I Have an Idea!

OK, so I am no Donald Trump.  First of all, I have all of my own hair, but more importantly I don't have gobs of money to invest in real estate....yet.  So I can't flip another house just yet.  But what I can do is shop around for them and then showcase them for you.  Have you ever thought of flipping a property?  Fearful of the outcome?  Not confident in your cost estimating skills?  Can't find the diamond in the rough?  Well, let me do it for you!

Each week I will scour through the MLS, Grapevine, Ziglu, ComFree, and whatever else there is to find those gems just waiting to be renovated so they can showcase their true beauty....and make you some money!  I am so confident in my abilities that if you choose to buy one of my "picks of the week/month (depending on the season)" I will act as a consultant for you throughout the process.  If you lose (or just break even), I get nothing.  If you win, I get 0.5% of your total sale price.  Deal?  Now give me a weak or two to check that out with my lawyer.  This won't be the first crazy thing I've ever tabled.  But that's why I pay him the big bucks...to figure out my crazy ideas and make them work!

If you are not from my area I think the reasons for buying a particular property still apply no matter where you live so you can still use my picks as templates for other areas across the country or around the world.  For example, the top 5 things to look for are:

1. Solid Foundation - the foundation is just that...the foundation of the house.  It's critical and can be very expensive to fix.  I read somewhere the other day (I wish I could credit whoever it was, but I forget) that one in three basements in Ottawa leak.  Wow!  That's crazy.  This is something that has to be checked and double checked because it will come back to bite you in the ass when your buyers' home inspector discovers it.  This is a deal breaker for many buyers.
2. Neighbourhood with potential - if you want to flip a house you need to buy in a sought after neighbourhood or be able to predict which areas are on their way to being sought after.  Problem is, the sought after neighbourhoods usually command higher prices but if you can find one in really rough shape it could be worth it.
3. Curb appeal - always helps.  After all, it's the outside of the house that people see first.  Problem is when you are flipping a house you can't usually afford to rip off siding for example, and replace it with brick.  This type of renovation is usually too costly.  Therefore, look for a house that is clean looking and could be jazzed up with a new front door, for example, or some simple landscaping.
4. Windows/Roof/Heating/Cooling - if any of these items are in need of replacement  this could be a big hit to your wallet.  If you are flipping a house you need only make sure these items are not causing damage to the house (i.e. leakage).  You can get away with "older" windows, roofs (did you know I checked and it's not "rooves"?) and furnaces but they can't be too bad because the buyer will try to knock money off your selling price to cover the replacement costs.
5. Layout - and more importantly, support walls.  You might have a crappy layout but tearing down a wall or two is actually not that costly and can have a major impact on the appeal of the house for buyers.  But you can't tear down a support wall (usually) so if you have plans to make rooms bigger or create that ever-so-in-demand "open concept" you need to find out which walls are support walls.  Fortunately, it's usually pretty easy to tell.

So there it is.  My idea of the day.  But seriously, if you have ever thought of flipping a house and just haven't taken the plunge.  Now is your chance!  It's Friday today so stay tuned for next weeks "pick of the week".  I will visit each property multiple times if I have to and make sure I have a comprehensive breakdown of what I think the house needs and what I think it will cost.  I will share why I think it would make a good flip and things to be cautious about!  I love it!

It's a Happy Sad Day

My house is SOLD!!!  Yes, I am happy but I am also disappointed that after all of the blood, sweat and tears - literally - I just broke even!  It goes to show you how much of a difference you have to sell a house for to actually make a profit.  I sold the house for $40,000 more than I bought it for but I spent $25,000 on renovations and another $5000 to run the house vacant while it was for sale for the past 6 months and then the last $10,000 to the realtor who finally sold it for me!  I do, however, get my investment paid back to me though.  I put $10,000 down on the house and I have paid down another $10,000 in principal on the mortgage over the past 2 years and I did earn close to $5000 in rental income early in the year and $14,000 the year before when it was rented.  So I will have a nice lump sum of $20,000 to pay to other debts :) and then I will start the process all over again!  Yes siree, you heard me right, I will start the process all over again.  I didn't lose and I learned a lot so I feel better equipped for the next time around.  I can tell you the #1 thing that led to my pseudo-failure here.....If you want to sell a house for top dollar you must get it on the market April 1st.  As soon as Spring is even thinking about being in the air people start thinking of moving.  In April/May a house identical to mine sold for $276,000.  $16,000 over listing price in a bidding war.  And, my old neighbour sold his house for $14,000 over asking price in a bidding war around the same time.  Why?  Because inventory was low and people wanted to close deals and move before summer started or before summer ended (it is so damn short after all).  TIMING IS EVERYTHING!

