Hey all,
Some of you have been following my postings. Some not. I’m a newb to flipping houses so this will be my first go around. I closed on the property this past Tues. Here are some raw numbers…
40K purchase price
20K max in repairs
Appraised at 80K
My terms with the lender are 8.5% interest rate, interest only payments, on a 9 month note. They rolled the purchase price and rehab costs into the same loan. I have 20K at my disposal thru draws at the title company. The biggest thing I didn’t account for was the TIME that is involved. With 4 kids, wife, damn dog, full time job, etc. its hard coordinating with the bank, realtor, contractors, call backs. I have a crew of buds coming with me next weekend to tear down exisisting garage and to begin demo work, framing some things, and getting it ready for contractors.
So I’m on the hook! I will keep you posted on the good things and the bad things that I run across. I hope to share with you, as a newbie, what I learned throughout the process. Sorry to the vets of rehabbing if this get’s boring or another newb’s story being posted. My journey is now underway and we’ll see what happens. Stay tuned!
Nate-WI
Thanks for sharing Nate. I love reading about other newbies getting off the fence. Hopefully I’ll have a deal to share soon too.
Keep us posted!
So far to date I have a roofer all set to go and will have the drywall crew in place by mid-next week. My brother (thank god!) is in construction and lives 2 hours away. He and his foreman are coming up for a whole week to get as much done as possible. Its going to save me mucho bucks thanks to them. I offered to put them both in a hotel for 5 days and they refused. Would cut into my profits. So they are going to bunk at the property. They are gonna do the trim for the entire house, fix a sloping floor, new countertops, and whatever else they can get into. That should keep them busy though. I pay for the materials and they both get 1K for the week. That’s about 25 bucks an hour which is pretty reasonable considering I know what they work for. I have pictures of the property if anyone wants to take a look at it. Talk soon,
Nate-WI
Hey Nate…
Sounds exciting!!! I would love to see some pictures.
Jared
Good luck man, hopefully it goes well for you. My first experience hasn’t been so hot. I purchased for 36k, ARV68k, that was in August of last year, still have the home for sale for 65k, and its easily the nicest house for sale in the neighborhood. Don’t want to scare you, just be ready for the long haul, I wasn’t
Looks like you got your work cut out for you!!! Good luck to you and keep asking the questions!!!
Nate,
Thanks for sharing the details of your deal. I’ve been following some REI blogs and I always see trouble with contractors. With you knowing these guys and the work they do, I think you’ll be in good shape. Good luck.
Jeff