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!