I picked up a the nice shiny cheque from my lawyers office this morning.  3 days after closing,  albeit, but I got it!  You know, it's become a joke to the people around me how nothing ever comes easy for me.  For some reason shit always goes wrong.  For example, after the deal was accepted and signed something came up with the house inspection (those effin things are useless...but that's another story...) so I had to drop the price another $2,000.  Then once the paperwork got to the lawyers another issue came up with the common area parking lot behind the house and I had to give her another credit of $1000 which my lawyer agreed to pay 1/2 of because he never pointed this issue out to me when I bought the house.  Don't think I didn't have to fight for that one though.  Then, the day before closing the law clerk called to tell me everything was ready and would I like to come in.  I said I would come the following day, on closing.  So assuming things weren't ready for some silly reason, I gave her a whole other day to get shit together but, what do you know, when I showed up on closing they claimed to be waiting for some things and didn't have my money yet!!!! What up with that? 

Anyway, I have to laugh if only to save myself from crying.  My husband took one of my old lines and used it on me the other night when I was feeling particularly discouraged.  He said "well you didn't lose and you learned a lot."  I ALREADY KNOW A LOT....JUST ONCE, CAN I WIN....CAN I JUST FUCKING WIN WITHOUT ALL THE BULLSHIT LESSONS ATTACHED!  I'm tired of learning.  At the ripe old age of 35 I should be close to knowing everything there is to know in life after all the shit I've been through and "learned from".  Give me a break!

I digress....

So, I am trying to stay house bound for the next year or so, so that I don't drive by anything I might be tempted to buy.  I need to save up some money first....but don't run away....cause I'll be back with another house flipping funny story someday!

Please Don't Let This Jinx Me :)

So 6 months minus 3 days, this damn house has been on the market BUT I got an offer on Friday!  Why?  Because I had a good plan.  House was originally listed for $259,900 then we lowered it to $254,900, then we lowered it to $244,900 and still nothing.  So last week I e-mailed my realtor late at night (because that's when I come up with brilliant ideas....when I am supposed to be sleeping) and I told him to pull it off and re-list as a new listing at $229,900 and to have an open house this past Sunday.  He told me that was too aggressive.  Well he's not paying the mortgage, taxes, heat, hydro, and staging furniture rental now is he!?!?!?  So I told him to just do it!  I got an offer the very next day for $225,000 and I countered with $229,000 for a closing date in less than 30 days.  The faster the better for me, right?  They agreed to the quick closing if I took $227,500.  I accepted.  It's, of course, conditional upon inspection and financing but those conditions have to be lifted by November 23rd.  I have my fingers crossed.

I bought the house for $185,000 and put $25,000 into it now (furnace conked out last week and that was $3500 and I am up to $2000 in furniture rental costs).  Also need to minus realtor fees of $10,000 and legal fees of $1500 and I am walking with $22,500 in my pocket.  So, at the end of the day, I am still ahead.

The usual question du jour is "Are you going to have anymore kids" and my answer is always "HELLS NO!"  Would I do another flip depsite this one being on the market for 6 months.....HELLS YES!  It was totally fun, I learned a lot and I still came out on top, so why not?  Of course I'll do it again.  It's all about timing.  I just have to wait for the right house at the right time.

Pray that inspection goes well and my buyer gets financing, ok?

Back from Hiding

So the deal fell through due to lack of financing...back in early June...and the house is still on the market now!  Why?  I don't get it!

All of the statistics say the Ottawa housing market is still strong.  Members of the Ottawa Real Estate Board sold 1,712 residential properties in June 2011 through the Board’s MLS® system compared with 1,543 in June 2010, an increase of 11%. In fact, here is a quote from the Ottawa Real Estate Board's President:
“It’s obvious that the dream of home ownership is alive and well in Ottawa, with solid sales numbers like these. First-time buyers are out in the market in a big way, due to continued low interest rates, and after last year’s HST-affected spring, we’re seeing a return to what the June resale market usually looks like in Ottawa.”

I am not really that worried about it though.  After my first offer fell through the buyer came back with a lower price that she could be financed for.  I said "no way".  I will not sell it at a low price just to get rid of it.  I will wait and get the price I want. 


So I wait....


There are still quite a few showings and I say as long as there is activity a buyer will come along sooner or later.  The place still looks awesome.  I have rented staging furniture for $400 per month and I freshen it up with a quick vacuuming and dusting each week.  


I have been laying low these days in terms of shopping for my next flip because it's a sellers market right now.  Although, someone called me the other day about a Power of Sale on Timberland Terrace.  The neighbour said it's "trashed".....to that I say "perfect".  I haven't made any calls about it yet or gone to see it but I have it tucked in my agenda and may pursue it this week.


I will keep you posted.  Keep your fingers crossed that my house sells before July 24th.  If not, I have another rental furniture payment due :(

Conditionally SOLD, baby!

I knew it!  This morning my husband asked me when I thought the house would sell and I said "today".  He laughed, and I said "I am telling you, it will sell today".  I was right! 

