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Best bang for your buck when fixing up a property to sell

Posted on 3/14/19 at 7:54 pm
Posted by TheOcean
#honeyfriedchicken
Member since Aug 2004
42452 posts
Posted on 3/14/19 at 7:54 pm
Couple business partners and I just bought our first flip. We paid $14k for house about a quarter mile from the water. Zillow has it for about $140k and we estimate it's worth $110 to $130k right now. Median house sales in the neighborhood are $200k.

House needs a good amount of work, including landscaping. What's the best bang for your buck work we can do? We're trying to flip it quickly and 1031 into other properties asap.
This post was edited on 3/15/19 at 6:21 am
Posted by deeprig9
Unincorporated Ozora, Georgia
Member since Sep 2012
63831 posts
Posted on 3/14/19 at 7:56 pm to
Make no improvements and flip it right now.
Posted by Dawgfanman
Member since Jun 2015
22199 posts
Posted on 3/14/19 at 8:07 pm to
Sell it for 110.
Posted by LSURussian
Member since Feb 2005
126934 posts
Posted on 3/14/19 at 8:41 pm to
quote:

paid $14k for house about a quarter mile from the water in Florida.
Sounds like you almost stole it.
Posted by TheOcean
#honeyfriedchicken
Member since Aug 2004
42452 posts
Posted on 3/14/19 at 8:59 pm to
Got to love being able to do all the legal work yourself

So no one would put any money into the house before flipping? House needs to be cleaned up and basic landscaping at a minimum.
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80754 posts
Posted on 3/14/19 at 10:01 pm to
quote:

We paid $14k for house
quote:

Zillow has it for about $140k and we estimate it's worth $110 to $130k right now.
WTF how?
Posted by rowbear1922
Lake Chuck, LA
Member since Oct 2008
15165 posts
Posted on 3/14/19 at 10:30 pm to
Yea if you bought it for $14k and can sell it without another dime for $140k, don’t spend a dime and sell the shite out of it ASAP
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 3/14/19 at 11:19 pm to
Pls tell me how you did this. Thanks.
Posted by oklahogjr
Gold Membership
Member since Jan 2010
36748 posts
Posted on 3/14/19 at 11:22 pm to
I would do as little as possible. most likely you're eating more into profits than increasing the value if you're already that far ahead.
Posted by rowbear1922
Lake Chuck, LA
Member since Oct 2008
15165 posts
Posted on 3/14/19 at 11:30 pm to
Also time is money.

You may be able to make a small additional profit as compared to just selling straight up but is that time (30, 60, 90 days) worth another $40-50k before expenses vs using the money to buy another flip property
Posted by TheOcean
#honeyfriedchicken
Member since Aug 2004
42452 posts
Posted on 3/15/19 at 5:12 am to
Don't want to get into details on here, but completely legit. These properties require some serious legal work ($15-20k) that we can do for free -- eviction, quiet title, 1031.
Posted by TheOcean
#honeyfriedchicken
Member since Aug 2004
42452 posts
Posted on 3/15/19 at 5:14 am to
Zillow has it for $140k. I don't think it is worth that given the current condition.

Here's a side question...how do we find flippers who would be willing to buy it at a pretty big discount?
Posted by Penn
Jax Beach
Member since Jan 2008
23448 posts
Posted on 3/15/19 at 6:59 am to
Not gonna lie, this sounds shady as frick
Posted by HES
Member since Feb 2015
121 posts
Posted on 3/15/19 at 7:16 am to
Never trust Zillow prices. Might be close, might be way off.
Posted by MrJimBeam
Member since Apr 2009
12250 posts
Posted on 3/15/19 at 7:19 am to
quote:

We paid $14k for house about a quarter mile from the water. Zillow has it for about $140k and we estimate it's worth $110 to $130k right now.


How in God's name did this even happen? Something isn't adding up. Free 100k in equity doesn't just pop up
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
421245 posts
Posted on 3/15/19 at 7:41 am to
quote:

Don't want to get into details on here, but completely legit. These properties require some serious legal work ($15-20k)

even then you're looking at a whopping $34k in cost

you may have found the steal of the century (and i would not expect many repeats) or there is something really bad beneath the surface

but assuming you found a needle in a haystack, do nothing. clear the title and sell it. if the houses sell for $200k max you'll need to put in $50k+ to get to that level and you're only gaining maybe $60k in value (so +$10k). add in the cost of time to do that and you're -EV bruv
This post was edited on 3/15/19 at 7:42 am
Posted by skinny domino
sebr
Member since Feb 2007
14329 posts
Posted on 3/15/19 at 8:54 am to
quote:

Not gonna lie, this sounds shady as frick

Posted by TheOcean
#honeyfriedchicken
Member since Aug 2004
42452 posts
Posted on 3/15/19 at 9:37 am to
quote:

Not gonna lie, this sounds shady as frick


Nothing is shady. Deed was already recorded transferring ownership by the county. We already have a title company willing to write a title policy. My business partner has been doing real estate law for 10+ years.
Posted by TheOcean
#honeyfriedchicken
Member since Aug 2004
42452 posts
Posted on 3/15/19 at 9:39 am to
Nah, not the steal of the century. These types of deals are pretty common if you know what you're doing.

But yeah we're just going to try and flip it asap. Just need to find some flippers.
Posted by rowbear1922
Lake Chuck, LA
Member since Oct 2008
15165 posts
Posted on 3/15/19 at 9:41 am to
quote:

Nah, not the steal of the century. These types of deals are pretty common if you know what you're doing.

But yeah we're just going to try and flip it asap. Just need to find some flippers.


If you need a 3rd investor, I'll throw in $4k with you 2 for a 10x multiplier in a matter of moments
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