Part Time REI » Flipping House Series

Flipping House Series: The High Risk House Part 1

Erik Hitzelberger — Mon, 25 Aug 2014 18:23:46 +0000

As in any of life’s adventures, sometimes you just gotta take a risk. This is true, more times than our team would like, painfully true, in real estate investing. Our next home on our list is a house our team just bought. This particular home was purchased at commissioners foreclosure auction. What that means is we were not allowed inside to see the house before we bought it so needless to say there was not an initial walk through so we could not do our Property Repair Estimate Sheet beforehand. Keep in mind you have to buy these properties with extra safety margin (i.e. lower purchase price) due to the uncertainties of not being able to see inside. If you are lucky higher risk means higher profit. However as you can see from the pictures below we were in for an unpleasant surprise. Here’s the before pictures of The High Risk House

Front of House Before

Dining Room Before

Kitchen Before

Laundry Room

Under the Sink

Bathroom Before

Ceiling

Junk

To learn more about Part-Time REI visit us at http ://part-timerei.com/

Or connect with us

Flipping House Series: The “No Deal” House

Erik Hitzelberger — Mon, 18 Aug 2014 16:43:05 +0000

Missing out on good deals can be painful. The ‘lost’ income is hard to replace and the experience can be frustrating. New investors tend to miss these deals because 1) other investors hear about them first because they have better networks or 2) the new investor takes too long to analyze the deal. That being said, getting into a bad deal can be crushing. Most people can’t withstand the mental and economic toll that losing tens of thousands of dollars can take on your investing career. This apparent paradox begs the question, “how do you move quickly and avoid disaster?”
The answer is to 1) have good systems, 2) have a good team, and 3) remember that real estate is about control not ownership. The first two items should be obvious, yet many wannabe investors skip over these ‘soft’ items. Poor results ultimately lead them to give up claiming this doesn’t work where I live or some other phrase that places blame squarely on something other than themselves.
The sad fact is that the first 2 items are incredibly easy to do and can provide tremendous value. Using a Property Repair Estimate Checklist and Deal Analyzer will help you make sure the numbers are in line. Having a solid team (agent, contractor(s), inspector(s), mentor) increases the speed and quality of decision making.
The third item often requires a paradigm shift. Many people think you have to have everything worked out prior to submitting an offer. This is not true. If you get an accepted contract, you control the property. The seller cannot offer it to anyone else until you release the contract. Meanwhile, you can use inspection, financing, and other contingencies to protect your interest if you discover the property is not a deal.
Does this mean you should put every property under contract and then do your due diligence? Absolutely not. However, if it passes your initial screening, then secure the deal under your terms and proceed knowing you have a way out.
I recently had an agent call to tell me about a property. The house was in a decent area, it fit my normal buying criteria, and it was priced in a way that allowed for nearly $50K in repairs. Due to other obligations, I knew I couldn’t get to the house for a couple of days. So, I walked through the PREC with the agent. The repair cost seemed to be in line, so I made an offer.

Living Room

Front of House

Bedroom

Bathroom

Basement

A couple of days after the offer was accepted, I went to the house and instantly knew the numbers were going to be tight. As I expected, my inspector turned up significant items that I hadn’t accounted for in my initial estimation. Since the numbers no longer worked and the sellers were unwilling to renegotiate, I released the contract and my escrow money was returned.

By having good systems, a good team, and using contingency clauses correctly, I gave myself the opportunity to get a great deal and to avoid a terrible one. This time, the latter option was the correct decision. Total loss = $225. Loss Avoided = $10-$15,000. That’s a smoking good deal!

To learn more about Part-Time REI visit us at http ://part-timerei.com/

Or connect with us

Flipping House Series: The Gutted House Finale 2

Erik Hitzelberger — Mon, 11 Aug 2014 15:53:35 +0000

As promised we have more after shots of The Gutted House. Because this was a complete remodel, with our team totally gutting the house there were too many after shots to show you in one blog post. Let’ take a final look at how The Gutted House turned out.

Dining Room

Master Bedroom and Bath

Stairs

2nd Floor Bathroom

Bedrooms #3 and #4

To learn more about Part-Time REI visit us at http ://part-timerei.com/

Or connect with us

The Gutted House Finale

Erik Hitzelberger — Mon, 04 Aug 2014 16:20:37 +0000

A few weeks ago we introduced you to The Gutted House. We had many before pictures of the house and the yard. After everything that was done on this house it is great to see how it turned out. If you remember, this was quite the rehab. Our team basically had to scrap the ENTIRE house. Everything was redone. Here’s a look at the AFTER pictures of The Gutted House.

Front and Back Outside

Kitchen

Living Room

Be sure to check back again for the rest of the after shots of The Gutted House!

To learn more about Part-Time REI visit us at http ://part-timerei.com/

Or connect with us

Flipping House Series: The Gutted House Part 2

Erik Hitzelberger — Mon, 21 Jul 2014 19:49:24 +0000

Last week we showed you several before pics of our latest Flipping House Series. The Gutted House is a complete rehab. Many items to tear out and replace. This week we wanted to show you some more of the extensive clean up on the OUTSIDE of the house. It has become quite the overhaul. Here are a just a few more pics of The Gutted House’s outside to give you a real feel for what we are dealing with. Take note on the several trees and debris including an old shed that must be removed.