We listed the house 2 weeks ago.  There were no showings for the first 4 days.  Two agents previewed the house and both commented that the floors were rough and it would be better if they were refinished.  I called Advantage Flooring Care (http://www.flooringottawa.com/) on a Wednesday.  I told them I needed my floors done ASAP and fast.  They came on Friday, worked over the weekend and the house was ready for showings the following Monday.  I was very impressed with my floors and very grateful that the guys agreed to work over the weekend to get it done so quickly for me.  Then again the company is owned by an Indian guy and we all know I have a soft spot for Indians.....or do they have a soft spot for me?!?!?!  Anyway, totally nice guy, pleasure to deal with and the floors look awesome!  That Monday there was a showing and the agent expected an offer to come in.  There are three houses on the street for sale and all of us have the identical units.  The client saw all three and liked mine the best.  Of course, because mine is the best.  Modern ,everything new and very tastefully decorated by yours truly :)  No offer came through though.

This week I noticed that my two competitors were having an open house so I called my agent and told him we needed to have one this Sunday too.  We had 3 showings on Fri/Sat, open house today and I just signed the Agreement of Purchase and Sale an hour ago.

Listing price: $259,900.  Offer: $253,000.  Counter offer by me: $257,000.  Counter offer by buyer: $255,000.  Counter offer by me: sticking with $257,000.  Accepted!  I had hoped to sell for $260K so I am doing okay at $257K; however, I went over budget with my renos by redoing the floors for $2,400.  I am still up about $50,000 though and I am happy with that.

We are giving 5 days for inspection and financing....closing date August 12, 2011.  Stay tuned....

Done, Done....and Done!

The house is ready to be listed!  The granite installer is on his way and that is the last thing.  Art is on the wall, beds are made, floors are clean, flowers are planted, appliances sparkle....The place looks amazing!

I sat on the couch today and took a good look at the place.  I would have to say it's perfect except if I were personally going to live there I would sand and refinish the hardwood floors.  I thought about doing it but there is only so much money you can spend on a flip and only so much money you can spend on a house of that caliber in that particular neighbourhood.  The fact remains that the neighbourhood is still a lower income area and to spend all kinds of money turning a townhouse into a flawless beauty would not be worth it.  I would never get the return on my money.  Anyway, in future, I will consider that and perhaps leave something else out.  For this particular house I can't think of what I would have left out in place of refinishing the floors so I think it was the right decision.  Frankly, I don't even know what it costs to have that done - I'll have to look into that for future reference.

So, get this.  Last week a very similar house on a cross street a block away from me listed his on Grapevine for $299,000.  Get real!  The place is nothing special and there are 2 others listed around the corner for way less: one for $252,900 and the other for $259,900.  The one for $259,900 is 2 houses down from mine and I booked a showing to go see it last week.  It's nice, shows well and has some nice upgrades and a gorgeous deck off the back.  Anyone in their right mind would choose my neighbour's over the vacant, half assed fixed up one for $299,900 but NO!  There have been no offers in the week and a half my neighbour has had his/hers listed for but today the $299,000 one sold conditionally.  Obviously, the buyer has no agent either because an agent would have said you can get twice the house for $20K less around the corner...literally 100 meters away.  I can't believe it.  I am considering sitting outside and staking out the house for $299,900 and when the buyer comes back to look at the house again or sign some papers I will jump out of my truck and say "hey, I'll sell you mine for $275,00"....seriously.  WTF.  There has to be a way I can find out who that is.  Perhaps I should call the number on the listing and ask to come and see it....start chatting it up and see if I can get the name of the person with the offer on it....is that illegal? :)

Anyway, the moment you've all been waiting for....

Living Room Before:

Living room After:

Dining Room/Eating Area after:

Master Bedroom Before:

Master Bedroom After:

2nd Bedroom Before:

2nd Bedroom After:

Main Bathroom Before:

Main Bathroom After:

Fridge Before:

Fridge After:

Basement After:

Kitchen Before:

SNEAK PREVIEW ONLY of Kitchen after:

So, know anyone who wants to buy the sweetest little town home ever??  Great starter home, nice deck, 2 parking spots, all upgraded, didn't cut any corners!!!!!

OMG, OMG, OMG

OMG, OMG, OMG the house looks so awesome!

Last week my mom called to see how everything was going and she mistakenly offered her help if I needed it.  Well, I took her up on her offer and she came last Friday to help me clean.  I warned her that her project would be to clean the stove/oven.  As soon as she saw it, she offered to pay for a new one rather than clean it.  I was positive we could get that thing looking like new again with a little "elbow grease" (to use one of my mother's sayings :)  It took close to 2 hours to clean the outside.  When she opened it and saw the inside she got discouraged so I moved her over to bathroom duty and sprayed the oven with oven cleaner, closed it up and left it for 5 days.  Today (Wednesday) I opened it up, and just like I said, a little elbow grease and it's almost as good as new.  Really.  It's almost perfect on the inside.  It was SO disgusting.  It was like taking an inch of molasses off the bottom of the oven.  I will admit that I couldn't get the racks clean but buying new racks is way better than buying a whole new stove.  New appliances is not in my budget and I refuse to buy them!  Besides I bought them new in 2009 before I rented the house out.  They are only a year and a half old!

