All Forum Posts by: Ryan Sparks

My understanding is that there is no code that says knob & tube wiring must be replaced. Only if the insulation of the wiring is bad. It cannot be grounded & some buyers may be turned off by such. Can also be difficult to connect new fixtures (can use junction boxes in some cases to convert).

St. Louis-Metro area has 89 different municipalities; thus often times it comes down to the individual township and/or inspectors' interpretations. This particular project is in south St. Louis City. Hope this helps!

Good insight Kyle! I received bids between $4,200-$5,700 for water service update (Replace 5/8" lead w/ 1" copper & tap into main line). Have asked my local Alderman to look into possiblity of trinkle down from infrastructure bill to help local investors offset such thru grant, tax rebate, etc. We shall see.

Good point on NOIS! My understanding is that it eeds to be filed at least 45 days prior to closing  & it is valid for up to 6 months. Title company is helping me w/ that activity on this project, but I handled that personally w/ STL County for my last flip in Mehlville.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $183,400

Converting historic duplex to single-family home w/ 4 BD, 3 BA. Remodeling kitchen, bathrooms & flooring. Updated electrical, HVAC, plumbing & water service. Add rear entry w/ back decking/stairs. Goal is for rehab to be complete by end of Feb/early March to put on market.

What made you interested in investing in this type of deal?

Close proximity to my personal home in a desirable neighborhood w/ supply shortage.

How did you find this deal and how did you negotiate it?

Thru a local wholesaler.

How did you finance this deal?

Personal cash & HELOC.

How did you add value to the deal?

Acting as GC/project manager, listing agent & grunt laborer. Added 2 bedrooms including master suite w/ 3rd bathroom.

What was the outcome?

TBD.

Lessons learned? Challenges?

Beware of old knob & tub wiring along w/ galvanized piping/ductwork. Very tedious demo & repair work when dealing w/ plaster walls. Check water service update w/ City of St. Louis. Always get 3 bids from contractors.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

KW Saint Louis.

Investment Info:

Single-family residence fix & flip investment in Saint Louis.

Purchase price: $208,000
Cash invested: $85,000
Sale price: $327,000

Cape Code meets Farmhouse. 4BD, 2.5BA single-family residence. Purchased home through a wholesaler. Took 4 months to complete extensive rehab (bath & kitchen updates, added office, refinished hardwood floors, paint, landscaping, etc.). Sold in 5 days over list.

What made you interested in investing in this type of deal?

Career pivot, and desire to flip a house & bring it back to life for the next family.

How did you find this deal and how did you negotiate it?

Networking & wholesaler.

How did you finance this deal?

Cash & HELOC.

How did you add value to the deal?

Updated kitchen & baths, added 4th bedroom & office space. Also acted as the listing agent.

What was the outcome?

Sold in 5 days over list. Closing on 9/7/21.

Lessons learned? Challenges?

Deals are made or broke during the acquisition. I paid too much to acquire the property and my rehab budget was blown ($25K over). In the future I will use the math to remove the emotion from my decision making.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

West Community Credit Union for HELOC.