Newbie With Questions About Buying RE To Fix Up/flip
We are just getting into the field of renovating houses to resell and I had a few questions I hoped someone could help me with.
We live in Maryland and the average cost of a house is $200K in this area. Where is everyone finding these houses for $20-$40K? I've checked on the HUD websites and there isn't even anything listed in this area for even close to that amount. Also I have a realtor sending me current listings for under $150K and most of what we've found are very small ranches or bungalows (basically properties that won't bring much more than they are asking for them right now). There are some properties in Hagerstown for sale for less, but there are some rather bad sections and I thought it would be best to buy outside of the city.
The areas I have been looking at are here in the Hagerstown area of MD, Massachusetts, lower coastal Maine, Lynchburg VA area, and www.Ft.Collins CO areas. All of these areas I have lived in and somewhat know the neighborhoods. Is there any one place you would recommend over another, and if so, why?
We have been approved for a $150K loan with 5% down and we have $35K to work with of our own money. My husband has restoration skills and I am a good painter, so we thought we would do most of the work ourselves. We are going to do this full-time so we were going to figure in the cost of our labor into the expenses. Is this the best way? or do you even get paid for your labor? and also, is it best (most cost effective) to do the work yourself or hire out?
I appreciate your taking the time to read this all through and respond. The wealth of information I've found so far on the boards has been very helpful.
Thank you,
Gayle
It sounds like you two should get a little more acquainted with different investing techniques and how to go about finding the right investment properties. If it were that easy, everyone would be doing it, although it feels as though everyone is trying. I would suggest looking at the products and services section of this site and maybe purchase a course or manual that may give you more info and familiarize yourselves with some of the more creative ways as to how to invest. There is so much information to learn, that even the most seasoned investor learns something new everyday. Good Luck with your ventures![ Edited by DaShow on Date 10/24/2004 ]
Hello Gayle,
First, fyi, I think I saw a good fixer in Williamsport in the Properties section of TCI today--in the teens or twenties.
I sometimes see HUD + VA foreclosures in your neck ot the woods for cheap. I think Hagerstown is waiting to become Fredericks suburb. Opportunity
for cheap fix / resell, why care about the area?
Couple of other thoughts:
1. Since you will both be doing the work, should you buy far from home? How would you do that? Live there while fixing?
2. Seems to me you are close to excellent areas on the horizon. Will you keep any to rent out?
3. Are you planning to buy more than 1 at a time?
I have the ability to travel to the different lcoations that I listed and either stay in the home (depending on what all needs to be done) or with relatives.
I looked on the TCI properties listings and I didn't see anything for this area, but then again I only have a newbie subscription and I don't think they list everything - are there alot more properties available if you pay for a subscription?
We have the preapproval for the one loan of $150K and the $35K in our savings to do the work, but if I could get into more than one house at a time it would probably be more profitable and eliminate some of that down time when we go to sell. I would just have to figure out the financing.
Right now I don't think I will get into rentals, unless one of the properties I buy is a 1-4 family so we can live there too, but maybe in the future. I just don't think we have enough money to carry us in case we have problems with tenants.
Thanks for your help,
~Gayle
So, your goal is to move into the property as you fix? Will that mean you qualify as a first time buyer in Md?
MY experience says to look at some of the closing costs in the States that you are considering, too.
I checked the Md. properties...
Westernport, Cresaptown, Cumberland. Not Williamsport. Sorry. [ Edited by ceinvests on Date 10/24/2004 ]
We just sold our house of 16 years in Massachusetts in June, so we won't qualify as 1st time homebuyers. We could either live in the rehab house or stay with family in any of the areas we are looking in. I have also heard about pre-construction flips so I am trying to find info on these too
~Gayle
There is a lt of preconstruction in Fla.
If you are interested I'll connect you to Agents there
Hi, just a quick word of advice... try to stay away from living in a property you plan on rehabbing. if the work is small and non-invasive, like painting, or carpeting, new trim etc., you should be ok. but if that whole 35000$ is going toward the property you are going to both live in and renovate, it could become troublesome. it can be done, but that's just my experience. If you are going to live there I suggest starting with curb appeal. add some value to the outside of the house to make it attractive to buyers. Oh yeah, you get paid @ closing when you sell or refi!!! good luck
mobius4
Hi, just a quick word of advice... try to stay away from living in a property you plan on rehabbing. if the work is small and non-invasive, like painting, or carpeting, new trim etc., you should be ok. but if that whole 35000$ is going toward the property you are going to both live in and renovate, it could become troublesome. it can be done, but that's just my experience. If you are going to live there I suggest starting with curb appeal. add some value to the outside of the house to make it attractive to buyers. Oh yeah, you get paid @ closing when you sell or refi!!! good luck
mobius4
NYRE,
That would be great if you could help me find the right people to talk to. I've been looking on the HUD website and on www.Realtor.com, but I think there must be something else. I hate to pay for a subscription to a house finding service (foreclosures, cheap house, pre construction, etc.) because I never know if it's a scam.
Thanks,
~Gayle