I didn't work much over the weekend but on Monday my mom and her fiance came to help me clean again.  We made a lot of progress.  We cleaned the entire basement, worked on the yard a bit and got the living room and dining room floors cleaned. 

Today the furniture arrived.  WOW, what a difference.  I spent about $300 on bedding, artwork and accessories.  I totally love it!  It looks so great.  The only thing left is curtains.  I bought all of them today but they are all too short except one set :(  I will exchange them tomorrow and I hope I can get similar styles, but longer.  Too short curtains is a pet peeve of mine.  It looks so cheap!  They are better of bunching up on the floor than being too short.  I feel the same way about pants by the way.  I am 5'11" and have very long legs.  If I can find pants long enough, surely everyone else can!  I hate too short pants!

Anyway, the house was supposed to list today but there is one small glitch - the granite counter top I wanted is out of stock so I had to choose a different one and that delayed the ordering process.  In fact, I don't know what colour I am getting.  I told the guy at the cabinet store to pick for me and get the order in asap.  I didn't feel it was necessary to drive out to the East end to look at samples again.  They told me they had narrowed it down to one lighter and one darker than I had originally ordered.  I told them to go with the lighter and I would trust they made a good choice for me :)We'll see what I get!

Once I have my new curtains hung tomorrow I will take some pictures.  It's too great.  Once you see it. you'll want to buy it!  Remember, this beautiful 3 bedroom urban townhouse can be yours for the sweet price of $270,000......well, for you, $260,000 :)

What Have I Spent?

Home Depot (Supplies) - 4254.46

Drywall (Supplies) - 50.00

Kitchen cabinet hardware/light fixtures (Supplies) - 165.00

Tile flooring (Supplies) - 385.00 (I have enough to do two more houses)

Kitchen cabinets/granite counter/sink - 5652.26

Wam/Bam Labour - 720.00

TL Construction Labour - 450.00

Basement Flooring - 1000.00

Painting - 2650.00

Junk Removal - 269.00

I still have a bit of outstanding labour to pay to my father-son team.  I expect that to be about $1000.  I also have to pay for the home staging at $400

Grand Total = $16,995.72

Well, I was aiming for a budget of 12,500 but I knew I would creep up to 15,000 so at the end of the day I am $2000 over budget.  Not too bad.

Remember, purchase price $185,000.  List price 269,900.  All good :)

Almost there...

As scheduled, all of the renovations are complete as of today!!!  Right on time.  Now it's my turn to go to work and clean the place!  On Monday, I will be going to Smart Choice (http://www.asmartchoice.ca/home-staging.html) to pick out all of the furniture I want to stage my home with.  It looks like a lot of fun.  The minimum "order" is $400 for the month but they move it in, set it up, and move it out.  Totally awesome.  That's what really pulls the place together - nice furniture and nice decor.  It already looks a million times better than it did when we started.  Oh, I forgot, the kitchen is not complete yet.  My cabinets and counter top are supposed to come in next week.  I have my fingers crossed that they come in on time and earlier in the week would be even better :)

The new carpet in the basement family room is so cushy and cozy that we all had to lay down on it today and try it out.  When you walk down the stairs you can't help but want to lie down on the floor and feel how soft it is.  So I did....and some of the contractors joined me.  It's got some seriously cushy under padding.  It's so warm and welcoming for a basement family room.  I usually HATE carpet, but this particular room called for it and it totally works.  When I went to check on the progress of the carpet yesterday evening and pay the guys we all sat down on the new rug and chatted about kids, families and life in general.  I admire how hard these guys work day in and day out.

So there is a promotion at Home Depot where you fill out a survey about your experience at Home Depot and use a code on your receipt for a chance to win a $3000 gift card.  That means that with every purchase you can fill out an entry to win.  You know I'm going to win that $3000!  I have so many frigging receipts I need to hire someone just to fill out surveys for me.  I actually like filling out surveys but I have to say I am tired of this particular one and the skill testing question is always the same.  At least challenge me with a new question each time, would ya?!?!  BTW, it's 16 in case you have a Home Depot receipt and don't feel like pulling out the calculator!  So far, I have 20 receipts and I have entered about 1/2 of them.  I love Home Depot.  I go there on average twice a day to pick up supplies for "the guys".  Most of the staff remember me now and are asking me how my project is going.  The paint department staff always remember me and are even getting close to remembering what colours I am using.  My colours look amazing by the way.  I am going trendy but neutral - beige, brown, grey, and light green (or Celedon as you are supposed to call it).  Looks great!  I also bought a really nice bedding set off Beyond The Rack.com yesterday that I will bring home and use in my own room when I am done staging the house.  Check it out:

The whole bedding package for $99!  Sweet deal.  All the decorative pillows and all.  My husband just can't understand why I decorate the bed with pillows that we don't use....men!!! 

