All Forum Posts by: Tim B

TLC is producing a show "Flippers in Trouble" it will follow flippers as they to buy REO's in California , rehab and try (unsucessfully) to resell. After not being able to resell or rent, the properties are going into foreclosure AGAIN.

Maybe this will cause newbies to think twice before trying to flip houses!

Keep it simple - painting and decorating is where the profit is. If you have to calculate HVAC, plumbing, electric ect... buy another house.

Of course you could tear it down - then you become a builder not a renovator - and you have to take a pay cut!

Mr Scott, I like your style - anyone can do a kitchen for $50,000 but for $6500 - that's an accomplishment. My kitchens usually run $8000 including granite. Granite over laminate is a huge selling point - I use a company called "Nature Stone" they install UBA TUBA for $25-28 per foot - there maybe a franchise in your area.

Cody, this is a very challenging market to flip houses - the last thing you want to do is lose money.

Check out the blog "flippers in trouble in orange county".

You could renovate a house while you keep your current job (this is how I got started). Then decide if this is what you want to do full time - hopefully the market will improve over the next 12-18 months.

Many flippers have left the business and some are now choosing to buy and hold properties as rentals. I would suggest - start out slow - buy very CAREFULLY and gain some experience as the market stabilizes.

Never thought of a college rental as a status symbol - maybe my business card title will be "LANDLORD OF ACADEMIA"

Mike, your right, I am trying to find a reason to not purchase this property. I have carefully read everyone's input and appreciate all your valuable insights!

I'am a number cruncher and have researched college rentals for some time - they seem to produce significantly more income then a comparable nonstudent rentals. In my area (5 colleges nearby) they are highly prized by investors - as a result values in this area have held up in the recent downturn. This particular property is easily $120k under comps because it's an REO. That seems to make the numbers work as a rental or a flip.

Today is the day reckoning - I've made a counter offer and we will see what happens. Thanks again for all the information and I will keep you posted!

Cody, you had originally asked how many flips EXPERIENCED rehabbers do in a year/month. As an alternative business model I would suggest you be more selective - do fewer flips with greater profit per flip. How you chose to live your life is up to you - if you want to work 24/7 flipping houses - great! Some folks are trying to build empires - I suggest working smarter - working less and still making a very good living.

I've flipped houses for 20 years doing 2-5 per year, and can retire at 53. Flipping 20-50 house per year you will probably burnout in a few years.

My current renovation is an REO which I'm purchasing for $185k (after making 20 unsuccessful offers) comps show $320- $330k. After $25 to 30k renovation costs, should net $110k - $120k. These are approximate figures because I have not seen the house yet. I do not do the work myself, however you must know enough about construction to evaluate your contractors.

There are lots of these potential flips around the country - get out there and start renovating - learn the business - then decide how you want to spend your life - working 24/7 or living life!

Just because you choose not to do 20 renovations a year doesn't make this a hobby - just a SMART business!

Just gave my agent the counteroffer - wonder if the bank (seller) follows BP?

The college employes a full time liason to resolve student housing issues - before they become a bigger problem in the neighborhood. If students don't behave they answer to the Dean and can eventually be expelled - school is very SERIOUS!

Mark - what problems can arise from parents?

One neighbor is a Masonic temple/center - should not be an issue. I have parking for 4 cars. Some of these student would probably walk to campus - no car. This neighborhood is very familar with student housing and tolerate it. House will have 3 baths.

My fall back plan is fixup and flip house (50k profit potential) or even wholesale to investors.

Currently 3 other offers - going with mine (cash) even though it is substantially lower.