what I'm asking it'd be pretty crazy if I didn't get a cash buyer for it. I've learned the hard way with offering too much in the past. Maybe I'll have to forego REOs. Trying to get another source of deals because my area is pretty saturated thanks to guru targeting so I certainly can't fault the agents for being gun shy.