All Forum Posts by: Susan Lisman

I have my first flip out on the market right now.  i have been checking in to "views" on zillow as a way to gauge basic searching and I am wondering if the other website also have this function.  I have not found how to do so.

Also - I did search the forum, so I apologize if this was asked or asked in a different way recently.  If so, can someone link that discussion?  Thanks for your help!

i should note this is more for aesthetics and not a heat source

Hi Everyone -

I am in the middle of my first flip and I am trying to determine what to do with the fireplace area - if getting an electric fireplace is worth the investment

Right now, it is a non-functioning wood burning fire place.  In order to make it fully functional, it would cost me too much in masonry cost - so I have a few options.  I am framing out the fireplace with new drywall and will tile - but I am not sure if I should put in an electric fireplace.  I am not fireproofing the area to the standard of a working wood burning fireplace - because as I said it is not functioning.

Purchase Price - 180k

Rehab Cost $60k

ARV $340-350K

So basically - do you see a good return for installing an electric fireplace - I believe it would cost 500-600 to purchase the appropriate piece.

Hi Everyone, 

I am closing on my first property tomorrow and i am being overcome with waves of excitement and nausea - luckily the excitement is winning.sort of hoping this is one hurdle I dont have to jump.

Just wanted to touch base with everyone here - I am buying the house in my LLC name - I assume all utilities should be in that name as well, right? I feel like this is a foolish question, and I know the answer, but I need to check anyway.

Also - thanks for the analysis everyone.  I was hesitant on the work v reward aspect of this proeprty and it is nice to see that my instincts were not off

@Christopher Phillips - I think $1700, maybe $1750 would be the best.  This particular house is close to everything, but not next to anything - if that makes sense, does not have its own parking either.  I cannot add in an additional bath or bedroom either, and the ceiling in the basement is too low to finish, even if I wanted to.

@JD Martin - I was working with the assumption that I would find a refinance based on the appraised cost.  I would pull my money back out of it that I took out through my line of credit, return the line of credit, and have it to use again.  I got the $165K with a purchase price of $130K and a reno budget of $35k.  

My agent recently connected with an agent who bought in the same row of houses - he paid close to his ask which was $152k. He anticipates a $35k reno as well with an ARV of 220, but I still dont really see the comps in the last 6 months to support it

I have not made an offer on this property.  I do not think that the owner is willing to come down off of her price or is even really aware of the current state of the house as she is still looking for tenants with a leaky moldy tub and pest issues.  I also dont like the idea of my money being tied to this property over the next 6 weeks, waiting for the tenants to vacate and not being able to find a better deal.  At this time, it does not seem worth it to me, either, for the limited cash out. 

Hi Everyone, 

I am deciding whether or not to put in an offer on my first brrrr - and I would love some advice.  I already did an inspection (a bit backwards, I know) and I have literally run the brrrr calculator so many different times I am sort of losing my mind and losing track - can someone offer advice on this project.

Property: 3 bed, 1 bath asking $159,000

The property is currently rented at $1400 a month 

Taxes: approx $2400

All of the systems - heat, electric, air were in good order

Inspection report: 

THe following based on professionals

water in the basement - may need a french drain/sump pump .  Ballpark figure $4500

limited asbestos/mold (bathroom only) $3000-$5000 (from environmental clean up company - would include bathroom demo)

chimney work - $300-$1500 depending on state of liner (assuming $1500 for rehab purposes)

pest control - $513 for year 

Oil tank removal - $600 fixed

The following are estimated costs based on research and not professional estimates 

kitchen flooring - $1000 - $1500

Concrete outside - $1500

replace carpeting/flooring: $1500

additional masonry work - $2000

Painting: $1500

Misc - $1500

New appliances: $1500

Buffer: $5000 - $8000 for misc.

I am assuming insurance costs of $1500 per year

My plan:

Offer $125-130K

I believe I will be able to rent it for $1700 according to comparable rents in the area

I will be accepting a vacant property - current lease ends June 30

I will be financing this deal through a line of credit at 3.5% - so a cash buy and money for reno

I will then refinance my invested money - approx $165,000 assuming a rate of 4.25% freeing up my line of credit for the next cash purchase.

ARV expected at $185000-$200000

I am reserving - 5% for vacancies, 5% cap ex, 5% repairs and 6% property management (which I am doing myself)

Advice???? Am I over or underestimating repairs? 

I have it cash flowing about $205 a month

Thanks Steve.

As this is my first project, my husband and I have decided to bring in an inspector before moving forward to help determine the cause of the water.  While I wont usually get a pre-offer inspection (except for a foreclosure or short sale), I think as I begin this process the education I will get from it before making an offer will be invaluable going forward.

If you have a recommendation for a particular waterproofing company in the area that you have experience with, please message me.

Thank you! Very helpful!!!