Stay tuned to see how the outside and the inside of The Gutted House turns out!!

To learn more about Part-Time REI visit us at http ://part-timerei.com/

Or connect with us

Flipping House Series: The Gutted House Part 1

Erik Hitzelberger — Mon, 14 Jul 2014 15:59:24 +0000

Welcome back to our Flipping House Series. We had a little hiatus with some great Podcasts with Erik and Bryan and we will have more of those in the future. This week we look at a great flip. This house is basically totally brand new, on the inside. From the pictures you can tell that this was a total gut job, which is where this one gets its name–The Gutted House.

This was quite the rehab. Rarely do we have to scrap the ENTIRE house but from the look of the before pictures you can see that this is exactly what was needed. Everything was redone. Walls knocked out. Carpet replaced. About a 1/2-acre of trees removed. An old barn demolished. Septic tank replaced. You name it. Let’s take a look at different items in The Gutted House.

The Outside

Trees and more trees

Front of House Before

Back of House Before

The Inside

Kitchen Before

Bathroom Before

Front Room

A lot of random colors here.

Family Room Before

Purple Stairs anyone??

Bedroom Before

Be sure to check back in with us to see how The Gutted House comes along!

To learn more about Part-Time REI visit us at http ://part-timerei.com/

Or connect with us

Best of Before and After: Bathrooms

Erik Hitzelberger — Mon, 26 May 2014 16:00:53 +0000

Comparing before and afters is always a great way to quantify the changes we make in our flipped homes and see what we have accomplished. It is truly amazing how different an area of a house can look before and after a remodel. As we start our 3rd week in this blog series we will take a look at some of the most transformed bathrooms. Again if you have been following our blog for any amount of time you know that we flip a lot of houses!

In most of our investment homes we buy with the intent to flip, we try to make sure they are the standard 3 bedroom 2 bath at the minimum. Homes with just one bath are very had to sell. In some instances we have actually added a 2nd bath to make the home more desirable. Here are our top picks for before and after bathrooms.

Hall Bathrooms

Master Bath

To learn more about Part-Time REI visit us at http ://part-timerei.com/

Or connect with us

Best of Before and Afters: Yards

Erik Hitzelberger — Mon, 19 May 2014 01:39:41 +0000

We started this blog series last week as a look back at some of our most dramatic transformations. Again if you have been following our blog for any amount of time you know that we flip a lot of houses! As we continue our escapade of best of before and afters we thought it would be fun to look at some of our favorite flips that really turned out great.

We did kitchens last week and wow were some of the before pictures are real doosies! Next on our list is the yard. The front yard is the first impression that your potential buyers will see. How the landscaping is done, or not done can deter or lure them in as we wrote about in our Lost Art of Landscaping post recently. Additionally the back yard can be an oasis or just a bunch or dirt, as we saw at The Dirt House. Let’s look at some of our favorite before and after yards.

Back Yard Before

Back Yard After

Back Deck Before

Back Deck After

Front Yard After

Front of House Before

Front Yard After

Back Yard with Pool Before

Back Yard with Pool After

To learn more about Part-Time REI visit us at http ://part-timerei.com/

Or connect with us

Best of Before and Afters: Kitchens

Erik Hitzelberger — Tue, 13 May 2014 13:00:54 +0000

If you have been following our blog for any amount of time you know that we do a Flipping House Series every Monday. Over the past few years our team has had some pretty dramatic transformations on our flips. We thought it would be fun to look at some of our favorite flips that really turned out nice and our team was able to reap the rewards on the resell.

First up are our most dramatic differences when it comes to remodeling a kitchen. The kitchen is a huge selling point in almost every home. If home is where the heart is, the kitchen is where the stomach is! Let’s start with these five jaw dropping remodels.

Before

After

Before

After

Before

After

Before

After

To read about each one of these flipped houses and the problems our team over came in each one be sure to search for key word ” Flipping House Series” on our website.

To learn more about Part-Time REI visit us at http ://part-timerei.com/

Or connect with us

Flipping House Series: The Dirt House Finale

Erik Hitzelberger — Mon, 05 May 2014 16:00:14 +0000

Now that The Dirt House has been finished up let’s take a look at some of the after shots. If you want to look at the before shots click here.

Front of House

It looks great!

If you remember this house’s floors were pretty much dirt and so was the back yard. Here is a list of the repairs we completed on the dirt house.

Kitchen – Subfloor, Flooring, Walls, Windows, Cabinets, Counters, Appliances

Bath – Subfloor, Flooring, Tub, Tile Surround, Vanity, Toilet, etc

Back yard sod and front yard Landscaping

General – Paint, Carpet (BRS), Hardwood (LR), Windows, Doors, Deck, Siding Repair, Lighting, Plumbing (all), Electric (most), HVAC (ductwork), Floor Joist repair.

Part Time REI » Flipping House Series

Flipping House Series: The High Risk House Part 1

Flipping House Series: The “No Deal” House

Flipping House Series: The Gutted House Finale 2

The Gutted House Finale

Flipping House Series: The Gutted House Part 2

Flipping House Series: The Gutted House Part 1

The Outside

The Inside

Best of Before and After: Bathrooms

Best of Before and Afters: Yards

Best of Before and Afters: Kitchens

Flipping House Series: The Dirt House Finale

Front of House

Kitchen After Shots

Yard After Shots

Bathroom

New Floor