house flip pics . . . fun stuff

[Slimpsy1647545505]

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

[Mensan]

Where did your $5k go?

[Slimpsy1647545505]

Where did your $5k go?

 

new flooring, carpeting, appliances (fridge, stove, washer/dryer), paint, light fixtures..new furnace, etc.

[Patrick]

Interesting spray paint...

 

Looking a lot better than it did. Nice work.

[dragknee66]

"First room the popo will search" NICE

[LJ]

Border = bad idea.

[HAOLE]

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

[Sam1647545489]

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.

[ZYUL8TR]

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.

[coltboostin]

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.

[Dr. Pomade]

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:

[RedRocket1647545505]

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.

[iwishiwascool]

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.

[bonacci01]

where is the best place to look for these uber-cheap fix-er-uppers? Are these foreclosures?

[iwishiwascool]

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.

[Mensan]

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.

[Bam]

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?

[LJ]

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)

[Bam]

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.

[iwishiwascool]

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.

[Slimpsy1647545505]

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.

[Miller]

If you need landscaping on that thing done, holla.

 

-zack

[smokin5s]

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.