Just bought a foreclosure to 'flip".......{gulp}

[dave1949]

Taxes,interest,closing costs and realtor commissions have made it a non profit exercise to "flip houses in the north east. Every one has a hand in your pocket when you sell property.

I have the impression that the Boston area housing market didn't go as low as many others. My son, lives in Framingham, looked at existing houses to buy versus a major remodel on his current house. He chose the remodel, sale prices seemed pretty solid, not to mention shockingly high by local standards here.

 

[jinman]

Rick, I know you are wanting to get the most return on your investment, but I think I'd look at re-roofing that whole house. It has a very easy roof line and not many valleys. With only one layer of shingles, you would not even have to rip the old ones off unless there is some weird code in your area. Truth is, you can probably repaint the insides, clean it up well, put a new roof on, plant some nice plants and make it have curb appeal, do necessary repairs and put the place on the market yourself through craigslist. You and your wife can certainly do any document/contract work and just use a title company to close the deal for the best possible no-hassle flip. You are gonna make money. It's just a question of how much and how quickly. If you can get it sold before winter sets in, it will be a big plus for you.

 

[aczlan]

Given the roofline, you might even drop a steel roof on...

Aaron Z

 

[MotorSeven]

Rick, I know you are wanting to get the most return on your investment, but I think I'd look at re-roofing that whole house. It has a very easy roof line and not many valleys. With only one layer of shingles, you would not even have to rip the old ones off unless there is some weird code in your area. Truth is, you can probably repaint the insides, clean it up well, put a new roof on, plant some nice plants and make it have curb appeal, do necessary repairs and put the place on the market yourself through craigslist. You and your wife can certainly do any document/contract work and just use a title company to close the deal for the best possible no-hassle flip. You are gonna make money. It's just a question of how much and how quickly. If you can get it sold before winter sets in, it will be a big plus for you.

When I saw all the leak spots inside, my initial thought was to re-roof with metal like aczlan suggested...just go right over the shingles with it. My personal opinion on shingles is that they suck, the shed silica by the bucket's, are easily damaged by hail and wind, curl up or disintegrate with time.....I'll take a metal roof any day. But after looking at the roof from the topside, it really is in pretty decent shape except for the area of damaged/missing shingles. I pulled down a sheet of the ceiling in the living room where the largest spot(4'x4') was so I could inspect the osb that is under the shingles. A few small water spots, but otherwise in excellent shape so I don't think it has been leaking for a long time.

I have repaired all the damaged areas by thatching in new shingles in the same color & think this roof will last at least another 10 years, so I don't think replacing it is necessary at this time. I did however find that the back porch roof was improperly attached and is rotted along the transition. So, it's all coming down and the crappy deck with it. I will replace it with a 12'x20' open deck.

We have not closed yet, so other then ripping off the back porch, I won't do anymore work on the place until that happens...just in case there is a hidden title issue.

 

[brin]

We have not closed yet, so other then ripping off the back porch, I won't do anymore work on the place until that happens...just in case there is a hidden title issue.

This is scary...I have been a Real Estate Broker and Investor for over 35 yrs....be very careful doing anything until you have closed ...Yikes....

 

[MotorSeven]

Yep, so far the investment on my end is time and under $100, so I am ok with that gamble.

 

[mjarrels]

I have watched flip this house many times. They always use the cheapest materal and labor. I know it's a reality show but I wouldn't touch a flip for profit house with a ten foot pole. Wish you luck.

mark

 

[ultrarunner]

Another vote for Zinsser products...

Zinsser Perma White mold and mildew paint has saved my bacon many times with rentals... some people never open a window!

A 3 bedroom 2.5 foreclosure I was looking at on an acre was listed at 460k and had multiple bids and sold for 800k

Amazing how prices vary around the country... just the city transfer tax was 12k on the 800k and really takes a bite out of flipping.

Agree with the egg shell for selling... renting is different... semi gloss on everything has made life so much simpler...

 

[ultrarunner]

Nieces godmother decided to become a homeowner after years of renting... single, she fell in love with a home offered by a flipper last year.

After about 6 months of ownership... she decided it was not all it was cracked up to be.

The great thing is it sold quickly and she made 75k in profit in 9 months... mostly just for buying it and having is sparsely decorated...

For the first time in her adult life she is debt free... retired the student loans and paid off all her credit card bills.

A friend of hers is going overseas for at least one year for work and was looking for a house-sitter.

Sometimes the stars align!

 

[jejeosborne]

I will give you a little boost in your decision. Last year I bought the eyesore of the neighborhood, yes my neighborhood. I got it for $43,000 and had a slightly different approach since it was in my neighborhood and wanted to attract a certain class of person. I gutted it to the studs and replaced everything but the frame and brick exterior. Everything. I did a lot of work to the yard and added a nice composite deck and deluxe kitchen. Profit before tax was about $80,000.

Now I have an offer on the second house #2 in the neighborhood. Get a double wammy since my property value also increases. Mixed neighbor with brand new and older homes.

Don't let the stress get to you. As others have said, make it appealing to the masses.