All Forum Posts by: Pennie Heath

Haven’t used hard money yet but did use a conventional loan. We used a Heloc on our primary residence for the money to renovate.  When we sold we paid our Heloc back down to zero and the loan off of course. Now using the Heloc again to renovate 2nd flip but we did so well on the first that a family member asked to invest and we didn’t have to get conventional loan.  Good luck. 

what they said. 

Yes it all depends on what the comps are in the area. What Do the houses that are renovated sell for in that area or neighborhood? How do they compare to yours? That is the only way to determine ARV.

ARV is 300k, it's a 2000 sf 1910 Craftsman in Memphis, so I want it to be nice but I can't afford to put super high end cabs in. PP is $185k and rehab budget is $40k. Kitchen budget is $12k.

Sloppy work by that agent. 

I've read all the cabinet threads but some were old so I'm asking you guys.  We used Ikea cabinets on our first flip property and really, they were nice!  Now, I am looking for better cabinets than Ikea, but still not expensive ones, and the RTA ones don't look to be as nice as the Ikea ones.  I got some door samples from Lily Ann and the smell is extreme!  Formaldehyde?  What do you guys do for cabinets?  

It is closing day tomorrow for our first flip!  We closed on the property 7/15/18, had to wait a month to get the renters out (their lease was ending), so 7 months from purchase to close but we had a few obstacles.

Purchase Price was $84K

Rehab and Carrying Costs  $35K

Sales price  $189,500.

We got a mortgage on the property and put 20% down (through HELOC). We saved and scraped for money for renovation and did get a loan from family to help at the end due to the fact that the day after we closed my company closed and I lost my job. I immediately started working again but for myself, so now I no longer have a W2 so doubtful I can get another loan for awhile.

I listed it myself on Flat fee MLS for $359.00 and we got an offer in 24 hours for full price. I wish we hadn't taken it because we got an offer for 4K over asking the next day! In my spare time *joke*, I've gotten my RE license, primarily to help us with our own investments. I don't intend to change careers, we are both working FT but from home and with great flexibility.

 So we learned some things.  First, your help is everything and we need new help for our next project.  Our GC turned it over to a sub to run and they were great for about a month and then started taking other projects and not showing up.  They cost us at least 3 weeks and much aggravation.  You get what you pay for and they were what we could afford at the time.  We hired the guy with the lowest bid to paint and repair the exterior and he did a terrible job.   We did what we could ourselves and did find some valuable help, i.e. an electrician, a hardwood floor person and a concrete person that were awesome.

We are looking for another property but may need a HML since I don't have a W2 anymore! We are in Memphis if anyone has any suggestions in that respect.

Before

After

Why are those pics such different sizes??  Oh well.  

That's our story,

Pennie

Our first flip went well and we got a full price offer (one one over) within 24 hours of listing.  We financed it ourselves with some loan from our parents that we will pay back at close.  I have my eye on a house in Cooper Young but won't be able to finance the project ourselves.  Thoughts or advice?

Thank you!!  I passed the test today.  Whew!  Our flip property is also within a week of being ready to list.  I guess I will reach out to a few and see.  Thanks again.