New Flip

realestatehound · #1 02-10-2011, 03:37 AM

I will close on a new flip tomorrow, but I have already started on it. I have bagged up 25 large trash bags of junk and have about 2 truck loads of big stuff to get out. I also have to remove some furiture which I will sell. I have already just about got all the drywall repaired and will be ready to start painting by Friday. My plan is to put a closet in the family room in the basement to make it a 4 bedroom or they could still use it as a family room because I'm putting the closet behind the door and I am going to install a tub and shower unit in the bath downstairs to make it a 3 bath home. I expect to have the inside finished in 2 weeks and the weather will determine when I can get the exterior doors and deck finished. As much snow as we have had this year it may be May before I can finish the outside, not. I also have to put up a garage door opener and get a remote for the other one. This one is an easy one, mostly cosmedic so 1 month and it should be on the market. If you want I will try to post my progress on here if you would like. They just listed a house right across the street for $154,000 and they are almost identical in size and I plan to put mine on the market for $142,500 as I think their house will sell mine.

flippinout · #2 02-10-2011, 04:43 AM

It sounds like you will be making good progress on this flip, and yes, please do keep us posted on your progress. In fact, can you do some before and after pictures with your flips? It would be so nice to see what you take from frumpy to wonderful.

Adding the space that could be turned into another bedroom is a great idea plus having an additional complete bathroom will be a real plus when it comes time to sell.

homealone · #3 02-10-2011, 04:52 PM

Sounds like you have your plans nailed down. I know I would love to hear about all that you do to the home and pictures are really a plus!!

I hope that your flip goes along smoothly with out to many delays or problems.

Adding in the extra bedroom space and the bathroom are going really help to sell the home quickly. Everyone loves to have space not only for the family but for visitors as well..

flip_it_fast · #4 02-11-2011, 02:58 AM

Thats awesome Hound! Congratulations! It sounds like you are investing in a great piece of property. Not a whole lot to do. Get it done and sold quick for a tidy profit.

Please don't feel obligated to answer my question if you are uncomfortable but I was wondering what you paid for the property?

Do you stage the houses you flip when you put them up for sale? If so you might want to hang onto the furniture at least until the showing. Maybe even use it in your next flip!

I hope you have quick success with this one. It sounds like you will.

realestatehound · #5 02-11-2011, 04:31 AM

I don't mind telling you what I payed, I'll even do one better, I'll tell you what it appraised for and keep in mind that my appraiser is always 5% under what I think they are worth. I payed $90,000 and it appraised for $139,900 when I finish. I plan to spend about $7,000 on it including floor coverings and appliances but no more that $9,000. Today I took all the plastic pieces off of the outside corners, and it was a job. I went over all the drywall and the corners and will sand them tomorrow. It should be the last time on drywall, but I may have to do a few spot again. I think that this is one of the best selling points as it is what everyone see's. I hope to have it painted by Thursday. I have to wait until it warms up to finish the drywall in the garage. It may take a little longer to get my painting done, because if it gets as warm as they say I will probably work on the outside. I have some vines to cut and exterior doors that need painting. I have to play the weather this time of year.

homealone · #6 02-11-2011, 03:12 PM

I am glad to hear that all is going well so far and I hope it continues that way.

I have a question for you though. Have you ever lost on a flip yet and if you have what happened that caused you to lose on it?

I know I have read about several people who just jumped into a house flip with out knowing what they were doing and ended up losing a lot of money and time. It is a shame that this happens but it is their fault.

realestatehound · #7 02-11-2011, 07:37 PM

No I haven't lost on a flip yet, but I have had one that I bought at Master Commissioner sale that failed to close because the foreclosure attorney failed to find a lien on it and I did loose about $750 in my attorneys fees and appraisal fees. The one I expected to close on today didn't close either but my attorney thinks it will close. It had a second mortgage on it and we had an agreed amount with them and instead of waiting until we closed they turned it over to a collection agency and now we have to get them to ok the sale. I guess that's just part of flipping you have to deal with all kinds of idiots at these banks.

badmomma · #8 02-11-2011, 10:06 PM

That is a sad fact and indeed the reason that the market is in its current condition. I hope that you close this deal quickly and that you make as much money as you want when you sell it.

It sounds like you are going to make a profit on this one and that would be wonderful. It also sounds as if you have put alot of work into it already so one way or another someone is gonna owe you.

homealone · #9 02-12-2011, 03:01 PM

I am glad to hear that you have never lost on a flip.Though it is a shame that you did lose almost a grand in fees for your attorney. Though like you said there are a bunch of idiots that you have to deal with constantly when flipping a house.

I too hope that you close quickly on the new flip and that it all goes smoothly and quickly for you.

Keep us up to date on how things are going and what your doing. Maybe we all can learn something.

realestatehound · #10 02-14-2011, 03:01 AM

I've always known that flipping houses is like playing poker, you win a few and you loose a few. I thought that Friday we were closing on my latest flip, but to my suprise the second lien holder had turned it over to a collection agency and now we are trying to talk to them and get it closed. We can't figure out why Bank of America would do this after making an agreement with us. But we will have to see what happens next. The worst that can happen is that I don't get the house and loose about $800 in the process. But you can't give up I have already found another house and I'm going to look at it tomorrow. If I like it I'm going to make an offer on it. It just sold at Master Commissioner about 3 months ago. I still haven't figured this one out. They bid the house in at $119.500 and have just put it on the market for $81,900. It is worth about $125,000 after it is fixed, so depending on how much work needs to be done I will offer between $70,000 to $75,000 and that should buy it. It's really funny because I love to play porker and I love flipping houses. I know what chances I'm taking before I ever make an offer on any house. I guess that's part of the fun.