I have purchased a few things from Beyond the Rack...it takes a while to get it but you can get some good deals some of the time.  Be careful though, not everything is a deal.

So I want to create a bidding war on the house.  I plan to list it on a Wednesday and state "No showings, no offers until Sunday Open House"....that way all the agents and home buyers will preview it on the MLS, love it, show up to the open house and then fight over it :)  However, next Sunday is a long weekend so I have been advised by my realtor to wait until the next weekend.  I wanted to do this sooner than later but I think he's right.  A lot of people go away for the weekend, have plans, weddings, parties, etc.  So I will wait another week which goes against my get it on the market quick to stay within the Spring housing rush philosophy but my realtor says one week won't make a difference.  I hope not.

Speaking of my realtor, he has asked me to give him a "shout out" on my blog.  I have to say that I don't think he has to work very hard with me.  2 of my houses have sold in one day and 100% of the time I have found the house I want to buy by myself; however, I am totally crazy and some people just don't get me or know how to handle me but he definitely gets me!  We work well together and we always have a good laugh.  I have been dealing with him for 10 years now - Wow, 10 years...time flies.  I sold my very first house through him and I have dealt with him ever since.  He is a totally sweet guy and he has a great team.  I am buzzing with enthusiasm and he is chill, so he balances me out. 

I have to say I gained a ton of respect for him when I referred him to my mother-in-law.  She asked (well, more like demanded) him to take care of her plants since she had already moved cities when her house was for sale.....AND HE DID!!!  He watered my crazy mother-in-law's plants!  If you're reading Reh, you know I love you!  Now that's a realtor for you! 

Anyway, despite the craziness, he is really nice guy and his team have sold a lot of houses in Ottawa.  Check them out: http://www.kealeygroup.com/about-the-kealey-group/

I will begin the cleaning tomorrow....stay tuned for the finish product.  You won't believe it!

Where Are We At?

Wow, things have been progressing at warp speed these last few days!  I have hired on two new guys and they are totally awesome!  I think the first day they came to work they were a little sceptical of this "skinny chick with pink hair" as the new foreman on the job :)  But we all get along great.  The "guys" - we can call them Wam and Bam - are a father and son team and they are fabulous workers.  They can do just about anything and they do things well.  I have never seen one standing around watching the other.  They are both always busy getting things done.  We have developed a nice working relationship over the past week.  They tell me what supplies they need, I go get them and then they attempt to tease me when I boast about how I bought all of the right "thingys" as they requested.  My brother worked all day Saturday to catch up and we are right on schedule with the renovations as of today.

So what have we done?  Let me give you a room by room breakdown starting at the top of the house and working our way down.

Main Bathroom - we (meaning Wam and Bam) have fixed a leaky sink, replaced the toilet seat (easier to buy a new on than to clean the old one in the state that it was in - yuck!), replaced the shower curtain rod, replaced the faucet with a new shiny one, installed a new light fixture, and installed baseboards. 

Left to do: Paint it, clean it and get a blind for the window

Bedroom One & Two - replaced the baseboards with new trim and painted

Bedroom Three - replaced the light fixture and painted

Left to do: Window coverings

Hallway - painted, cleaned the light fixture

Left to do: Install a new hand rail and secure the banister a little tighter/sturdier

Main entrance - replaced the light fixture and trim

Left to do: peel of wall paper and paint, add an entrance matt, and clean

Living Room/Dining Room - replaced the patio door with new French doors, installed crown moulding, replaced the old baseboards/trim with new

Left to do: Paint it, clean it, shine the hardwood, hang new light fixture in the dining room, and add window coverings

Kitchen - ripped out everything!  Replaced the ugly granite floor tiles with simple, clean ceramic tile and replaced the old baseboards

Left to do: Paint it, clean it and install new custom cabinets and counter top

I am using a new company called Focus Kitchen & Bath Co.  They gave me a good price so I am hoping they follow through with the timeline I gave them.  I asked for custom cabinets to be ready in 2 weeks....we'll see!  Check them out at http://www.focuskitchenandbathco.com/

Basement -   I realized I forgot to take "before" pictures of the basement.  That's too bad because it was probably the worst space in the house.  The bathroom was awful looking, the laundry room was certainly not a place where anything could get clean and the family room was definitely not fit for a family!  We are going to carpet the family room to give it a warmer feeling, we will be replacing all of the trim and tiling the laundry room.  We have created a nice closet with the extra space and put a bifold door on it.  Great for storage.

Second bath - "We" have ripped off some ugly mirrors and woodwork off the walls and re-drywalled, replaced the faucet, mounted a new mirror with 2 new light fixutres, replaced the old towel and toilet paper rack with new ones and fixed the shower curtain rod.

Left to do: Paint it, clean it and hang a new shower curtain.

