Thread: My Flip

A potential lease purchase tenant looked at it today, and I also sent pix and info to an investor. It will be on the MLS tomorrow or Monday. Also, I am putting up for sale a rental condo that wil also be on the MLS tomorrow or Monday.

Good luck colonial.

colonial mike/ or anyone
i am flipping a home in N.C. and want to sell as owner.i should be done with renovations in another month. what would you recommend on that ?? and should i list mls to get exsposure, since we want to sell quickly and not have the cost of paying a realtor to sell it.

thanks
guchi

Where in NC is your property? How much are you asking?

located in the big city of Rocky Mount !!! asking price has not been determined yet, we will wait till completed and get an appraisal done. but you can buy buy it now at a bargain. lol !!!

vic

why were u asking, are you from N.C. ???

Originally Posted by GUCHI

colonial mike/ or anyone
i am flipping a home in N.C. and want to sell as owner.i should be done with renovations in another month. what would you recommend on that ?? and should i list mls to get exsposure, since we want to sell quickly and not have the cost of paying a realtor to sell it.

thanks
guchi

I'm not a big fan of flipping, although, i've done it. I really couldn't say anything about your investment since you didn't provide any details. P

Originally Posted by colonialmike

Happy Holidays to everyone...it has been pretty quiet on the REI thread. This is what I am working on. Some of the following info has been posted in parts on some of my other posts.

In 11/05 I put 14K down on a 135K pre-construction condo in Myrtle Beach, SC. Prices were still on the rise at the time but have since leveled off. I used my HELOC for the 14K which costs me appx $95/mo.

It appraised at 160K when I settled in late 11/06, and my first payment is not due until mid 1/07. Since I used a "flip" mortgage product - which is a HELOC at 9.25%- there were no costs associated with the mortgage co., only $1200 from the closing atty. Also, I spent $650 on a washer and dryer.

My Real Estate agent said it would sell better with a tenant for 2 reasons: It would be more attractive for an investor and it would show better with furniture. I have several folks who will be looking at it in early 1/07 to move in 2/07. With a tenant, my neg cash flow each month will be appx $350 until it is sold.

I have it up for sale for 163K OBO. I figure if I sell for 155K, less 3% comm. (5K), and 5K closing. My costs would be:

appx $1400 (HELOC)
appx $1000 ($350 loss/mo)
$1200 (settlement)
$650 (washer dryer)
$10K (comm and closing)
TOTAL 14K


155K selling price - 14K costs = 141K less purchase price 135K= 6K profit

I was hoping for a better profit, but an an investor buddy told me "not bad for a few hours of work". Also, investing 14K to make 6K is almost 50% ROI in a less than 1 1/2 years.

I have found a renter to move in next week at 875/mo. I will now put it on the market. The rent will cover most of the expenses. My revised costs currently look like this (settlement at sale is inexpensive for the seller):

$1500 HELOC
$1200 settlement at purchase
$650 washer dryer
$3200 mort, tax, HOA
$1K closing costs at sale
5K commission
$11,550


155K Sale Price
-11,500 holding costs
143,500
-135K Purchase Price
$8,500 PROFIT

WOW, I just had my first tenant experience.

As stated in previous posts, I wanted to sell my 7 month old 3BR 2BA golf course view condo but waited for tenants before I put it on the market. I priced it at an attractrive price, 152K, to try to get a quick sale. This would eat into my profit, but for a quick sale, it would be worth it.

The tenants, 3 of them, started trashing the place 5 weeks after moving in. A few weeks ago my real estate agent (who I have worked with for over 1 year) showed the unit to a retired couple from out of state who were looking to relocate. My agent called me the next day. The place smelled like cigarettes and pot, there were stains all over the rug, crayon writing all over the walls, and a dope pipe on the screened in porch.

Needless to say, the place would not sell with these tenants in there. I called the management company who sent a letter indicating they would complete a walk through inspection within a few days. The letter said that if items noticed in the walk through were not corrected within 21 days, eviction proceedings could begin at that time.

Well, this was my first bad tenant experience, so when I saw my real estate agent telephone number on my caller ID a few days later, I was thinking the worst. She was calling to tell me that the couple who saw the stained rug, crayons on the wall, and dope pipe, wanted the unit at 145K with no inspection clause or any other clause.

After talking to her, I countered at 147K and it was accepted. I felt I had to take something close to this low offer, considering th next showing may be as bad and word may spread among realtors that I have a disgusting unit.

We settle in June. In the meantime, the tenants cleaned up the mess upon receipt of the letter, and the walk through revealed no problems.

I will make VERY little on this flip, but it was a learning experience (my first flip) in that I dealt with bad tenants and a declining/slow market. When I signed for the unit at pre-construction 135K, it was a very good price. However, the 12K difference betwen purchase and sale was eaten into by holding and closing costs (plus blinds and a washer dryer).

Putting it on the market for 152K, and then closing at 147K, is not a bad deal for you. You can expect to work a little with your agent, and not always expect to get the exact price you are asking.

I'd say you made money, and in this day and age, that is not a bad thing.

P.S.- at least the district attorney isn't taking your condo away.....

can anyone give me some info. on the advantages , if any on selling your primary residence and buying the home you flipped yourself. once we finished the flip we thought this would make a nice home for somebody. and 2months on the market we thought why not sell our primary residence and purchase the flip. i put the house on the classified section of this site.
thanks for any info. anyone has to offer.