Slimpsy1647545505 Posted July 6, 2007 Report Share Posted July 6, 2007 so i'm getting into real estate. . . and got this cheap auction house. . . here's what i've done so far to it. . . price paid: 15,000 total invested for fixing: 5,000 estimated appraisal after fixing: 55,000 total profit: 35,000 BEFORE AND AFTER PICS front of house when purchased http://pic20.picturetrail.com/VOL1469/5630295/17052110/264051029.jpg front of house now http://pic20.picturetrail.com/VOL1469/5630295/17052110/264051806.jpg living room before (yes all the walls and floors were spray painted) http://pic20.picturetrail.com/VOL1469/5630295/17052110/264051033.jpg current progress http://pic20.picturetrail.com/VOL1469/5630295/17052110/264051790.jpg http://pic20.picturetrail.com/VOL1469/5630295/17052110/264051802.jpg kitchen before.. http://pic20.picturetrail.com/VOL1469/5630295/17052110/264051031.jpg kitchen progress http://pic20.picturetrail.com/VOL1469/5630295/17052110/264051787.jpg bedroom before http://pic20.picturetrail.com/VOL1469/5630295/17052110/264051030.jpg bedroom progress http://pic20.picturetrail.com/VOL1469/5630295/17052110/264051795.jpg Quote Link to comment Share on other sites More sharing options...
Mensan Posted July 6, 2007 Report Share Posted July 6, 2007 Where did your $5k go? Quote Link to comment Share on other sites More sharing options...
Slimpsy1647545505 Posted July 6, 2007 Author Report Share Posted July 6, 2007 Where did your $5k go? new flooring, carpeting, appliances (fridge, stove, washer/dryer), paint, light fixtures..new furnace, etc. Quote Link to comment Share on other sites More sharing options...
Patrick Posted July 6, 2007 Report Share Posted July 6, 2007 Interesting spray paint... Looking a lot better than it did. Nice work. Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted July 6, 2007 Report Share Posted July 6, 2007 "First room the popo will search" NICE Quote Link to comment Share on other sites More sharing options...
LJ Posted July 6, 2007 Report Share Posted July 6, 2007 Border = bad idea. Quote Link to comment Share on other sites More sharing options...
HAOLE Posted July 6, 2007 Report Share Posted July 6, 2007 Good for you.... I would suggest two things. 1. replace the counter tops in the kitchen, even if you just put down new laminate. 2. Put some cash into the land scape out front, the front of the house and the kitchen sells the house. good luck Quote Link to comment Share on other sites More sharing options...
Sam1647545489 Posted July 6, 2007 Report Share Posted July 6, 2007 Good for you.... I would suggest two things. 1. replace the counter tops in the kitchen, even if you just put down new laminate. 2. Put some cash into the land scape out front, the front of the house and the kitchen sells the house. good luck This is so true. Alot of houses are sold on just curb appeal alone. Quote Link to comment Share on other sites More sharing options...
ZYUL8TR Posted July 6, 2007 Report Share Posted July 6, 2007 One thing to remember, a $25K profit is just as good as a $35K profit. Greed has no place in real estate. You want to provide the buyer a deal as well as make yourself some profit. With that said, set aside another $10k for updates. This will payoff for you more than you know. I do like what you have done thus far. Here are three things I would advise upon: 1) Mulch bed around the front and side. Don't worry about flowers. Let the new owner envision their own planting skills once they see the potential of these mulch beds. 2) Lose the yellow paint. When flipping, use warm/neutral colors. 3) Lose the hanging cabinets in the kitchen above the sink. You need to open up that small-spaced kitchen to give the appeal of a larger kitchen. Replace the old laminate. I have tried this in the past. It works successfully. Instead of picking colors for paint, paint all the walls a base white. Offer a $1000 paint bonus to the new buyer (of course this price is figured into the selling price). Once they buy, you bring in your painter to paint the whole house whatever color the buyer choses. As we all know, painting can be a dreadful task. Quote Link to comment Share on other sites More sharing options...
coltboostin Posted July 6, 2007 Report Share Posted July 6, 2007 You could have replaced the gutter that is about to fall on th next person to walk in the front door. Yikes. Good progress, but it needs a little more work. Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted July 6, 2007 Report Share Posted July 6, 2007 Once they buy, you bring in your painter to paint the whole house whatever color the buyer choses. As we all know, painting can be a dreadful task. Great idea/advice. Never thought of that, but I bet that would a great selling point. :thumbup: Quote Link to comment Share on other sites More sharing options...