The painters started today and they will be done by Friday (I hope).  After that, it's just a few small things and A LOT of cleaning.  That's where I come in.  Last week I couldn't stand the clutter of junk anymore so I called "Junk That Funk" http://www.junkthatfunk.com/ to take away some of the reno materials and crap left behind by my tenants.  They were awesome.  They came the same day I called and they took away everything.  They quoted me $219 + HST but I bargained them down to $200 taxes in and we called it a day :)  Today on the Kijiji Deal of the Day was a coupon for $179 worth of junk removal for $69.  I bought it and I will have the boys back tomorrow to get rid of the rest of the reno scraps.  Smokin' deal!

I am SO tired.  Did I mention I have an 8 month old baby.....and a 5 year old?!?!?!  I love the renos but I am too tired at night to blog about it :(  I will take some pics tomorrow and then again just before listing.  Because of the upcoming long weekend I am going to delay my listing until Wednesday May 25th.  This gives me more time to clean I guess :)

I am totally having a blast though....I don't find it stressful at all and I love the transformation.  I will certainly do it again.

Reno Day 2-4 - 1234 Summerville Ave.

Well, day 2-3 were really slow.  We only completed new door and window casings because my brother had to work off-site on other jobs that he had committed to.  I anticipated this would happen so I placed an ad on Kijiji on day one looking for general contractors.  I hired a father-son team last night and had them start this morning.  So far, so good.  I am basically "the runner".  I show up on-site in the morning, tell the guys what I need done.  Ask them what they need to get the job done and off to Home Depot I go.  As the day progresses I follow up and see if they have run into any problems and if there are any other supplies required.  It's working well.  I do a lot of clean up and make a lot of lists :)

I have chosen my cabinets and counter top and I am going with a new company called Focus Kitchen and Bath Co.  They have been super nice and super accommodating.  The price is really reasonable and I have my fingers crossed for the end result.  The kitchen in this house is very small and I am re-arranging it from it's previous layout to make it more spacious.  My new layout is simple and practical.

If only my fridge were that clean :)

Today is Thursday.  We have 11 days until listing. 

• Friday - finish flooring, drywall repairs, baseboard/trim and deck, close in basement stairs
• Saturday - family room and laundry room flooring install
• Sunday - catch up, if any
• Monday-Thursday - painting
• Friday - cleaning
• Saturday - cleaning
• Sunday - final touches
• Monday - staging furniture comes in and kitchen cabinet and counter install
• Tuesday - house for sale :)

Today's spending: 2826.13 deposit on custom cabinets + $338.32 building supplies

Tally to date: $6113.99

I'm half way through my spending budget and I have the following left:
Carpet - $1000
Painting - $2400
Supplies - $1500
General Labour - $1500
Staging - $400

Might be $500 over budget or so :(  Not too bad!

Reno Day 1 - 1234 Summerville Ave.

So we started the renovations yesterday.  Upon arrival to the house it was clear that my tenants had left behind a really nice mess for me to clean up.  And that dog they apparently didn't have shit all over the deck, in the flower boxes and best of all, on the basement floor.  We started with the fun part - demolition.  It's not like on TV though.  You can't just take a jack hammer to things and start ripping :)  For example, when removing the old baseboards we first had to cut along the edges with a knife to ensure the paint wouldn't rip off the walls and require additional plastering.  All of the kitchen cabinets came out and the back splash and granite floor tiles are next to go.

I decided to do a surface clean of the bathroom fixtures to make sure everything was salvageable.  I discovered a leak when the main bath sink drains.  It's an easy fix but I am not sure how long it's been going on for and I am 100% sure my tenants used it anyway leaving water to run onto the floor and in under the tile.  I can't see any serious water damage so far.  I think it's going to be okay. 

I know I shouldn't be, but I am astounded at how some people live.  I was wondering why the bathtubs were in such good shape when the rest of the house looked like a tornado went through it.  It turns out that the hot water/gas had been cut off due to non-payment so they obviously were not showering there.....and perhaps not showering anywhere.  It's difficult to clean with no hot water so I left it that.

My brother and I made our first real trip to Home Depot and bought all of the baseboards, 1/4 round and a few other small items like a new shower curtain rod, new bathroom light fixtures, a bathroom mirror, French doors to replace the existing patio door, and some cleaning supplies.  We dropped it all off at the house and called it a day.

