I was probably born to be a house remodeller, but failed in acting it our except as it happened wherever I lived.
Lots of stuff happens in the buying and selling, even if all you do is paint the living room beige instead of navaho white, at least in the neighborhoods I'm used to. The psychiatrist who bought next door to us paid, trying to remember, something like 325,000. Not very much later, his house was worth, oh, 186,000. I'm not sure if he still owns it, but if he does, it's worth about 700,000.
This is the problem with flipping. You have to flip at the best time. or be willing to wait. Your remodel may be out of style by then.
To flip at high end from sorta medium, you will be investing in some pricey stuff. This can make sense, or fail.
In the meantime, a lot of the little old houses in my old neighborhood have either been renovated to the architectural mode of that specific year of remod, thus ruining them as examples of the original style, or have been mostly scraped, the mostly having to do with leaving a bit so it's a "remodel".
I'm no RE expert, re flipping, but I'd look for something with good basic structure, and do some simple cosmetic stuff. Natch, being me, I'd include landscape consideration.
I recently bought a lemon to live in. Lotta sh/t not disclosed. Good thing I kind of like it.
listening to business news on CNN tonight :
"foreclosures are increasing drastically !" .
don't get burned !
hbg
further to the earlier post :
...IS THE BUBBLE BURSTING ?...
"Breaking News from The Globe and Mail
The housing collapse heard round the world
BARRIE McKENNA
Sunday, September 03, 2006
Real estate agent Andrea Gaus knew the market was out of whack when the price of a typical four-bedroom house near good schools in the leafy Maryland suburbs of Washington shot past the $1-million (U.S.) mark.
"It got to the point where appreciation was so high that it priced people out of the market," Ms. Gaus said.
But the peak has passed, and the consequences of the deflating bubble are buffeting the housing market, in Washington and across the United States. "
time to take a breather and count the profits made ?
hbg
Landscaping, definitely. My grandmother used to own a nursery and she told me about many occasions when someone couldn't sell their house, called her up to do the landscaping, and sold it very quickly afterwards. A lot of these old houses have bushes so high that you can't see the house. It's amazing what a little pruning can do.
The house we bought is a 1930s bungalow style -- very popular right now and pricey if done well. It's in a very convenient location, so it wouldn't suck if we ended up having to move into it. It has its problems but no surprises.
Kitchen, bathrooms, and landscaping. That's our plan in a nutshell.
Kitchen, bathrooms, and landscaping. FreeDuck is so right. Other than structural repairs, the rest is mostly a matter of taste. I have visions of someone tearing out a wall to improve traffic flow, and the next buyer putting in a wall to establish boundries - each thinking they've improved the original design. It can work, but it takes a really good market to make it go.
blacksmithn, I think if this is what you want to do, then go for it. You've proved many times in this forum that you are a very smart man, you know to do your homework....
One one hand...
I know of two ladies here in my lil rural section of the county that have been buying houses and flipping them. It seems they both have their own talents, and husbands that are contractors...LOL But they seem to be doing well. They have even went as far as to invest in building one from bottom up, and sold it for an unbelievable profit, quickly.
On the other hand... I also live in a very rural area, that has a wonderful school, a very large lake in the backyard, and is on one of Arkansas's most scenic highways....and 20 miles from a Nat'l Park...people seem to be flocking into our cozy lil corner of the world to get away from all the drama. The price of land around here has skyrocketed, where you could buy an acre of land for anywhere from $1200-$3000 and acre, its jumped in some areas up to $4-5-6,000 an acre.
Soooooo my deduction is: Location....and as Freeduck and Roger have said..."Bathrooms, Kitchens, and landscaping." Throw in some fresh paint...clean floors, and it should work...
BUT You know...there is always a "but", I'd start small, not try to tear their heads off on the first one.
I think of a wall, one way or the other, as cosmetic, cheap enough, as long as it isn't a bearing wall. Stuff to avoid has to do with foundations, (cough) drainage, roof structure....
I agree about bathrooms, at least at a basic level. With bathrooms and kitchens, people will want their own thing.
In today's market, I'm not so sure a pricey bathroom or kitchen remod is worth it in payback... but a basic usability would be, or, say, an added bath.
And so are doors to the outside. I have a friend who has only bought places she can rent out a room and bath from, somewhat separate from the rest of the place, thereby paying a substantial part of her mortgage.
That has never appealed to me, which might have been dumb on my part.
It looks to me, judging from what I've seen on TV and from my own experience, as an initial project that-- assuming the place is in a decent location-- a moderate upgrade to kitchen and bath (and new paint, if necessary) together with greenery and flowers would generally net the most benefit versus costs expended. Where people seem to get into trouble is when they get too personally involved and view the house through the lens of what they themselves would want and not as a business opportunity. Putting a professional model 50,000 btu stove in or marble bathtub might be appealing in my personal residence, but might not earn me a top dollar return on my investment in a house that I plan to sell. On the other hand, a mid-priced, all stainless kitchen and a bathroom with new vanity, refinished tub and nice tile might result in a better ratio between costs expended and profit realized.
My problem is that all of this is just theory on my part. I'd like a little more practical, real-world knowledge before I go investing my life savings in such a venture.
Quote:Putting a professional model 50,000 btu stove in or marble bathtub might be appealing in my personal residence, but might not earn me a top dollar return on my investment in a house that I plan to sell. On the other hand, a mid-priced, all stainless kitchen and a bathroom with new vanity, refinished tub and nice tile might result in a better ratio between costs expended and profit realized.
Exactly!
And like you said, realize that its going to be someone else's home.
The first thing a person does when entering a home they are interested in buying, is to imagine their belongings placed about. Make sure there is plenty of light coming through the windows, colors are user friendly and semi-neutral.
I still think its a great idea..but thats my two cents worth! LOL :wink:
Flipping houses in Ontario, Canada
Looking for a partner.
blacksmithn wrote:It looks to me, judging from what I've seen on TV and from my own experience, as an initial project that-- assuming the place is in a decent location-- a moderate upgrade to kitchen and bath (and new paint, if necessary) together with greenery and flowers would generally net the most benefit versus costs expended. Where people seem to get into trouble is when they get too personally involved and view the house through the lens of what they themselves would want and not as a business opportunity. Putting a professional model 50,000 btu stove in or marble bathtub might be appealing in my personal residence, but might not earn me a top dollar return on my investment in a house that I plan to sell. On the other hand, a mid-priced, all stainless kitchen and a bathroom with new vanity, refinished tub and nice tile might result in a better ratio between costs expended and profit realized.
My problem is that all of this is just theory on my part. I'd like a little more practical, real-world knowledge before I go investing my life savings in such a venture.
So true, over spending is where a lot of people make their mistake. Also, those that do not budget (emergency fund) for the worst.
Without saying names, I work for one of those "flipping" television shows and you are correct. People can get starry-eyed. Make sure to have a good inspection before buying the place and try to be as realistic as possible especially when it comes to budget and schedule. Unexpected things will always happen.