RedRocket1647545505 Posted July 6, 2007 Report Share Posted July 6, 2007 Not bad. My mother has been in the real estate business for about 15+ years as a weekend hobby. I've been re-habbing houses since I was 7-8 years old. There is money to be made, though the market sucks right now. We buy on the average of 2-3 houses/month, along with multiple rental properties that we own. I just recently got into the game on my own within the past year by buying 2 duplexs and a house in Lancaster to use as rental units. My next step is to get into buying and selling. To be honest though, the best way to do it with the least amount of headache is to buy them dirt cheap (well under appraisal) when you can find them, and just turn around and put them back on the market. If you stick with it, you'll eventually get tired of the remodeling gig. Good job though. It's a good money maker if you put the time in. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted July 6, 2007 Report Share Posted July 6, 2007 I'm in the middle of a pretty big one right now in Westerville. Ill agree with the lime green / border comments. I had an interior designer pick out every surface of the house to create a certain flow. Quote Link to comment Share on other sites More sharing options...
bonacci01 Posted July 6, 2007 Report Share Posted July 6, 2007 where is the best place to look for these uber-cheap fix-er-uppers? Are these foreclosures? Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted July 6, 2007 Report Share Posted July 6, 2007 Mine was a HUD, I wont do one of those again though a huge inventory is about to be released on the market any week now. I paid 120k after expenses, have put 7k into it and will end up around 10k. The house next door sold for 165k after a month on the market. As far as margins go, that isnt huge, but Ill take it. The best place to find properties is word of mouth. If you can find someone about to be foreclosed on in which you buy out the balance of the mortgage and give them some start up cash and assume their acquired equity, you can find much larger margins. This requires more liquidity, a network of informants, a good knowledge of true market values... not Testa page print outs, and more risk. For a first one, especially if you are doing an owner occupied, HUD isn’t a bad way to go, just don’t expect a huge profit when you sell the property. Just make sure you don’t pay too much. HUD's goal is to sell the property as close to comp value as possible even if it has no flooring/appliances/etc. Quote Link to comment Share on other sites More sharing options...
Mensan Posted July 6, 2007 Report Share Posted July 6, 2007 new flooring, carpeting, appliances (fridge, stove, washer/dryer), paint, light fixtures..new furnace, etc. You can negotiate the price of flooring at most places that sell it. Appliances can be purchased low cost via craigslist in the moving section. The furnace was probably an unavoidable cost, and I am willing to bet that it is the majority of your cost. I agree with everything Glenn said, and I would also replace the sink. There are a couple of places here in Columbus that sell discounted countertops/windows/etc., look into them. Good luck, you're doing well so far. Quote Link to comment Share on other sites More sharing options...
Bam Posted July 6, 2007 Report Share Posted July 6, 2007 Looks like its coming along nicely. Can I ask where this located or what side of town its on at leats? Would you consider living in that area? Just wondering... My dad has done this on a few houses in Bexley, and made a very nice profit, but he tends to live in them for a couple years while he fixes them, I think to avoid a tax or something? Quote Link to comment Share on other sites More sharing options...
LJ Posted July 6, 2007 Report Share Posted July 6, 2007 Looks like its coming along nicely. Can I ask where this located or what side of town its on at leats? Would you consider living in that area? Just wondering... My dad has done this on a few houses in Bexley, and made a very nice profit, but he tends to live in them for a couple years while he fixes them, I think to avoid a tax or something? Wouldn't have anything to do with tax, there is a set amount you can earn and not pay tax and once you go over that amount, it doesn't matter ($250k for single $500k for married) Quote Link to comment Share on other sites More sharing options...
Bam Posted July 6, 2007 Report Share Posted July 6, 2007 I think there is, like a capital gains tax if you don't prove its your residence for at least a year or something. Either way, he definitely made big bucks for living in a house a few years. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted July 6, 2007 Report Share Posted July 6, 2007 I think there is, like a capital gains tax if you don't prove its your residence for at least a year or something. Either way, he definitely made big bucks for living in a house a few years. Capital gains applies if you live in it for less than two years. If you do a 1031 exchange you can roll the profits into the purchase of a new property of equal or greater value and defer the tax. I am doing just that, plus I have a roommate from which I collect undocumented income cutting my mortgage in half. I wish I had done this when I was in my early 20s. Doing this instead of renting an apartment and having your roommates pay the mortgage would be a stellar way to gain equity while going to school. Quote Link to comment Share on other sites More sharing options...
Slimpsy1647545505 Posted July 6, 2007 Author Report Share Posted July 6, 2007 Thanks for all the replies. It's still in progress people, lol. The outside gutter will be fixed, the outside trim will be repainted (including gutters) and landscaping will be completed as well. This was just a week of work. The border in the one room was the only option because the walls are all old plaster and there was several border layers from previous owners. . so i scraped and leveled it as much as possible. . and as far as the green, already have a buyer. . . and the colors were already picked. The fridge/stove/washer/dryer were all only 400 (they were reconditioned) so I am aware of how to shop for that stuff. The furance was a solid 800 (great deal), and also had the cooling recharged. The majority of the expenses went into new flooring, paint, plumbing (will be replacing sinks/bathroom vanity/bathtub) and so on. I also plan on building a two-car garage behind the home. I'll keep ya'll updated, thanks for the opinions/advice though Good stuff. Quote Link to comment Share on other sites More sharing options...
Miller Posted July 6, 2007 Report Share Posted July 6, 2007 If you need landscaping on that thing done, holla. -zack Quote Link to comment Share on other sites More sharing options...
smokin5s Posted July 7, 2007 Report Share Posted July 7, 2007 I've thought about doing something similar... maybe once we get our two houses that we currently own fixed the way that we want them, sold, and into our new house. Quote Link to comment Share on other sites More sharing options...
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