I called my flooring guy to get a price on floor for the family room and the laundry room.  Up until yesterday that's all I knew about him - his name is Joe and he is a flooring guy.  I don't know the name of his company (or if he even has a company name), I don't know his last name, and I don't know where his shop is.  I did however find out that he has a Cuban girlfriend whom he visits every 10 weeks.  Before they met, she had no running water and dirt floors in her home.  Since floors are his forte, he hooked her up with some nice floors and some running water and he is now her hero.  He missed his last visit to her but he will make up for it on her birthday visit next month...so he tells me.  The story on Joe is this - he has been installing carpet/flooring for what might as well be 100 years.  I don't think he's ever done anything else.  He drives a beat up old white van and he has been in his share of trouble over the years.  From what I've heard he was beaten almost to death 7 years ago in a bar.  He survived but had to get major reconstructive surgery on his face and he was off for 2 years before he was fully recovered.  His thick black hair and clear blue eyes tell a tale of the past and I bet he was handsome back in the day. His nick name is "Red Neck Joe" but you can tell he is just a big softy.  He is a really nice guy and he always treats me with the utmost respect.  He took a look at my basement family room and my laundry room and quoted $1000....cash!  It's a deal.  Before he left he thanked me again for the natural remedies I gave him for his sore knee......6 YEARS AGO!!!!  Wow, I barely even remembered that until he mentioned it.  Now that is a true demonstration of how sweet this guy is.  If you need vinyl flooring, carpet or tile call Joe.  I do know his phone number, but that's about all I can tell you.

During the past few weeks leading up to today I have been shopping around for some deals.  Here is what I have spent to date, including today:

• 37 boxes of custom ordered ceramic tile from a renovation left over on Kijiji.ca = $325
• 3 light fixtures, a huge bag of decorative electric outlets, light switches and plate covers, a bag of brushed silver kitchen cabinet hardware, and a cold air return vent.  All brand new renovation left overs on Kijiji.ca = $165
• Oak spindles and railings + an oak fireplace mantle from a renovation left over on kijiji.ca = $150
• Today's Home Depot bill = $1854.54

TOTAL = $2494.54

Flip #1 - The Plan

OK, so here is my plan for my first flip.  Renovations will start May 2, 2011 and I am hoping they take 2 weeks, max!  Here's what I'll be doing:

• Change all baseboards and window/door casings
• Sandblast old heater vents (they have such character - house was built in 1954) and re-paint
• All doors have been updated to colonial doors except for 2 - replace 2 doors
• Change all interior door hardware (x 12 doors)
• Install 3 shelves in main bathroom & perhaps change light fixture
• Remove wallpaper in front entrance, paint and install coat rack
• Replace patio door
• Gut the entire kitchen - replace cabinets, sink, counter top, floor, and tear tiles off the walls and re-drywall, move fridge to new location may need electrical outlet installed
• Add crown moulding to living room/dining room
• Carpet runner for basement stairs
• Carpet basement floor over existing ceramic tile
• Replace basement window
• Second bathroom - not sure yet what to do with it but let's say new bath wall tub surround and rip off some tiles from the wall and re-drywall, new mirror and new light fixture
• Paint entire interior of house
• Paint exterior front door and small metal roof at front step/porch
• Plant some flowers/plants in 2 front flower beds and clean up yard

My budget - $12,500.  I know that seems low but my brother and I are a team.  He owns a construction company, TL Construction, and his labour is almost free (maybe a case of beer and a few meals) and for his guys I pay his costs.  All of the supplies we source together and see what kind of deals we can get.  For example, I picked up some tiles off Kijiji last weekend for $325.  A couple had bought them for their house and then changed their minds.  The tile was custom ordered so they couldn't return it.  I got enough tile for 2 flips.  I will use it for the kitchen in this house and will have tons left over for another project in the future.  If I had bought that tile at the store it would have been 3x that.

This house is not a true flip because I have owned it for a year and a half.  I have been renting it out.  In order to show exactly how much profit is made on this flip I want to track every expense possible.  Since I have owned the house for a while I have some starting figures.

Purchase Price                            185,000	Painting of whole house                    2,075
GenWorth Mortgage Insurance         4,200	Repairs & Maintenance                       629
House Insurance to date                    600	House Inspection                              315
Mortgage Interest to date                5,250	Duct Cleaning                                    314
Utilities & Taxes to date                   4,401	Pest Control                                       282
Electrical work                                    325	Initial Renovation Supplies                  995
Used Washer/Dryer                            175	Legal fees + Land Transfer             3,152
Used Stove                                       400	TOTAL =         $211,265.00

That is the true cost of my house so far, almost to the penny.  I am extremely organized and keep all receipts. I think this is key to being a successful house flipper.  As you can see all of these small costs really add up.  Since I have been renting the house I have also recouped some money.  $19,550 to be exact.

THE PLAN

I plan to sell the house for $260,000.  I have another 12,000 to spend on renovations and 15,000 on realtor/legal fees totalling 27,000. 

DO THE MATH

Initial Costs         211,265

Selling Costs         27,000 (Renos, realty, legal)

Total                   238,265

I will have spent 238,265 but that was offset by the rental income I earned of almost $20,000.  That leaves me at $218,265.  So I will sell the house for $260,000 and walk with about $41,000 (+ the mortgage amount of $15,000 I already paid).

You might be thinking that it's hardly worth it.  Well, I don't think so at all.  You see I will have about $55,000 at the end of the day and that leaves me with a nice chunk of money to try another flip and make more money.  This is a small scale first flip.  Didn't cost me much; not a huge risk; won't bankrupt me if it doesn't work out as planned.....Wow, that doesn't sound like me.  I usually jump in both feet without calculating the risk.  Perhaps I am finally learning :)

Stay tuned for the before pictures coming soon.

