Possible First Rehab

[shunyata]

Hi all,

It's me again, (I was previously vvolf27) for some reason I could not log in using that user name anymore, hence the new name. Any how off to business.

Bank REO:
$110,000, bank will pay $3,000.00 towards closing.

1846 Sq Ft Carport and detached 1 car garage.

4 bed/2 bath almost 1 acre of land.

Needs tlc, mainly cosmetic, going to do a full inspection in a couple days.

Paint, carpets, kitchen cabinets ($1500.00 with counter tops, known price), appliances ($ 1400.00 white, fridge, stove, over stove microwave with vent, $1900.00 for stainless, known price) baths need some love too. I figure from a rough estimate $25K in repairs.

ARV, good solid numbers I ran my own numbers and my realtor ran CMA we both come up with $175k to $180k.

I will have a much better idea of the repair cost after I do a full inspection in a couple days.

From all my research I do believe this property fits the fix and flip profile.

Asking price is 20% below tax assessed value of $138,500.00 add your usual 30% increase brings the resell value to $180K, thats not the only way I got the resell price. My price is based off of homes that sold nearby, equal bed/bath/sq ft, most sold within 2 months.

Any comments or help would be greatly appreciated.

Thank you,
Jason Kesselring
J & R Home Buyers,LLC

[SoldierInvestor]

Jason,

Without the real numbers from the actual inspection nobody here will be able to give you a total thumbs up. It sounds pretty good so far but youll never know until that inspector comes and goes through. You said nothing about the roof or if there was any leaks under the house. Because those areas could mean your sub-flooring could be rotting or even worse you may have to replace the whole sha-bang. Also if the house has a attic make sure you check the studs and the framing for possible rotting or bad spots that look like they could be a potiencial problem. Its hard to say because so many of my contacts have ran into these such problems that they have had to almost break the bank just trying to get through the inspection.

You work for a company I had seen. Is this your first cosmetic?


Zach

P.S I am new at REI, but I am not new to finding problems in a house due to working with alot of contractors.

[brianb_cobbres]

One the surface these seems to be an okay deal but I have a few questions.

How are you financing the purchase and rehab?

Will you be using a realtor to resell?

How long do you think you will have to hold the property including both the rehab and resale?

[shunyata]

Zach,

Thanks for the reply.

Roof looks good replaced 4 to 5 years ago, no visible sagging or uneven spots. Floor is a solid slab of concrete. The bank had an inspection done to the house, I can get a copy of it for $100.00, I plan to go out there with my father (alot more experienced working on and in homes than myself, also a silent partner) and spend a couple hours with my check sheet going over the place and will also request a copy of the inspection. Now another investor in my local club is also a home inspector, I thought about having him inspect it, but I would also key him into this possible rehab and create competition, maybe (not sure if I should take the banks, inspection or have one done myself). I did not notice any water stains in the ceilings, again I believe the roof to be in good condition. Not sure about plumbing or electrical as of yet. The LLC is mine that I set up for my REI company. This would be our first rehab, technically. I bought my old home in Miami, from my wifes parents, put about 7K into it and sold it 2 1/2 years later for a 100k profit, split 55/45 when we divorced :thumbup: So I consider that my first dabble in the potenial of realestate.

Brian,

Finacing via, private lender and our own money.

Project time 2 months or less, really alot of cosmetic stuff, until I do a deep down inspection anyway. If anything is major I will turn on my heels and march right away. I am not here to lose money and I don't have to buy a house tomorrow.

By using Dan's suggestions from his book I will try to sell it myself, if not I will work a deal out with my realtor to do a 3.5 % commision with me since they are the ones listing the house for the bank (in house only no outside agents from other companies, another investor in my club does this). BTW they just got this house and it has not been officially listed yet. She called me right away so I could go look at it before it was put on the MLS. I expect to price it to sell, homes sell quickly where I am at if they are priced right. A friend sold his home the next day after it went on market. Homes in this area usually sell within 1 to 2 months, again it will be priced to sell. I want in and I want right back out, no fuss no muss.

I will report back once I get a full inspection done. I will keep you all up to date on this possible flip. Again I look forward to running things over with you all. I do intend to do a lot more research on this property before putting an actual offer in. I want to win and with a team like this one, how can one not succeed? :SM023:

Thank you,

Jason Kesselring
J & R Home Buyers, LLC

[Debbie]

I don't mean to be off-topic but I couldn't resist to say----Cute Kid!

[shunyata]

Debbie,

Thank you very much! My pride and joy. I am doing all of this for them to give us a better future.

If that is your daughter, she's cute too... nice, smile and I like the hat.

Edit: I see from your profile she is your daughter. Both are very cute, congratulations!!

[shunyata]

House is lost, someone else bought it before I had a chance to make an offer. Hard lesson learned, if ya find something good, don't hesitate...

On the plus side, I have three more homes to look at tomorrow...

[AIR]

House is lost, someone else bought it before I had a chance to make an offer. Hard lesson learned, if ya find something good, don't hesitate...

On the plus side, I have three more homes to look at tomorrow...

OHHHHH BABY I know the feeling! You better believe Monday morning I was FURIOUS!!!! I found a gem, my new realtor who is EXCELLENT was set to meet me there in the AM and if all went well with the walk through we were going to write up a bid. She calls me as im on the way...house was sold that morning. But no need to worry I was back at it tonight, found three potentials, 2 are in tough areas though hence my post about section 8.

[shunyata]

AIR,

Sorry I didn't get back sooner. I have been working and doing repairs on my own home. Doing a little remodeling, about 10k worth. Anyway, it was a real bummer because I knew this house would pay off. But my search my be close, another Investor in my REI club, just put a house under contract and the numbers seem good.

Purchase 60k,
He estimates repairs to be 30k, I will do my own estimate sunday afternoon, he is also a lic home inspector.
Checked the comps in the area ARV 120k to 130k.

Going to do a walk through on Sunday afternoon.

He wants to assign the contract and do a quick deal and doesn't want to rehab it. He does most of the work himself and getting worn out.