It all Starts Now!

Growing up, my mom always told me to buy a house rather than rent.  She told me that renting was a waste of money.  I have to admit that I don't usually take my mother's advice, but for some reason I listened to this one. 

When I was 22 years old I decided I was ready to move out and buy a house.  I took full advantage of the fact that my parents were paying for my University education so I worked while attending school and saved all of my earnings.  By 22 years of age I had graduated and had never seen the inside of a pub, bar or University party night.  People would call and ask if I was interested in going out but the answer was always the same: "No, I have to work".  I waitressed at night and taught fitness classes in between my university classes during the day.  It became a given that I would run into class at the last minute, all sweaty and usually end up falling asleep at some point.  I still aced my classes and completed my degree on time. 

One day I told Moses, an elderly realtor who worked out at one of the gyms I taught at, that I wanted to buy a house.  He asked me a few questions, most of which I didn't understand, and I began searching the MLS in my spare time.  Each week I would prepare a list of houses that I wanted to go see and he would chauffeur me around to the different places.  He asked me how much of a down payment I had and I asked him "how much do I need?"  That line is a clear indication of my personality.  It's not what I have, it's what I need.  I will always find a way to get what I need.  Most people reduce their spending if they notice they are short on money.  I am the opposite.  I find more money so that I can maintain my current standard of life.  There isn't much I can't do, given the chance.

Anyway, I found the perfect little townhouse for myself in the west end of the city.  I made an offer and we went back and forth until it was accepted.  I then asked Moses how much money I needed and he said $24,000.  I said I had better get to work.  I think I had somewhere around $12,000-$15,000 saved already.  I had 60 days til closing to come up with the money.  I picked up more fitness classes and extra waitressing shifts and on the day of closing I had $24,000 in my bank account! 

Now, I also needed to get a mortgage for the remaining balance.  I went to my regular bank and they wouldn't even look at me.  I was a waitress (mostly cash income) and I was a self-employed fitness instructor picking up contract work all over the city.  I tried another bank and they too pretty much laughed in my face.  I can't remember now how I ended up at Mabel's desk at CIBC on Bank St. but I did.  I sat with her in my sweaty gym clothes and gave her all the info to type into her trusty computer.  When she was finished asking me questions about income, employment, etc. she asked if she could have my mom's name and phone number.  My heart sank.  Here we go again, I thought.  She needs my mom to co-sign my mortgage and take care of me.  I can do it myself, I thought.  She immediately picked up the phone and called my mother right there while I sat in front of her.  When my mom answered the conversation went something like this:

Mabel: "Is your daughter Natalie Rivier?"
My mom: "yes" (she was probably thinking, uh oh, is she in trouble...after all, I did have her car stolen once in a parking lot when I left it running on a 40 below winter night...)
Mabel: "My name is Mabel and I am a mortgage specialist at CIBC.  I have your daughter here in front of me and I just wanted to tell you how wonderful she is and how proud of her you should be"
My mom: "Well thank you, I am very proud of her"
Mabel: "I am not sure if this approval will go through or not but I would personally co-sign for her if it doesn't because any young girl who has managed to save up $24,000 is a safe bet in my books!"

I felt like I was on top of the world!  I kicked ass!  I was going to buy my house.  The approval did go through and I moved in on May 31, 1999.  At that time, I had no idea what kind of gold mine I was sitting on.  I just knew that I had a cute little house that was all mine (and part CIBC's I guess).  Over the next 5 years I changed the hardware on my kitchen cupboards and painted them.  I finished the basement, I painted, I changed all of the flooring to hardwood and I replaced the interior doors and trim.  I must mention that I come from a home renovations family and that my boyfriend of the time, uncle and brother did most of the work for free.  I only paid for supplies.  On July 21, 2004 I decided that the market was probably at its peak for townhouses so I listed my place for sale.  It sold in 1 day for $180,000 and I had bought it for $94,000!!!  After the mortgage was paid off I walked out of my lawyer's office with a cheque for $102,000.  I was rich!

I took that money and of course, squandered some it....but not much.  I used a chunk of it to buy myself a business that has proven to be the best job I have ever had and has become a constantly growing and successful enterprise providing me and my family with a pretty handsome salary and a ton of freedom that has allowed me to raise my children and explore other ventures at the same time.

My side ventures are what have led me here. 

I have had 2 dreams for as long as I can remember.  One is to be famous and the other is to flip houses for a living.  I am about to have both my dreams come true.  I have my first house to flip and I will become a famous house flipper and some television network will pick me up and follow me around :)

Follow me on my journey.....I can guarantee you will learn something from me....or at the very least you will have a good laugh with me.

Renos start next week.  I need to go load my iPod up with house flipping tunes because I have a big job ahead!